Nymex, Comex Exchanges Exploring Possible Merger

The New York Mercantile Exchange and Commodity Exchange Inc. said Wednesday that they were exploring a merger of the two markets, a combination that analysts said could give the Comex the most immediate rewards.

The two commodities markets announced that they were pursuing merger negotiations and would form a joint board that would govern any consolidated company resulting from a merger.

The exchanges, which trade precious metals and energy futures, said they agreed to form a joint governing board after their executive committees met Tuesday.

The markets’ respective boards instructed their executive committees to continue negotiations over the most efficient way to consolidate the administration and operations of the exchanges. Analysts said Nymex and Comex, which have been housed in the same lower Manhattan building since 1933, have discussed merging at various times over the last decade.

Sharing resources would mean greater efficiency and cost savings for both exchanges, but particularly for the smaller commodities exchange, they said.

The joint governing body will include a chairman who is a Nymex member, a vice chairman who is a Comex member, 16 Nymex member directors, eight Comex member directors and six public directors.