Nymex Chief Backs Merger With IPE

Daniel Rappaport, chairman of the New York Mercantile Exchange, has endorsed a proposed merger with London’s International Petroleum Exchange, a move that would bring together the world’s two largest energy markets. “I think it’s a unique strategic opportunity to ensure the continued strength of the global futures market,” Rappaport said in an interview. IPE Chairman Richard Reinert told reporters Nov. 21 that executives of Nymex, the larger of the two exchanges, invited him to discuss joining forces. The IPE board was expected to decide early next year how to respond, Reinert said. The IPE and Nymex offer futures contracts in oil, natural gas and other energy markets, with combined sales of $4 billion daily. The number of Nymex energy contracts traded was 75 million in 1996. The IPE had 16 million.