CME Group Completes Consolidation of Two New York Trading Floors

Derivatives exchange is on track to save $60 million following NYMEX acquisition.

CME Group has completed the integration of its New York trading floors following the acquisition of energy and metals exchange NYMEX in 2008, according to the exchange holding company's release.

Completed in two phases, first CME Group reconfigured the energy- trading floor on April 20, and as of yesterday, it combined the energy and metals futures and options trading rings onto one trading floor. The two trading floors were consolidated into one facility at the NYMEX world headquarters in lower Manhattan. “We are confident that combining several markets into our trading rings will give members and customers access to greater liquidity on our New York trading floor. We look forward to moving forward with the integration of our clearing systems in the third quarter of this year,” commented CME Group Executive Chairman Terry Duffy in the release. Plans are to move forward with the integration of CME and NYMEX’s clearing systems in the third quarter of this year, according to Duffy.

CME was able to successfully complete the integration of its New York trading floors within nine months of acquiring NYMEX and is on track to realizing $60 million in annual cost synergies by the end of this year, noted CME Group CEO Craig Donohue in the release. “More importantly we continue to see strong growth opportunities in CME Group’s listed energy and metals markets, as well as through CME ClearPort, which now facilitates central counterparty clearing services for approximately 700 different over-the-counter derivatives instruments,” stated Donohue.

CME emphasized its commitment to New York City as a global financial center, which is now home to open outcry trading for NYMEX and COMEX futures and options, including crude oil, natural gas, heating oil, gasoline, gold, silver, copper, platinum, and palladium. CME expects integration of NYMEX to be substantially complete in Q4 2009.

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