UNITED STATES OF AMERICA

Before the

COMMODITY FUTURES TRADING COMMISSION

_______________________________________

In the Matter of the Request for Transfer of All
Existing New York Mercantile Exchange
Contract Market Designations
To New York Mercantile Exchange, Inc.

_______________________________________

ORDER OF TRANSFER OF DESIGNATIONS

        New York Mercantile Exchange (“NYMEX”), NYMEX Holdings, Inc. (“NYMEX Holdings”), and New York Mercantile Exchange, Inc. (“NYMEX, Inc.”) having submitted, pursuant to Section 6 of the Commodity Exchange Act (“Act”), 7 U.S.C. § 8, a request for the transfer of all NYMEX’s existing contract market designations, as listed in Appendix A, to a subsidiary of NYMEX Holdings (a Delaware stock corporation), NYMEX, Inc. (a Delaware non-stock corporation), into which NYMEX will merge, and the Commodity Futures Trading Commission (“Commission”) having reviewed the request, the complete record in this matter, the accompanying representations of NYMEX, NYMEX Holdings and NYMEX, Inc. and for the reasons set forth in the Memorandum submitted to the Commission by the Division of Trading and Markets recommending transfer of these contract market designations to NYMEX, Inc., the Commission finds that for purposes of this request NYMEX, Inc. has demonstrated its ability, upon completion of the merger, to comply with the requirements under the Act and the Commission’s regulations thereunder applicable to it. Therefore,

        WHEREAS, NYMEX, NYMEX Holdings and NYMEX, Inc. represent that NYMEX, Inc. will, upon the merger, be the legal successor-in-interest to NYMEX, will meet all the requirements for contract market designation, will assume all the assets and liabilities of NYMEX and will continue to comply with all self-regulatory requirements applicable to designated contract markets under the Act and the Commission’s regulations including, but not limited to, the surveillance and enforcement requirements, the governing board and disciplinary committee composition requirements, and the prohibitions against conflicts of interest and insider trading;

        WHEREAS, NYMEX Holdings has adopted, in its Bylaws or Resolutions, the standards set forth in Commission Regulations 1.59, 1.63, 1.64 and 1.69; and

        WHEREAS, the Act and the Commission’s regulations would apply to NYMEX Holdings, as owner, parent and principal of NYMEX, Inc., a subsidiary of NYMEX Holdings and a designated contract market, to the same extent that the Act and the Commission’s regulations apply to any person that owns, controls or is a principal of another person;

        IT IS HEREBY ORDERED, under Section 5 of the Act, 7 U.S.C. § 7, that the request of NYMEX for transfer of all its existing contract market designations, as listed in Appendix A, to NYMEX, Inc. is granted and, therefore, NYMEX, Inc. is designated as a contract market for all such contracts;

        IT IS FURTHER ORDERED that this transfer of NYMEX’s existing contract market designations and grant of contract market designation to NYMEX, Inc. shall be subject to compliance with all sections of the Act and regulations thereunder applicable to NYMEX, Inc. as a contract market and that this transfer of contract market designations and the commencement and/or continuance of exchange operations shall be specifically subject to the following conditions:

(a) The existence of NYMEX, Inc. as a corporation duly authorized and validly organized under the General Corporation Law of Delaware;

(b) The consummation of the merger of NYMEX into NYMEX, Inc. and NYMEX Holdings, simultaneous with the foregoing transfers;

(c) The adoption of the NYMEX Rulebook, as amended, by NYMEX, Inc.; and

(d) The compliance of NYMEX, Inc. with all applicable provisions of the Act and the Commission’s regulations thereunder.

        Issued in Washington, D.C., this 26th day of July, 2000.

By the Commission

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Jean A. Webb
Secretary of the Commission