What Oil Slide? NYMEX CEO "Excited" By Energy Futures
The New York Mercantile Exchange went public on Nov. 17. But NYMEX President and CEO James Newsome stayed private – until today, when he granted his first interview exclusively to "Morning Call."
Newsome told CNBC’s Melissa Francis that NYMEX Holdings enjoys "numerous opportunities" to leverage its rich treasury -- on opening day, shares jumped from the $59 IPO price to trade at $133. But he isn’t worried by the potential volatility of having no margin limits: he trusts market forces, but says that “if need be” NYMEX can utilize price ceilings.
The CEO is "very excited" about one of those opportunities, its upcoming energy index futures contract. He pointed out that the contract can be "used as a hedging tool" in addition to a profit driver for investors.
Newsome demurred from a concrete stance on crude oil’s slide – Boone Pickens (see our earlier post) says prices hovering at $51 per barrel are very near a bottom - and Newsome ended up saying that NYMEX leadership remains "price neutral" on the subject.
FYI: Just so you know--NYMEX handles billions of dollars worth of energy products, metals, and other commodities being bought and sold on the trading floor as well as overnight computer systems. The prices quoted for transactions are the basis for prices that people pay for throughout the world. NYMEX is also the world's largest physical commodity futures exchange.