94-11747. Merger of the Commodity Exchange, Inc., and the New York Mercantile Exchange

[Federal Register Volume 59, Number 92 (Friday, May 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11747]


[[Page Unknown]]

[Federal Register: May 13, 1994]


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COMMODITY FUTURES TRADING COMMISSION

 

Merger of the Commodity Exchange, Inc., and the New York 
Mercantile Exchange

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of the proposed merger of the Commodity Exchange, Inc., 
and the New York Mercantile Exchange and of proposed rules and rule 
amendments to implement that merger.

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SUMMARY: The New York Mercantile Exchange (``NYMEX'') has submitted a 
plan to merge NYMEX and the Commodity Exchange, Inc., (``COMEX'') and 
proposed new rules and rule amendments to implement the merger. Acting 
pursuant to the authority delegated by Commission Regulation 140.96, 
the Division of Trading and Markets has determined to publish the 
proposal for public comment. The Division believes that publication of 
the proposal is in the public interest and will assist the Commission 
in considering the views of interested persons.

DATES: Comments must be received on or before June 13, 1994.

FOR FURTHER INFORMATION CONTACT: Clarence Sanders, Attorney, Division 
of Trading and Markets, Commodity Futures Trading Commission, 2033 K 
Street NW., Washington, DC 20581. Telephone: [phone].

SUPPLEMENTARY INFORMATION:

I. Description of Proposed Rules and Rule Amendments

    By a letter dated May 6, 1994, NYMEX submitted for Commission 
approval pursuant to Section 5a(a)(12)(A) of the Commodity Exchange Act 
(``Act'') proposed rule amendments designed to implement a Plan of 
Merger (``Plan'') between NYMEX and COMEX.1 Under the Plan, COMEX 
would remain a separate corporate entity, but would be restructured as 
a wholly owned subsidiary of NYMEX (the ``COMEX Division''). Current 
COMEX memberships would be converted to transferable trading rights in 
the COMEX Division of NYMEX which would allow the holders access to 
COMEX Division markets. The Plan also would provide for certain cross-
access trading rights between members of NYMEX and members of the COMEX 
Division.
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    \1\The merger plan as set forth has been approved by the 
governing boards of both exchanges and by a vote of their 
memberships.
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    The COMEX Division would be governed by a Board of Directors 
selected by NYMEX. The COMEX Board would be advised by a COMEX 
Governors Committee on matters pertinent to specifically identified 
rights and obligations of the COMEX Division membership. The COMEX 
Governors Committee would be composed of ten members elected by the 
COMEX Division membership and also include three appointed members 
representing NYMEX.
    Except for the rules proposed to establish the newly created 
governance system for the COMEX Division, and to govern the associated 
rights and obligations of the COMEX Division membership, the proposed 
rule changes for the COMEX Division are substantively the same as 
existing NYMEX rules, which have previously received Commission 
approval.

II. Request for Comments

    The Commission requests comments from interested persons concerning 
any aspect of the proposed merger of COMEX and NYMEX that commenters 
believe raises issues under the Act or Commission regulations.
    Copies of the proposed rules and related materials are available 
for inspection at the Office of the Secretariat, Commodity Futures 
Trading Commission, 2033 K Street NW., Washington, DC 20581. Copies 
also may be obtained through the Office of the Secretariat at the above 
address or by telephoning [phone]. Some materials may be subject 
to confidential treatment pursuant to 17 CFR 145.5 or 145.9.
    Any person interested in submitting written data, views, or 
arguments on the proposed merger or proposed new rules or rule 
amendments should send such comments to Jean A. Webb, Secretary, 
Commodity Futures Trading Commission, 2033 K Street NW., Washington, DC 
20581, by the specified date.

    Issued in Washington, DC, on May 10, 1994.
Alan L. Seifert,
Deputy Director.
[FR Doc. 94-11747 Filed 5-12-94; 8:45 am]
BILLING CODE 6351-01-P