FAQ: New York Mercantile Exchange (NYMEX) – Strategic Development Initiatives

NYME NYMEX (now part of CME Group) is the world’s largest derivatives market and clearing house for energy. Market Reform and its individuals have worked with NYMEX on a number of strategic initiatives, including:

eNYMEX Establishment

eNYMEX was NYMEX’s initiative to provide internet-based trading and financial clearing of a wide-range of energy derivatives, including its extremely successful initiative to clear off-exchange/OTC trades (now known as Clearport).

Key Market Reform individuals were responsible for development of the business plan for the eNYMEX initiative, and provided subsequent advice on project management, organisation design, financial modelling, definition of business processes and system requirements, product development, and training.

Strategic Planning

Led a strategic initiative to define and articulate NYMEX’s growth strategy, and evaluate selected strategic initiatives, as a prelude to its initial public offering later in 2006.

Confidential Strategic Review Project

Conducted a review for NYMEX’s President and Board of Directors of a strategic overseas opportunity the exchange was pursuing.

Spot Market Clearing

The aim of Spot Market Clearing is to provide financial clearing for electricity spot markets, replacing the crude credit risk processes used by many with the robust processes of an accredited clearing house.  Work undertaken by the project included definition of the Spot Market Clearing concept and business plan, development of the process model, and marketing of the concept to key stakeholders.