The proposed sale of New York Board of Trade (Nybot) to
Intercontinental Exchange (ICE) has raised questions over
Nybot's trading floor lease with rival New York Mercantile
The deal, announced late last week, would pay $1bn in cash
and ICE stock to Nybot members for the exchange and its
clearinghouse. However, some observers have noted the potential
takeover could cause a problem regarding the floor lease
agreement Nybot has with Nymex and whether or not the deal
would violate it.
Nybot agreed to a non-compete clause, prohibiting it from
offering any competing contracts.
The issue being examined by Nymex last week was whether that
clause could be extended after ICE's purchase of Nybot while
ICE was in competition with Nymex on energy contracts. Sources
close to Nybot and ICE said that both exchanges have gone over
the lease agreement extensively and concluded that the buyout
would not conflict with the terms of the lease because the
"competing contracts" clause only applied to floor-based traded
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