New York Mercantile Exchange - NYMEX
The world's largest physical commodity futures exchange. Trading is conducted through two divisions: the NYMEX Division, which is home to the energy, platinum and palladium markets, and the COMEX Division, where metals like gold, silver and copper and the FTSE 100 index options are traded. The NYMEX uses an outcry trading system during the day and an electronic trading system after hours.
Investopedia Commentary
In 1872, a group of dairy merchants founded "The Butter and Cheese Exchange of New York", and in 1994, the NYMEX merged with the COMEX (commodity exchange). Futures and options on energy and precious metals have become great tools when companies try to manage risk by hedging their positions. The ease with which these instruments are traded is vital to hedging activities and gauging future prices, making the NYMEX a vital part of the trading and hedging worlds.
You'll hear the NYMEX referred to as "The Merc".
Related Links
A Beginner's Guide To Hedging
Futures Fundamentals
Options Basics Tutorial
See also: Basis Risk, Commodity, Footsie, Futures, Hedge, Hedge Ratio, Open Outcry, Option, Precious Metals, Price Risk
Also spelled: NYMEX