Nymex to Offer Range of Oil Contracts

Nymex, which runs the New York Mercantile Exchange, plans to obtain regulatory approval to host trading of a slew of energy contracts.

The New York Mercantile Exchange hosts trading of contracts deriving their value from an underlying commodity or event, such as the price of gold or cocoa or a swing in interest rates. While the company already offers trading of some energy contracts, Nymex is partnering with LCH. Clearnet to offer two broad slates of oil, natural-gas and electricity futures.

Traders and brokers will be able to buy and sell these energy contracts at CME Globex, the system Nymex uses to list its contracts electronically. The trades will either by cleared by Nymex in New York or by LCH.Clearnet in London.

The companies expect trading to begin in the middle of the year.

"This is a solution that the market has been demanding," Nymex Chairman Richard Schaeffer said in a statement. "We are very pleased to be working closely with LCH.Clearnet to provide it."

The price of oil spiked to a record of more than $105 a barrel on Thursday. Oil prices have swelled more than 70 percent in the past year.