1105018--3/5/2007--NYMEX_HOLDINGS

related topics

{financial, litigation, operation}

{system, service, information}

{product, market, service}

{property, intellectual, protect}

{interest, director, officer}

{gas, price, oil}

{condition, economic, financial}

{capital, credit, financial}

{investment, property, distribution}

{regulation, government, change}

{regulation, change, law}

{competitive, industry, competition}

{acquisition, growth, future}

{operation, natural, condition}

{personnel, key, retain}

{cost, regulation, environmental}

{cost, contract, operation}

{cost, operation, labor}

Risks relating to the Company s business Intense competition could have a material adverse effect on the Company s market share and financial performance The Company s trading volume, and consequently its revenues and profits, could be materially adversely affected if the Company is unable to retain its current customers or attract new customers or if derivatives trading volume in general decreases The Company s decision to operate both electronic and open outcry trading venues may cause the Company to lose trading volume and may materially adversely affect its operating costs, markets and profitability Reductions in the fees the Company charges resulting from competitive pressures could lower its revenues and profitability. The Company depends primarily on the Chicago Mercantile Exchange for electronic trading Globalization, growth, consolidations and other strategic arrangements may impair the Company s competitive position The Company s clearinghouse operations expose the Company to substantial credit risk of third parties, and the Company s financial condition will be adversely affected in the event of a significant default Proposals of legislation or regulatory changes preventing clearing facilities from being owned or controlled by exchanges, even if unsuccessful, may limit or stop the Company s ability to run a clearinghouse The Company s revenues and profitability depend significantly upon trading volumes in the markets for light sweet crude oil futures and options contracts and Henry Hub natural gas futures and options contracts The Company s business depends in large part on fluctuations in commodities prices A decline in the availability of commodities traded in the Company s markets could reduce the Company s liquidity and may materially adversely affect the Company s revenues and profitability The Company depends on its executive officers and other key personnel The Company depends on third party suppliers for services that are important to its business The Company may be unable to keep up with rapid technological changes The success of the Company s markets will depend on the availability of electronic trading systems that have the functionality, performance, reliability, speed and liquidity required by the Company s customers Computer and communications systems failures and capacity constraints could harm the Company s reputation and its business Acts beyond the Company s control, including war, terrorism or natural disasters may result in the closing of the Company s trading and clearing operations and render the Company s backup data and recovery center inoperable The Company s networks and those of its third party service providers may be vulnerable to security risks Declines in the global financial markets may materially and adversely affect the Company s business Acquisitions and strategic partnerships, if any, may not produce the results expected by the Company The Company s market data fees may be reduced or eliminated by the growth of electronic trading and electronic order entry systems The Company s cost structure is largely fixed Damage to the Company s reputation could have a material adverse effect on its business Risks relating to the Company s capital structure The Company s governing documents provide for the protection and support of open outcry trading by granting certain voting and economic rights to the owners of the Class A memberships, who may have interests that differ from or may conflict with those of the Company s stockholders The COMEX Division governing documents provide for the protection and support of the COMEX Division by granting certain voting and other rights to the owners of the COMEX Division memberships which may restrict our ability to take certain actions that we might have otherwise implemented Holders of common stock who also own Class A memberships in NYMEX Exchange may have interests that differ from or may conflict with those of holders of common stock who are not also owners of Class A memberships in NYMEX Exchange Delaware law and provisions of the governing documents of NYMEX Holdings could enable the board of directors to prevent or delay a change of control of NYMEX Holdings and adversely affect market value Risks relating to regulation and litigation The legal framework for the industry has been modified, resulting in lower barriers to entry and decreased regulatory costs for competitors The nature and role of the Company s self-regulatory responsibilities may change The Company is subject to significant risks of litigation Any infringement by the Company on intellectual property rights of others could result in litigation and could materially adversely affect the Company s operations The Company may not be able to protect its intellectual property rights A negative outcome for the Company in New York Mercantile Exchange, Inc. v. IntercontinentalExchange, Inc. could adversely affect the Company s financial condition and operating results The Company s compliance and risk management methods might not be effective and may result in outcomes that could adversely affect its financial condition and operating results The Company s need to comply with extensive and complex regulation could have a material adverse effect on its business

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1105018--3/5/2007--NYMEX_HOLDINGS_INC