Sept 25 CME Group Inc's New York
Mercantile Exchange building, home of the city's commodity
trading pits, has been sold to a unit of Toronto-based
Brookfield Asset Management Inc, the New York Post
newspaper reported on Wednesday.
CME Group plans to lease the building for two years as part
of the $200 million deal with Brookfield Financial Properties
before restructuring its energy trading operations into the
lower ground floor and entering a further 13-year lease, the
This will allow the exchange-operator to keep the famous oil
trading pits open. The New York Mercantile Exchange is the home
of the benchmark U.S. crude oil contract, commonly known as West
Texas Intermediate or WTI. Futures and options for natural gas
and precious metals also trade on the NYMEX floor.
While floor trading of oil futures has withered over the
last decade as deal-making has shifted to computers, the options
trading pit remains a hive of activity.
Brookfield will lease the upper floors of the NYMEX building
to other companies, the newspaper said.
Spokesmen for the CME Group and Brookfield declined to
comment to Reuters.
Shares of CME Group were up 1.9 percent at $74.39 in midday
trading in New York, while Brookfield fell 0.3 percent to
C$38.32 in Toronto.
Brookfield Asset Management has more than $175 billion in
assets under management, according to its website.