MAYOR MICHAEL R. BLOOMBERG AND GOVERNOR GEORGE E. PATAKI WELCOME THE NEW YORK BOARD OF TRADE BACK TO LOWER MANHATTAN

Board of Trade Moves Into Mercantile Exchange Building With Historic Lease Agreement

Mayor Michael R. Bloomberg and Governor George E. Pataki today joined The New York Board of Trade (NYBOT) as they signed an historic lease agreement with the New York Mercantile Exchange (NYMEX) to move into its building in the World Financial Center, bringing 3,200 jobs back into Lower Manhattan. The NYBOT, which lost its entire 4 World Trade Center trading facility in the September 11th terrorist attacks, has operated successfully out of a back-up facility in Long Island City, Queens, since September 17, 2001.

“Today marks another major step in this area’s recovery and signals the return of more than 3,200 jobs to Lower Manhattan,” said Mayor Bloomberg. “These proud employees will in turn help sustain thousands of restaurant and retail jobs in the neighborhood, further spurring Lower Manhattan’s remarkable renewal as a 24-hour commercial and residential neighborhood. The Board of Trade has shown the tough and resilient spirit that makes New York City the greatest City in the world and with pride we say ‘Welcome Home’.”

“This is further proof that Lower Manhattan is back and better than ever as the financial capital of the world,” said Governor Pataki. “Today’s historic lease signing not only underscores the growth and revitalization downtown, but it is also a fitting tribute to the members of the NYBOT and NYMEX families who lost their lives on that tragic day.”

The NYBOT has entered into a 10-year lease with NYMEX on more than 45,000 square feet of trading and office space. NYBOT’s new trading floor, scheduled to open in September 2003, will be shared with the Comex Exchange, the precious metals division of NYMEX.  It will cover roughly 13,100 square feet and contain 13 trading pits, similar to NYBOT’s original trading floor.  The exchange has embarked on a multi-staged plan to first rebuild the Comex’s pits and booths, and secondly build NYBOT’s new trading floor, both using the latest in floor and booth technologies.

“We are very grateful to have reached this day,” said Charles H. Falk, Chairman and Interim President of the New York Board of Trade. “While we will always remember our friends and colleagues who were lost on that tragic day, this new agreement with NYMEX will allow us to rebuild our historic marketplace and go forward. We’re proud to make this move back downtown, where we belong, and I want to thank the state, local and federal groups for making this happen, and I would especially like to thank our colleagues at NYMEX for allowing us to share their facility.”

The NYC Economic Development Corporation and the NYS Empire State Development Corporation recently granted NYBOT $23.3 million in aid to help in the rebuilding of its trading facility in the Downtown Financial District.  

“The determination and spirit of NYBOT’s workforce got the company up and running within days after the tragic events of September 11th,” said NYC Economic Development President Andrew Alper. “That spirit, coupled with the unprecedented cooperation among the City, State and private sector, has allowed us to make great strides in returning Lower Manhattan to its place as the financial capital of the world. By moving back to Lower Manhattan, NYBOT joined more than sixty other large companies and thousands of small businesses that have made a commitment to Lower Manhattan. It’s that kind of commitment that will help revitalize Lower Manhattan.”

NYBOT’s trading facilities, back offices and data center were completely destroyed in the September 11th attacks.  While the exchange headquarters was evacuated immediately after the first plane hit the North tower, four members of NYBOT lost their lives in other buildings in the Trade Center complex.  Because the Exchange had established an emergency back-up facility after the 1993 bombing of the World Trade Center, NYBOT was the first trading floor to re-open on September 17th. Immediately after the September 11th terrorist attacks, the NYMEX Board extended the offer to NYBOT to explore moving into its facilities on One North End Avenue, and the two exchanges began discussions towards that goal.