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PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
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NYMEX HOLDINGS, INC.
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I'm pleased to have this opportunity to talk to you about where I feel our
exchange has been, where I believe it should be headed, and how I feel I can
help. In that regard, I'd like to begin by speaking a little about my efforts
to create our new Electricity contract. For years, few in our organization
thought Power was a viable NYMEX commodity. As a physical contract it had
already failed. They said it wasn't tradable and was far too volatile.
Well, I proved through hard work that that just wasn't the case. We've
established a contract -- a floor-traded contract -- that beautifully completes
our energy "menu" and makes NYMEX the first choice for trading the next great
commodity market we are likely to see -- POWER. Even in a marketplace decimated
by the fall of Enron and Williams and Duke, this contract has shown amazing
growth and has provided the power industry a crucial credit partner. PJM will
be a cornerstone in a quickly revitalizing electricity business -- an ENORMOUS
business -- and, because of my efforts, NYMEX will be at the forefront, leading
the way.
I'm proud of that -- proud that this contract is already making substantial
money for us, and will make a whole heck of a lot MORE money for us in the
future -- It's adding a lot of value to our shares, which is primary, but we're
also giving our brokers a new avenue to make money, and an inexpensive venue to
breed new local trading talent. I worked really hard for close to three years
to make PJM happen for only one reason: I own two seats that represent a hugh
investment for me as your seats do for you; and those shares continue to hold
the key to my family's future. I'm going to do whatever I can to help increase
the value of those seats -- increase them forever, if I can.
You all know me -- I've stood next to you, trading in the pits for more than 20
years now. I love this place, owe my life and success to it and I am committed
to fighting to see it maintained as it is --
so that the next generation of traders can have the same opportunities that I
have the same opportunities that I have been lucky enough to enjoy.
But the challenges we face to our livelihoods today are steep and growing, and
we must be ready to respond to them -- Can we continue to prove the validity of
our floor-traded model as the IDEAL of liquidity and integrity, as I believe it
is? Can we update our clearing system to one more appropriate to the 21st
Century? Can we remain competitive in the costs of entry to our markets? Can we
finally develop an electronic platform that will just plain work for us and our
clients without having the development costs threaten to bankrupt us? And yes,
can we continue to find and deliver the correct new products, like PJM, that
increase revenue and fuel growth?
With the recent, threatening challenge of competition from Enron a few years
back, we honestly got very lucky ........ they couldn't have self-destructed at
a more opportune time. With the continuing challenges of ICE and EUREX on the
horizon, I doubt those competitors will be quite as accommodating. But, with
focus, tenacity and a solid business plan, I am confident of our future. And,
with 20 years on the floor and my recent success in Electricity, I've shown the
imagination, intelligence and the drive to help meet the many challenges we
will face.
I believe we've only begun to tap our potential. Help me to realize it fully.
Thank you.
Good afternoon. My name is Michael McCallion and I am pleased to be here
today. I came to Commodities 23 years ago as a Comex clerk for Dean Witter,
rising to vice president of energy trading on the floor of the New York
Mercantile Exchange. As a NYMEX local for the past 13 years, I have traded
solely for my own account to meet the needs of my family. Being a local has
been, and continues to be, a large part of my business focus. However, my
ability to view the opportunities and challenges of the Exchange is a direct
result of the education I received through active participation on eight
Exchange committees. In running for the local seat, I offer my business and
committee experience, my integrity and a wholehearted commitment to help move
us forward to secure increased profitability, a global position and
extended shareholder value.
Those of you who know me know that I always complete what I set out to
do. It was only a few short years ago when we moved from elbowing our way in
the pit at Four World Trade to our current position as an international energy
powerhouse at our state-of-the-art facility here at North End Avenue. As the
only non-Executive Committee member invited to work on the Project Management
Committee, I take great pride in our transformation. We were able to ensure a
rapid resumption in the flow of business in the aftermath of September 11th.
Our foresight in planning this space has enabled us to control a $4.5 million
flow in annual revenue from this endeavor.
My motivation in acquiring the local seat is simple: What is in the best
interest of the Exchange is in our best interest. I am proud to have been an
integral member of the physical and financial transformation of the Exchange
and look forward to continuing, with your vote, to increase NYMEX's
profitability, visibility and market share. Toward this end, I am anxious to
embrace initiatives that will add value to your membership.
First, we must continue to nurture the liquidity and transparency of the
open outcry system as the base for all future growth of the Exchange. It is our
most valuable commodity. Second, we should enhance seat value by making each
trading right fully portable to ameliorate our ownership positions. Next, in
order to remain competitive, we must maintain a level playing field that
affords equal access to various sectors of the community in order to foster
healthy competition. Lastly, we must continue to market the ClearPort system as
an avenue of growth while simultaneously introducing new, efficient products.
My experience in successfully working with the different members of the
Executive Committee as well as serving as a director for the Commodities Floor
Brokers and Traders Association are testaments to my ability to get the job
done. You have my goals and my promise.
I am eager to continue my service to my fellow shareholders and the New
York Mercantile Exchange. Together, we have built a business that is robust and
respected. I welcome your vote for local board member so I may continue to
build upon NYMEX's strong foundation and to cement our leadership position and
future earnings.
I, Michael McCallion, am the beneficial owner of 1 share of common stock of
NYMEX Holdings, Inc. and 1 Class A membership in New York Mercantile Exchange,
Inc.
A proxy statement containing important information about the election of
directors of NYMEX Holdings, Inc. and other matters will be filed with the
Securities and Exchange Commission and mailed to the stockholders of NYMEX
Holdings prior to NYMEX Holdings' Annual Meeting of Stockholders scheduled for
March 16, 2004. You are encouraged to read the proxy statement when it becomes
available. When it is filed with the SEC, the proxy statement, as well as all
of NYMEX Holdings' SEC filings, can be obtained free of charge from the SEC's
website. Copies may also be obtained free of charge from the Office of
Corporate Governance of NYMEX Holdings.
I would like to thank the members of the exchange for their strong support in
my past elections, for the support I received from you each day, your honest
feedback, your solid suggestions and even your constructive criticism. I expect
to draw upon this support more than ever over the next three years and I thank
you for it in advance.
When elected Vice Chairman I committed to spend much of my time each day on the
floor and stay in touch with the lifeblood of this exchange. I am proud that no
matter how busy things got upstairs, I was able to maintain that commitment.
While it is not possible as Chairman to live up to this expectation, I do
pledge to spend as much time as possible on the floor, to maintain an open door
to the traders and shareholders whose livelihoods depend on our markets. I
will never lose sight of my roots.
I'd like to thank Dan Rappaport for his support and encouragement as a board
member in my first year as Vice Chairman. To the current board for assisting me
in my transition to the chairmanship and to Vinnie Viola, who from day one has
been generous with me in sharing his insight and expertise and in giving me his
confidence as I assumed new roles that enhanced my own expertise. I will be
delighted to continue to draw upon Vinnie's talents in his new role as
strategic consultant to the board. I wish him a speedy recovery and look
forward to having him at my side for the next 3 years.
Finally, I pledge to do my best 24 hours, 7 days a week to allow NYMEX to
continue to be a leader in the global, financial world. I will always be here
and you know where to find me.