Newspaper article THE JOURNAL RECORD

New York Manages to Retain Mercantile Exchange Offices

Newspaper article THE JOURNAL RECORD

New York Manages to Retain Mercantile Exchange Offices

Article excerpt

NEW YORK (AP) _ The New York Mercantile Exchange, the world's biggest energy futures market, said Thursday it will stay in New York, giving the city another victory against financial industry defections.

The New York Mercantile Exchange was lured by a package of city and state tax breaks and capital grants worth about $75 million, according to an official involved in the negotiations who asked not to be named.

It was the fourth time this year New York retained a major financial institution. Four other commodity exchanges, and the investment firms Morgan Stanley Group Inc. and Prudential Securities Inc. also received big incentives to stay.

The decision by the exchange keeps about 3,500 jobs in New York, in addition to about 18,000 at the other financial institutions. The exchange generates about $75 million a year in city and state taxes.

"The leaders of the Mercantile Exchange share the judgment of the leaders of other financial markets that New York City remains the financial capital of the world," Gov. Mario Cuomo said in a statement.

The exchange's board voted late Wednesday against moving to a site in Jersey City, N.J. The exchange earlier this year backed out of a plan to join the city's four other commodity exchanges in building a $150 million joint facility.

The five exchanges now share a cramped and technologically outdated trading facility in the World Trade Center. The New York Mercantile Exchange, the largest of the five, dropped out of the joint project after a failure to agree on the deal's financial terms.

After receiving 40 proposals, the Merc chose an existing building in lower Manhattan near the current site. …

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