Glossary of Terms>N>New York Mercantile Exchange (NYMEX)

The world’s largest physical commodity futures exchange, and the preeminent trading forum for energy and precious metals. Transactions executed on the Exchange avoid the risk of counterparty default because the Exchange clearinghouse acts as the counterparty to every trade. Trading is conducted through two divisions, the NYMEX Division, home to the energy, platinum, and palladium markets; and the COMEX Division, on which all other metals trade. The Exchange pioneered the development of energy futures and options contracts.