The New York Board of Trade has hired an investment bank to help assess its strategic options, with the most likely one being a transition to a cooperative structure, the exchange’s top executive said April 12.
The commodity and financial futures exchange, which now operates as a not-for-profit organization, has retained New York investment bank Brown Brothers Harriman & Co.
If adopted, the NYBOT would be the first exchange to take on a co-op structure, which would allow it to dole out payments to equity members based on how much revenue they generate for the exchange.
Co-op disbursements would be tax deductible for the exchange and shield exchange members from the double taxation dividends bring, NYBOT Chief Executive Harry Falk said in a press release. For now, the coop idea is being given greater weight than other options, such as a merger or an initial public offering of common stock, according to NYBOT executives.
Talk circulated in the past year of a possible merger of the NYBOT and the New York Mercantile Exchange, which share a building in downtown New York, but the NYBOT has downplayed that notion.
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