Nybot proposal to limit and eliminate permit holders

A New York Board of Trade (Nybot) unveiled new details in the exchange's plan to alter its trading permit rules (see FO Week Vol 11 No 15), effectively cutting the number of permit holders as the exchange demutualises as well as reducing trading rights.

In a memo obtained by FO Week, Nybot's seat restructuring committee proposed a number of changes that would eliminate unused trading permits and place new fees on them in the coming months. The issue was set to be addressed on 24 April at what was expected to be a confrontational meeting between exchange executives and permit holders.

The proposal has...