September 25, 2013 / 4:56 PM / in 4 years

Brookfield buys CME Group's NYMEX building -NY Post

Sept 25 (Reuters) - CME Group Inc’s New York Mercantile Exchange building, home of the city’s commodity trading pits, has been sold to a unit of Toronto-based Brookfield Asset Management Inc, the New York Post newspaper reported on Wednesday.

CME Group plans to lease the building for two years as part of the $200 million deal with Brookfield Financial Properties before restructuring its energy trading operations into the lower ground floor and entering a further 13-year lease, the newspaper reported.

This will allow the exchange-operator to keep the famous oil trading pits open. The New York Mercantile Exchange is the home of the benchmark U.S. crude oil contract, commonly known as West Texas Intermediate or WTI. Futures and options for natural gas and precious metals also trade on the NYMEX floor.

While floor trading of oil futures has withered over the last decade as deal-making has shifted to computers, the options trading pit remains a hive of activity.

Brookfield will lease the upper floors of the NYMEX building to other companies, the newspaper said.

Spokesmen for the CME Group and Brookfield declined to comment to Reuters.

Shares of CME Group were up 1.9 percent at $74.39 in midday trading in New York, while Brookfield fell 0.3 percent to C$38.32 in Toronto.

Brookfield Asset Management has more than $175 billion in assets under management, according to its website.

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