##### Table of Contents





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-Q



|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the Quarterly Period Ended March 31, 2008



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the Transition Period from                     to





Commission File Number
001-33149

NYMEX Holdings, Inc.



|                         |  |                                        
|------------------------ |  | ---------------------------------------
|Delaware                 |  | 13-4098266                             
|(State of Incorporation) |  | (I.R.S. Employer Identification Number)

One North End Avenue

World Financial Center

New York, New York 10282-1101

(212) 299-2000





Indicate by check mark whether
the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.
See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.



|                           |  |                      |  |                          |  |                             
|-------------------------- |  | -------------------- |  | ------------------------ |  | ----------------------------
|Large accelerated filer  x |  | Accelerated filer   ̈ |  | Non-accelerated filer   ̈ |  | Smaller reporting company   ̈

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).    Yes   ̈    No  x

Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date.

A total of 94,778,510 shares of the registrants $0.01 par value common stock were outstanding at May 9, 2008.









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##### Table of Contents

TABLE OF CONTENTS

PART I: FINANCIAL INFORMATION



|                           |  |                                                                                                                                                          |  |     
|-------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|                           |  |                                                                                                                                                          |  | Page
|Item 1.                    |  | Financial Statements                                                                                                                                     |  |     
|                           |  |                                                                                                                                                         
|                           |  | Condensed Consolidated Statements of Income for the three months ended March 31, 2008 and 2007 (Unaudited)                                               |  | 1   
|                           |  |                                                                                                                                                         
|                           |  | Condensed Consolidated Balance Sheets as of March 31, 2008 (Unaudited) and December 31, 2007                                                             |  | 2   
|                           |  |                                                                                                                                                         
|                           |  | Condensed Consolidated Statements of Stockholders Equity for the three months ended March 31, 2008 (Unaudited) and for the year ended December 31, 2007 |  | 3   
|                           |  |                                                                                                                                                         
|                           |  | Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2008 and 2007 (Unaudited)                                           |  | 4   
|                           |  |                                                                                                                                                         
|                           |  | Notes to the Unaudited Condensed Consolidated Financial Statements                                                                                       |  | 5   
|                           |  |                                                                                                                                                         
|Item 2.                    |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                                                    |  | 26  
|                           |  |                                                                                                                                                         
|Item 3.                    |  | Quantitative and Qualitative Disclosures about Market Risk                                                                                               |  | 41  
|                           |  |                                                                                                                                                         
|Item 4.                    |  | Controls and Procedures                                                                                                                                  |  | 43  
|                           | 
|PART II: OTHER INFORMATION |  |                                                                                                                                                         
|                           |  |                                                                                                                                                         
|Item 1.                    |  | Legal Proceedings                                                                                                                                        |  | 44  
|                           |  |                                                                                                                                                         
|Item 1A.                   |  | Risk Factors                                                                                                                                             |  | 44  
|                           |  |                                                                                                                                                         
|Item 2.                    |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                              |  | 44  
|                           |  |                                                                                                                                                         
|Item 3.                    |  | Defaults upon Senior Securities                                                                                                                          |  | 44  
|                           |  |                                                                                                                                                         
|Item 4.                    |  | Submission of Matters to a Vote of Security Holders                                                                                                      |  | 44  
|                           |  |                                                                                                                                                         
|Item 5.                    |  | Other Information                                                                                                                                        |  | 44  
|                           |  |                                                                                                                                                         
|Item 6.                    |  | Exhibits                                                                                                                                                 |  | 45  
|                           |  |                                                                                                                                                         
|                           |  | Signatures                                                                                                                                               |  | 46  



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##### Table of Contents

PART I: FINANCIAL INFORMATION



|Item 1. | Financial Statements
|------- | --------------------

NYMEX HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except for share data)



|                                                                   |  |                             |            |   |      |   |            |  
|------------------------------------------------------------------ |  | --------------------------- | ---------- | - | ---- | - | ---------- | -
|                                                                   |  | Three Months EndedMarch 31, |           
|                                                                   |  | 2008                        |            |   | 2007 |  
|Operating Revenues                                                 |  |                             |            |   |      |   |            |  
|Clearing and transaction fees                                      |  | $                           | 179,051    |   |      | $ | 138,177    |  
|Market data fees                                                   |  |                             | 26,213     |   |      |   | 23,137     |  
|Other                                                              |  |                             | 3,611      |   |      |   | 2,912      |  
|                                                                   |  |                             |            |   |      |   |            |  
|Total operating revenues                                           |  |                             | 208,875    |   |      |   | 164,226    |  
|                                                                   |  |                             |            |   |      |   |            |  
|Operating Expenses                                                 |  |                             |            |   |      |   |            |  
|Direct transaction costs                                           |  |                             | 28,083     |   |      |   | 24,102     |  
|Salaries and employee benefits                                     |  |                             | 19,976     |   |      |   | 21,038     |  
|Occupancy and equipment                                            |  |                             | 5,760      |   |      |   | 5,943      |  
|Depreciation and amortization, net of deferred credit amortization |  |                             | 3,458      |   |      |   | 3,531      |  
|General and administrative                                         |  |                             | 4,621      |   |      |   | 4,697      |  
|Professional services                                              |  |                             | 3,126      |   |      |   | 4,186      |  
|Telecommunications                                                 |  |                             | 1,250      |   |      |   | 1,423      |  
|Marketing                                                          |  |                             | 1,350      |   |      |   | 1,933      |  
|Other expenses                                                     |  |                             | 8,363      |   |      |   | 1,661      |  
|                                                                   |  |                             |            |   |      |   |            |  
|Total operating expenses                                           |  |                             | 75,987     |   |      |   | 68,514     |  
|                                                                   |  |                             |            |   |      |   |            |  
|Operating income                                                   |  |                             | 132,888    |   |      |   | 95,712     |  
|                                                                   |  |                            
|Non-Operating Income and Expenses                                  |  |                             |            |   |      |   |            |  
|Investment income, net                                             |  |                             | 3,614      |   |      |   | 6,707      |  
|Interest income from securities lending                            |  |                             | 7,768      |   |      |   | 29,406     |  
|Interest expense/fees from securities lending                      |  |                             | (6,048     | ) |      |   | (28,889    | )
|Interest expense                                                   |  |                             | (1,586     | ) |      |   | (1,612     | )
|Losses from unconsolidated investments                             |  |                             | (2,210     | ) |      |   | (1,643     | )
|                                                                   |  |                             |            |   |      |   |            |  
|Total non-operating income and expenses                            |  |                             | 1,538      |   |      |   | 3,969      |  
|                                                                   |  |                             |            |   |      |   |            |  
|Income before provision for income taxes                           |  |                             | 134,426    |   |      |   | 99,681     |  
|Provision for income taxes                                         |  |                             | 63,241     |   |      |   | 43,461     |  
|                                                                   |  |                             |            |   |      |   |            |  
|Net income                                                         |  | $                           | 71,185     |   |      | $ | 56,220     |  
|                                                                   |  |                             |            |   |      |   |            |  
|Earnings per Share                                                 |  |                             |            |   |      |   |            |  
|Basic                                                              |  | $                           | 0.75       |   |      | $ | 0.60       |  
|                                                                   |  |                             |            |   |      |   |            |  
|Diluted                                                            |  | $                           | 0.75       |   |      | $ | 0.59       |  
|                                                                   |  |                             |            |   |      |   |            |  
|Weighted Average Number of Common Shares Outstanding               |  |                             |            |   |      |   |            |  
|Basic                                                              |  |                             | 94,780,000 |   |      |   | 94,450,000 |  
|                                                                   |  |                             |            |   |      |   |            |  
|Diluted                                                            |  |                             | 94,964,000 |   |      |   | 94,808,000 |  
|                                                                   |  |                             |            |   |      |   |            |  

See accompanying notes to the unaudited condensed consolidated financial
statements.



1



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except for share data)



|                                                                                                                                                                                                                                                                          |  |               |           |                  |   |          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | --------- | ---------------- | - | ---------
|                                                                                                                                                                                                                                                                          |  | March 31,2008 |           | December 31,2007
|                                                                                                                                                                                                                                                                          |  | (Unaudited)   |           |                 
|Assets                                                                                                                                                                                                                                                                    |  |               |           |                  |   |          
|Cash and cash equivalents                                                                                                                                                                                                                                                 |  | $             | 2,631     |                  | $ | 3,296    
|Collateral from securities lending program                                                                                                                                                                                                                                |  |               | 819,618   |                  |   | 842,444  
|Marketable securities, at fair value                                                                                                                                                                                                                                      |  |               | 554,822   |                  |   | 461,142  
|Clearing and transaction fees receivable, net of allowance for member credits                                                                                                                                                                                             |  |               | 66,879    |                  |   | 38,443   
|Prepaid expenses                                                                                                                                                                                                                                                          |  |               | 8,628     |                  |   | 8,786    
|Margin deposits and guaranty funds                                                                                                                                                                                                                                        |  |               | 28,131    |                  |   | 170,192  
|Other current assets                                                                                                                                                                                                                                                      |  |               | 21,208    |                  |   | 34,097   
|                                                                                                                                                                                                                                                                          |  |               |           |                  |   |          
|Total current assets                                                                                                                                                                                                                                                      |  |               | 1,501,917 |                  |   | 1,558,400
|Property and equipment, net                                                                                                                                                                                                                                               |  |               | 176,485   |                  |   | 176,471  
|Goodwill and indefinite-lived intangible asset                                                                                                                                                                                                                            |  |               | 307,125   |                  |   | 307,125  
|Long-term investments                                                                                                                                                                                                                                                     |  |               | 161,005   |                  |   | 178,036  
|Other assets                                                                                                                                                                                                                                                              |  |               | 7,077     |                  |   | 7,121    
|                                                                                                                                                                                                                                                                          |  |               |           |                  |   |          
|Total assets                                                                                                                                                                                                                                                              |  | $             | 2,153,609 |                  | $ | 2,227,153
|                                                                                                                                                                                                                                                                          |  |               |           |                  |   |          
|Liabilities and Stockholders Equity                                                                                                                                                                                                                                      |  |               |           |                  |   |          
|Accounts payable and accrued liabilities                                                                                                                                                                                                                                  |  | $             | 20,228    |                  | $ | 15,723   
|Accrued salaries and related liabilities                                                                                                                                                                                                                                  |  |               | 9,212     |                  |   | 17,107   
|Payable under securities lending program                                                                                                                                                                                                                                  |  |               | 827,395   |                  |   | 847,581  
|Margin deposits and guaranty funds                                                                                                                                                                                                                                        |  |               | 28,131    |                  |   | 170,192  
|Income tax payable                                                                                                                                                                                                                                                        |  |               | 47,333    |                  |   | 2,704    
|Other current liabilities                                                                                                                                                                                                                                                 |  |               | 43,492    |                  |   | 31,122   
|                                                                                                                                                                                                                                                                          |  |               |           |                  |   |          
|Total current liabilities                                                                                                                                                                                                                                                 |  |               | 975,791   |                  |   | 1,084,429
|Grant for building construction deferred credit                                                                                                                                                                                                                           |  |               | 103,485   |                  |   | 104,021  
|Long-term debt                                                                                                                                                                                                                                                            |  |               | 77,464    |                  |   | 77,464   
|Members retirement obligation                                                                                                                                                                                                                                            |  |               | 11,995    |                  |   | 12,038   
|Other liabilities                                                                                                                                                                                                                                                         |  |               | 12,773    |                  |   | 23,646   
|                                                                                                                                                                                                                                                                          |  |               |           |                  |   |          
|Total liabilities                                                                                                                                                                                                                                                         |  |               | 1,181,508 |                  |   | 1,301,598
|                                                                                                                                                                                                                                                                          |  |               |           |                  |   |          
|Commitments and contingencies                                                                                                                                                                                                                                             |  |               |           |                  |   |          
|                                                                                                                                                                                                                                                                          |  |              
|Stockholders equity                                                                                                                                                                                                                                                      |  |               |           |                  |   |          
|Common stock, $0.01 par value; 181,909,600 shares authorized, 94,784,988 and 94,769,342 shares issued as of March 31, 2008 and
December 31, 2007, respectively; and 93,986,539 and 93,972,289 shares outstanding as of March 31, 2008 and December 31, 2007, respectively |  |               | 948       |                  |   | 948      
|Additional paid-in capital                                                                                                                                                                                                                                                |  |               | 832,961   |                  |   | 828,227  
|Retained earnings                                                                                                                                                                                                                                                         |  |               | 135,558   |                  |   | 73,851   
|Accumulated other comprehensive income, net of tax                                                                                                                                                                                                                        |  |               | 2,634     |                  |   | 22,529   
|                                                                                                                                                                                                                                                                          |  |               |           |                  |   |          
|Total stockholders equity                                                                                                                                                                                                                                                |  |               | 972,101   |                  |   | 925,555  
|                                                                                                                                                                                                                                                                          |  |               |           |                  |   |          
|Total liabilities and stockholders equity                                                                                                                                                                                                                                |  | $             | 2,153,609 |                  | $ | 2,227,153
|                                                                                                                                                                                                                                                                          |  |               |           |                  |   |          

See accompanying notes to the unaudited condensed consolidated financial
statements.



2



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY

(in thousands, except for share data)



|                                                                                          |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  
|----------------------------------------------------------------------------------------- | ------ | ------------ | ------ | ------------------------ | --- |  | ------------------------- | ------- | - | ------------------------------------------ | - | -------- | ------------------------ |  | - | ------- | - |  | - | -------- | -
|                                                                                          |        | Common Stock |        | AdditionalPaid-inCapital |     |  | RetainedEarnings(Deficit) |         |   | AccumulatedOtherComprehensiveIncome (Loss) |   |          | TotalStockholdersEquity | 
|                                                                                          | Shares |              | Amount |                          |     |  |                          
|Balances at January 1, 2007                                                               |        | 94,449,800   |        | $                        | 944 |  | $                         | 796,585 |   |                                            | $ | (21,823  | )                        |  | $ | (784    | ) |  | $ | 774,922  |  
|Comprehensive income:                                                                     |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  
|Net income                                                                                |        |             |        |                          |    |  |                           |        |   |                                            |   | 224,039  |                          |  |   |        |   |  |   | 224,039  |  
|Foreign currencies translations                                                           |        |             |        |                          |    |  |                           |        |   |                                            |   |         |                          |  |   | 385     |   |  |   | 385      |  
|Postretirement benefits, net of deferred income tax of $548                               |        |             |        |                          |    |  |                           |        |   |                                            |   |         |                          |  |   | 773     |   |  |   | 773      |  
|Unrealized gain on available-for-sale securities, net of deferred income taxes of $12,188 |        |             |        |                          |    |  |                           |        |   |                                            |   |         |                          |  |   | 22,155  |   |  |   | 22,155   |  
|                                                                                          |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  
|Total comprehensive income                                                                |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   | 247,352  |  
|                                                                                          |        |              |        |                          |     | 
|Dividends declared:                                                                       |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  
|Common stock, $0.10/share on April 30, 2007                                               |        |             |        |                          |    |  |                           |        |   |                                            |   | (9,445   | )                        |  |   |        |   |  |   | (9,445   | )
|Common stock, $0.10/share on August 1, 2007                                               |        |             |        |                          |    |  |                           |        |   |                                            |   | (9,445   | )                        |  |   |        |   |  |   | (9,445   | )
|Common stock, $0.10/share on September 30, 2007                                           |        |             |        |                          |    |  |                           |        |   |                                            |   | (9,475   | )                        |  |   |        |   |  |   | (9,475   | )
|Common stock, $1.06/share on September 30, 2007                                           |        |             |        |                          |    |  |                           |        |   |                                            |   | (100,000 | )                        |  |   |        |   |  |   | (100,000 | )
|Share-based compensation amortization                                                     |        |             |        |                          |    |  |                           | 10,109  |   |                                            |   |         |                          |  |   |        |   |  |   | 10,109   |  
|Direct costs of initial public offering                                                   |        |             |        |                          |    |  |                           | (346    | ) |                                            |   |         |                          |  |   |        |   |  |   | (346     | )
|Exercise of employee stock options                                                        |        | 265,150      |        |                          | 3   |  |                           | 15,641  |   |                                            |   |         |                          |  |   |        |   |  |   | 15,644   |  
|Issuance of restricted stock and stock units                                              |        | 54,392       |        |                          | 1   |  |                           |        |   |                                            |   |         |                          |  |   |        |   |  |   | 1        |  
|Excess net tax benefit related to share-based compensation                                |        |             |        |                          |    |  |                           | 6,238   |   |                                            |   |         |                          |  |   |        |   |  |   | 6,238    |  
|                                                                                          |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  
|Balances at December 31, 2007                                                             |        | 94,769,342   |        | $                        | 948 |  | $                         | 828,227 |   |                                            | $ | 73,851   |                          |  | $ | 22,529  |   |  | $ | 925,555  |  
|                                                                                          |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  
|Comprehensive income:                                                                     |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  
|Net income                                                                                |        |             |        |                          |    |  |                           |        |   |                                            |   | 71,185   |                          |  |   |        |   |  |   | 71,185   |  
|Foreign currencies translations, net of deferred income taxes of $74                      |        |             |        |                          |    |  |                           |        |   |                                            |   |         |                          |  |   | (320    | ) |  |   | (320     | )
|Postretirement benefits, net of deferred income tax of $49                                |        |             |        |                          |    |  |                           |        |   |                                            |   |         |                          |  |   | 84      |   |  |   | 84       |  
|Unrealized loss on available-for-sale securities, net of deferred income taxes of $10,755 |        |             |        |                          |    |  |                           |        |   |                                            |   |         |                          |  |   | (19,659 | ) |  |   | (19,659  | )
|                                                                                          |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  
|Total comprehensive income                                                                |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   | 51,290   |  
|                                                                                          |        |              |        |                          |     | 
|Dividends declared:                                                                       |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  
|Common stock, $0.10/share on February 1, 2008                                             |        |             |        |                          |    |  |                           |        |   |                                            |   | (9,478   | )                        |  |   |        |   |  |   | (9,478   | )
|Share-based compensation amortization                                                     |        |             |        |                          |    |  |                           | 3,746   |   |                                            |   |         |                          |  |   |        |   |  |   | 3,746    |  
|Exercise of employee stock options                                                        |        | 14,250       |        |                          |    |  |                           | 841     |   |                                            |   |         |                          |  |   |        |   |  |   | 841      |  
|Issuance of restricted stock and stock units                                              |        | 1,396        |        |                          |    |  |                           |        |   |                                            |   |         |                          |  |   |        |   |  |   |         |  
|Excess net tax benefit related to share-based compensation                                |        |             |        |                          |    |  |                           | 147     |   |                                            |   |         |                          |  |   |        |   |  |   | 147      |  
|                                                                                          |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  
|Balances at March 31, 2008 (Unaudited)                                                    |        | 94,784,988   |        | $                        | 948 |  | $                         | 832,961 |   |                                            | $ | 135,558  |                          |  | $ | 2,634   |   |  | $ | 972,101  |  
|                                                                                          |        |              |        |                          |     |  |                           |         |   |                                            |   |          |                          |  |   |         |   |  |   |          |  

See accompanying notes to the unaudited condensed consolidated financial
statements.



3



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##### Table of Contents

NYMEX HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)



|                                                                                  |  |                             |          |   |      |   |             |  
|--------------------------------------------------------------------------------- |  | --------------------------- | -------- | - | ---- | - | ----------- | -
|                                                                                  |  | Three Months EndedMarch 31, |         
|                                                                                  |  | 2008                        |          |   | 2007 |  
|Cash flows from operating activities                                              |  |                             |          |   |      |   |             |  
|Net income                                                                        |  | $                           | 71,185   |   |      | $ | 56,220      |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |                             |          |   |      |   |             |  
|Depreciation and amortization                                                     |  |                             | 3,994    |   |      |   | 4,067       |  
|Deferred grant credits                                                            |  |                             | (661     | ) |      |   | (661        | )
|Deferred rental income                                                            |  |                             | (169     | ) |      |   | (169        | )
|Deferred rent expense                                                             |  |                             | (48      | ) |      |   | (48         | )
|Deferred income taxes                                                             |  |                             | (1,457   | ) |      |   | (1,005      | )
|Excess tax benefit associated with exercise of stock options                      |  |                             | (147     | ) |      |   |            |  
|Allowance for doubtful accounts and credits                                       |  |                             | 158      |   |      |   | 262         |  
|Share-based compensation                                                          |  |                             | 3,746    |   |      |   | 2,304       |  
|Other, net                                                                        |  |                             | 2,337    |   |      |   | 870         |  
|Asset impairment and disposition losses                                           |  |                             |         |   |      |   | 34          |  
|Decrease (increase) in operating assets:                                          |  |                             |          |   |      |   |             |  
|Marketable securities                                                             |  |                             | (93,719  | ) |      |   | 4,037       |  
|Clearing and transaction fees receivable                                          |  |                             | (28,436  | ) |      |   | (12,680     | )
|Prepaid expenses                                                                  |  |                             | 158      |   |      |   | 638         |  
|Margin deposits and guaranty fund assets                                          |  |                             | 142,061  |   |      |   | 3,627       |  
|Other current assets                                                              |  |                             | 4,909    |   |      |   | (5,335      | )
|Increase (decrease) in operating liabilities:                                     |  |                             |          |   |      |   |             |  
|Accounts payable and accrued liabilities                                          |  |                             | 4,505    |   |      |   | (2,284      | )
|Accrued salaries and related liabilities                                          |  |                             | (7,895   | ) |      |   | (3,126      | )
|Margin deposits and guaranty fund liabilities                                     |  |                             | (142,061 | ) |      |   | (3,627      | )
|Income tax payable                                                                |  |                             | 54,176   |   |      |   | 30,066      |  
|Other current liabilities                                                         |  |                             | 12,291   |   |      |   | 7,595       |  
|Other liabilities                                                                 |  |                             | (516     | ) |      |   | 115         |  
|Members retirement obligation                                                    |  |                             | (43      | ) |      |   | (226        | )
|                                                                                  |  |                             |          |   |      |   |             |  
|Net cash provided by operating activities                                         |  |                             | 24,368   |   |      |   | 80,674      |  
|                                                                                  |  |                             |          |   |      |   |             |  
|Cash flows from investing activities                                              |  |                             |          |   |      |   |             |  
|Maturities and sales of securities lending program investments                    |  |                             | 579,296  |   |      |   | 31,077,818  |  
|Purchases of securities lending program investments                               |  |                             | (559,110 | ) |      |   | (30,790,122 | )
|Purchase of long-term investments                                                 |  |                             | (12,658  | ) |      |   | (79,850     | )
|Capital expenditures                                                              |  |                             | (4,008   | ) |      |   | (2,945      | )
|Decrease (increase) in other assets                                               |  |                             | 44       |   |      |   | (141        | )
|                                                                                  |  |                             |          |   |      |   |             |  
|Net cash provided by investing activities                                         |  |                             | 3,564    |   |      |   | 204,760     |  
|                                                                                  |  |                             |          |   |      |   |             |  
|Cash flows from financing activities                                              |  |                             |          |   |      |   |             |  
|Direct costs of initial public offering                                           |  |                             |         |   |      |   | (346        | )
|Proceeds from issuance of capital stock under employee stock plan                 |  |                             | 841      |   |      |   |            |  
|Excess tax benefit associated with exercise of stock options                      |  |                             | 147      |   |      |   |            |  
|Decrease in obligation to return collateral under securities lending program      |  |                             | (20,186  | ) |      |   | (287,696    | )
|Dividends paid                                                                    |  |                             | (9,399   | ) |      |   |            |  
|                                                                                  |  |                             |          |   |      |   |             |  
|Net cash used in financing activities                                             |  |                             | (28,597  | ) |      |   | (288,042    | )
|                                                                                  |  |                             |          |   |      |   |             |  
|Net decrease in cash and cash equivalents                                         |  |                             | (665     | ) |      |   | (2,608      | )
|Cash and cash equivalents, beginning of period                                    |  |                             | 3,296    |   |      |   | 18,631      |  
|                                                                                  |  |                             |          |   |      |   |             |  
|Cash and cash equivalents, end of period                                          |  | $                           | 2,631    |   |      | $ | 16,023      |  
|                                                                                  |  |                             |          |   |      |   |             |  

See accompanying notes to the unaudited condensed consolidated financial
statements.



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##### Table of Contents

NYMEX HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.    Basis of Presentation and Summary of Significant Accounting Policies

Nature of Business

NYMEX Holdings, Inc.
(NYMEX Holdings) was incorporated in 2000 as a stock corporation in Delaware, and is the successor to the New York Mercantile Exchange. On November 22, 2006, NYMEX Holdings completed an initial public offering (IPO) of
its common stock which is listed on the New York Stock Exchange under the symbol NMX. The two principal operating subsidiaries of NYMEX Holdings are New York Mercantile Exchange, Inc. (NYMEX Exchange or NYMEX
Division) and Commodity Exchange, Inc. (COMEX or COMEX Division), which is a wholly-owned subsidiary of NYMEX Exchange. Where appropriate, each division will be discussed separately, and collectively will be referred to
as the Exchange. NYMEX Holdings and its subsidiaries are collectively referred to as the Company.

The Company
exists principally to provide facilities to buy, sell and clear energy, precious and base metals, and soft commodities for future delivery under rules intended to protect the interests of market participants. The Company itself does not own
commodities, trade for its own account, or otherwise engage in market activities. The Company provides the physical facilities necessary to conduct an open outcry auction market, electronic trading systems, systems for the matching and clearing of
trades executed on the Exchange, and systems for the clearing of certain bilateral trades executed off-exchange in the over-the-counter (OTC) market. These services facilitate price discovery, hedging and liquidity in the energy and
metals markets. The liquidity that the Exchange and other centralized markets offer is achieved in large part because the traded contracts have standardized terms and the Companys clearinghouse mitigates counterparty performance risk.
Transactions executed on the Exchange mitigate the risk of counter-party default because the Companys clearinghouse acts as the counter-party to every trade. To manage the risk of financial nonperformance, the Exchange requires members to post
margin. Trading on the Exchange is regulated by the Commodity Futures Trading Commission.

Merger Agreement with CME Group Inc.

On March 17, 2008, the Company and CME Group Inc. (CME Group) entered into a definitive agreement (the Merger Agreement),
under which the Company would merge with and into CME Group, with CME Group continuing as the surviving company. Under the terms of the Merger Agreement, shareholders of the Company will receive total consideration equal to 0.1323 shares of CME
Group Class A common stock and $36.00 in cash for each share of the Companys common stock outstanding or, at the election of the Companys shareholder, can receive either cash or CME Group Class A common stock. Under certain
circumstances, if the Merger Agreement is terminated, the Company or CME Group may be required to pay the other a termination fee and other merger-related expenses. The merger is subject to a number of closing conditions, including, but not limited
to, (i) approval of the stockholders of the Company, (ii) approval of the stockholders of CME Group of (A) an amendment to CME Groups Charter and (B) the issuance of CME Groups shares in connection with the merger,
(iii) acceptance of the offer to purchase one hundred percent (100%) of the outstanding Class A memberships in NYMEX Exchange from the holders thereof for an aggregate purchase price not to exceed $500 million, or approximately
$612,000 per Class A membership in NYMEX Exchange and approval of an Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws of NYMEX Exchange, in each case, by holders of at least 75% of the outstanding Class A
memberships in NYMEX Exchange, (iv) effectiveness of a Form S-4 registration statement to be filed by CME Group, (v) receipt of certain regulatory approvals and (vi) receipt of an opinion that the merger will be treated as a tax-free
reorganization. The terms of certain contracts, employee benefit arrangements and debt agreements have provisions which could result in changes to the terms or settlement amounts upon a change in control of the Company.

Basis of Presentation

The accompanying
consolidated financial statements include the accounts of NYMEX Holdings and its wholly-owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



principles (GAAP). All significant intercompany transactions and balances are eliminated in consolidation. The Company consolidates subsidiaries
in which it holds, directly or indirectly, more than 50% of the voting rights or where it exercises control. The Company follows the equity method of accounting for joint ventures and investments in associated companies in which it holds between 20%
and 50% of the voting rights and/or has significant influence. The Companys equity in the net income and losses of these investments is reported in losses from unconsolidated investments in the accompanying consolidated statements of income.
The Company also evaluates its investments in all entities under Financial Accounting Standards Board (FASB) Interpretation No. 46R, Consolidation of Variable Interest Entities an interpretation of ARB No. 51
(FIN No. 46R) to determine if it has primary beneficial interests in any entities deemed to be variable interest entities (VIEs). As of March 31, 2008, the Company was not a beneficiary in a VIE. The accompanying
unaudited consolidated financial statements reflect all adjustments which are, in the opinion of the Companys management, necessary for a fair statement of the results for the periods presented.

Certain changes have been made to the condensed consolidated financial statements as of March 31, 2007 to conform to the current presentation.
Beginning December 31, 2007, the Company revised its classification of the net change in its marketable securities portfolio as an operating activity in the consolidated statements of cash flows, in accordance with Statement of Financial
Accounting Standards (SFAS) No. 102, Statement of Cash FlowsExemption of Certain Enterprises and Classification of Cash flows from Certain Securities Acquired for Resalean amendment of FASB Statement No. 95.
Previously, the net change in marketable securities was classified as an investing activity. In addition, the Company has also reclassified interest receivables from marketable securities to other current assets in the condensed consolidated balance
sheets as of December 31, 2007 to conform to the current presentation.

Pursuant to the rules and regulations of the United States
Securities and Exchange Commission (SEC), certain information and disclosures normally included in the notes to the annual financial statements have been omitted from these interim financial statements. The Company suggests that these
financial statements be read in conjunction with the audited financial statements and the notes included in the Companys most recent Annual Report on Form 10-K and any Current Reports on Form 8-K.

Significant Accounting Policies

The
Companys significant accounting policies are described in the notes to the December 31, 2007 audited consolidated financial statements included in its Annual Report on Form 10-K.

Recent Accounting Pronouncements

Effective
January 1, 2008, the Company adopted SFAS No. 157, Fair Value Measurements(SFAS No. 157), which defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures
about fair value measurements. SFAS No. 157 establishes a fair value hierarchy that distinguishes between independent observable inputs and unobservable inputs based on the best information available. SFAS No. 157 expands
disclosures about the use of fair value to measure assets and liabilities, the effect of these measurements on earnings for the period, and the inputs used to measure fair value. In February 2008, the FASB issued Staff Position
(FSP) FAS 157-1 to exclude SFAS No. 13, Accounting for Leases, and its related interpretive accounting pronouncements that address leasing transactions, from the scope of SFAS No. 157. In February 2008, the
FASB also issued FSP FAS 157-2 to allow entities to electively defer the effective date of SFAS No. 157 for nonfinancial assets and liabilities, except for those items recognized or disclosed at fair value on an annual or more frequently
recurring basis, until January 1, 2009. The Company will apply the fair value measurement provisions of SFAS No. 157 to its nonfinancial assets and liabilities effective January 1, 2009. The adoption of SFAS No. 157 had
no impact on retained earnings and resulted in expanded disclosures about the Companys financial instruments measured at fair value, as discussed in Note 3, Fair Value Measurements.



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



Effective January 1, 2008, the Company also adopted SFAS No. 159, The Fair Value Option
for Financial Assets and Financial Liabilities-Including an Amendment of FASB Statement No. 115 (SFAS No. 159), which permits entities to choose to measure many financial instruments and certain other items at fair value.
This statement also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities. After the initial adoption, the
election is made at the acquisition of a financial asset or financial liability and it may not be revoked. The Company applied the fair value option on certain time deposits and securities purchased under agreements to resell. The adoption of
SFAS No. 159 did not have a material impact on the Companys unaudited condensed consolidated financial statements.

Recent Accounting
Pronouncements and Changes, Not Yet Adopted

In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative
Instruments and Hedging Activities-an amendment of FASB Statement No. 133 (SFAS No. 161). SFAS No. 161 requires enhanced disclosure related to derivatives and hedging activities and thereby seeks to improve the
transparency of financial reporting. Under SFAS No. 161, entities are required to provide enhanced disclosures relating to: (a) how and why an entity uses derivative instruments; (b) how derivative instruments and related hedge items
are accounted for under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities (SFAS No. 133), and its related interpretations; and (c) how derivative instruments and related hedged items affect
an entitys financial position, financial performance, and cash flows. SFAS No. 161 must be applied prospectively to all derivative instruments and non-derivative instruments that are designated and qualify as hedging instruments and
related hedged items accounted for under SFAS No. 133 for all financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The Company is currently evaluating the
impact that SFAS No. 161 will have on its financial statements.

On December 4, 2007, the FASB issued SFAS No. 141 (Revised
2007), Business Combinations (SFAS No. 141(R)). SFAS No. 141(R) will significantly change the accounting for business combinations. Under SFAS No. 141(R), an acquiring entity will be required to recognize all the
assets acquired and liabilities assumed in a transaction at the acquisition date fair value with limited exceptions. SFAS No. 141(R) also includes a substantial number of new disclosure requirements. SFAS No. 141(R) applies prospectively
to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. SFAS No. 141(R) will only have an impact on the Companys financial
statements if it is involved in a business combination subsequent to 2008.

On December 4, 2007, the FASB issued SFAS No. 160,
Non-controlling Interests in Consolidated Financial Statements-an Amendment of ARB No. 51 (SFAS No. 160). SFAS No. 160 establishes new accounting and reporting standards for a non-controlling interest in a
subsidiary and for the deconsolidation of a subsidiary. Specifically, this statement requires the recognition of a non-controlling interest (minority interest) as equity in the consolidated financial statements separate from the parents
equity. The amount of net income attributable to the non-controlling interest will be included in consolidated net income on the face of the income statement. SFAS No. 160 clarifies that changes in a parents ownership interest in a
subsidiary that do not result in deconsolidation are equity transactions if the parent retains its controlling financial interest. In addition, this statement requires that a parent recognize a gain or loss in net income when a subsidiary is
deconsolidated. Such gain or loss will be measured using the fair value of the non-controlling equity investment on the deconsolidation date. SFAS No. 160 also includes expanded disclosure requirements regarding the interests of the parent and
its non-controlling interest. SFAS No. 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. The Company is currently evaluating the impact that SFAS No. 160 will
have on its financial statements.



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



NOTE 2.    Securities Lending

The Company entered into an agreement with JPMorgan Chase Bank, N.A. (JPMorgan) to participate in a securities lending program. Under this
program, JPMorgan, as agent, lends on an overnight basis a portion of the clearing members securities on deposit in the Companys margin deposits and guaranty fund (see Note 5) to third parties in return for cash collateral. JPMorgan, in
turn, invests the cash collateral in various investments on behalf of the Company in accordance with the programs investment guidelines. The Company receives the benefits, and bears the risks, of such investments. Interest expense is paid to
the third party for the cash collateral the Company controlled during the transaction, and a fee is paid to JPMorgan for administrating the transaction. Interest income and interest expense, as well as the fee paid to JPMorgan, are reported in the
non-operating income and expenses section on the Companys consolidated statements of income. Interest income, interest expense and the JPMorgan fees recognized under the securities lending program were $7.8 million, $5.6 million and $0.4
million, respectively for the first quarter in 2008 compared to $29.4 million, $28.8 million and $0.1 million, respectively for the first quarter in 2007.

At March 31, 2008, the fair value of the invested collateral was $819.6 million, comprised of $799.0 million in corporate debt securities and $20.6 million in other debt securities. The cost of the corporate debt
securities was $806.8 million, resulting in a gross unrealized loss of $7.8 million at March 31, 2008. The fair value of the other debt securities at March 31, 2008 approximated its cost. The unrealized losses on the corporate debt
securities were due to continued deterioration in the credit markets. The Company does not believe that these unrealized losses are other-than-temporary and, as such, are recorded in accumulated other comprehensive income, net of taxes on the
unaudited condensed consolidated balance sheet.

At December 31, 2007, the fair value of the invested collateral was $842.4 million,
comprised of $841.8 million in corporate debt securities and $0.6 million in other debt securities. The cost of the corporate debt securities was $846.9 million, resulting in a gross unrealized loss of $5.1 million at December 31, 2007. The
fair value of the other debt securities at December 31, 2007 approximated its cost. The unrealized losses on the corporate debt securities were due to significant deterioration in the credit markets.

At March 31, 2008, the fair value and cost of corporate debt securities with contractual maturities of one year or less was $506.3 million and
$510.1 million, respectively. The fair value and cost of corporate debt securities with contractual maturities of more than one year was $292.7 million and $296.7 million, respectively. At March 31, 2008, corporate debt securities in an
unrealized loss position for one year or less had a fair value of $600.5 million and an unrealized loss of $4.9 million. Corporate debt securities in an unrealized loss position for more than one year had a fair value of $198.5 million and an
unrealized loss of $2.9 million.

At December 31, 2007, the fair value and cost of corporate debt securities with contractual
maturities of one year or less was $287.6 million and $288.2 million, respectively. The fair value and amortized cost of corporate debt securities with contractual maturities of more than one year was $554.2 million and $558.7 million, respectively.
At December 31, 2007, corporate debt securities in an unrealized loss position for one year or less had a fair value of $791.1 million and an unrealized loss of $5.0 million. Corporate debt securities in an unrealized loss position for more
than one year had a fair value of $50.7 million and an unrealized loss of $0.1 million.

There were no sales during the first quarter of
2008. Proceeds from the sales of debt securities in this program were $430.6 million for the three months ended March 31, 2007. Realized gains in 2007 were nominal. The change in the net unrealized gain or loss on these available-for-sale securities
was not significant for any of the periods presented.



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



NOTE 3.    Fair Value Measurements

Effective January 1, 2008, the Company adopted SFAS No. 157, Fair Value Measurements(SFAS No. 157), for all financial instruments
accounted for at fair value. SFAS No. 157 establishes a consistent framework for measuring fair value and expands related disclosures. SFAS No. 157 requires, among other things, the use of valuation techniques that maximizes the use of observable
inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect market data obtained from sources independent of the Company, while unobservable inputs reflect the
Companys own market assumptions. These two types of inputs create the following fair value hierarchy:



| |  |  | Level 1Valuations based on quoted prices in active markets for identical assets or liabilities. The Companys Level 1 assets include short-term
investments in money market accounts, common equity and U.S. Government and agency securities that are traded in an active market.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 2Valuations based on quoted prices in markets that are not active, similar instruments in active markets or based on pricing models for which all
significant inputs are observable. The Companys Level 2 assets include municipal and certain debt securities that trade less frequently than exchange-traded instruments.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 3Valuations based on pricing models for which significant inputs are unobservable. The Companys Level 3 assets primarily include certain corporate
debt securities with limited market activity.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

If the inputs used to measure the financial assets fall within the
different levels described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

Assets valued based on Level 1 inputs utilize quoted market prices (unadjusted) in active markets. Assets whose fair values are determined by Level 2 inputs are based on pricing models using observable inputs such as
similar assets in active markets or other observable inputs such as interest rate curves, reference credit spreads and estimated pre-payment or default rates where applicable. Assets whose values are determined by Level 3 inputs are based on
unobservable inputs for the assets and include situations where there is little, if any, market activity for the asset.

The following
tables present the Companys assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.



|                                                 |                |                                                             |         |                                            |   |                                        |  |                           |        |  |   |        
|------------------------------------------------ | -------------- | ----------------------------------------------------------- | ------- | ------------------------------------------ | - | -------------------------------------- |  | ------------------------- | ------ |  | - | -------
|                                                 |                | Quoted Prices inActive Markets forIdentical Assets(Level 1) |         | Significant OtherObservableInputs(Level
2) |   | SignificantUnobservableInputs(Level 3) |  | Balanceas ofMarch 31,2008
|                                                 | (in thousands)
|Money market and time deposits                   |                | $                                                           | 39,633  |                                            | $ |                                       |  | $                         |       |  | $ | 39,633 
|U.S. government, agency and municipal securities |                |                                                             | 479,714 |                                            |   | 35,475                                 |  |                           |       |  |   | 515,189
|                                                 |                |                                                             |         |                                            |   |                                        |  |                           |        |  |   |        
|Marketable Securities                            |                |                                                             | 519,347 |                                            |   | 35,475                                 |  |                           |       |  |   | 554,822
|                                                 |                |                                                             |         |                                            |   |                                        |  |                           |        |  |   |        
|Equity securities1                               |                | $                                                           | 159,184 |                                            | $ |                                       |  | $                         |       |  | $ | 159,184
|                                                 |                |                                                             |         |                                            |   |                                        |  |                           |        |  |   |        
|Corporate debt securities                        |                |                                                             |        |                                            |   | 705,476                                |  |                           | 93,587 |  |   | 799,063
|Other debt securities                            |                |                                                             | 20,555  |                                            |   |                                       |  |                           |       |  |   | 20,555 
|                                                 |                |                                                             |         |                                            |   |                                        |  |                           |        |  |   |        
|Collateral from securities lending program       |                | $                                                           | 20,555  |                                            | $ | 705,476                                |  | $                         | 93,587 |  | $ | 819,618
|                                                 |                |                                                             |         |                                            |   |                                        |  |                           |        |  |   |        



|1 | These equity securities represent a portion of the long-term investments discussed in Note 7.
|- | ---------------------------------------------------------------------------------------------



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



The following table presents additional information about Level 3 assets measured at fair value on a
recurring basis.



|                          |  |                                |         |                         |   |         |                                        |  |   |                             |   |                                                                                             |   |        |  |   |  
|------------------------- |  | ------------------------------ | ------- | ----------------------- | - | ------- | -------------------------------------- |  | - | --------------------------- | - | ------------------------------------------------------------------------------------------- | - | ------ |  | - | -
|                          |  | Balance as ofDecember 31, 2007 |         | Transfers outof Level 3 |   |         | UnrealizedLosses inComprehensiveIncome |  |   | Balance as ofMarch 31, 2008 |   | Changes inUnrealized Gains (Losses)in Earnings forLevel 3 AssetsStill Held atMarch 31, 2008
|                          |  | (in thousands)                
|Corporate debt securities |  | $                              | 159,237 |                         | $ | (64,464 | )                                      |  | $ | (1,186                      | ) |                                                                                             | $ | 93,587 |  | $ | 
|                          |  |                                |         |                         |   |         |                                        |  |   |                             |   |                                                                                             |   |        |  |   |  

Transfers out represents existing assets that were previously categorized as a lower level and the
inputs to the model became observable during the current period.

NOTE 4.    Allowance for Doubtful Accounts and Credits

Clearing and transaction fees receivable are carried net of allowances for member credits, which are determined based upon expected
billing adjustments. Allowances for member credits were $1.0 million at March 31, 2008 and December 31, 2007. The Company believes the allowances are adequate to cover member credits. The Company also believes the likelihood of incurring
material losses due to non-collectibility is remote and, therefore, no allowance for doubtful accounts is necessary.

An allowance for
doubtful accounts is maintained for market data accounts receivable to cover potential non-collectible vendor receivables and credit adjustments by the market data vendor customers. This allowance was $536,000 and $404,000 at March 31, 2008 and
December 31, 2007, respectively, which the Company believes is sufficient to cover potential bad debts and subsequent credits. Accounts receivable for market data revenues, net of the allowance, totaled $8.2 million and $10.1 million at
March 31, 2008 and December 31, 2007, respectively, and are included in other current assets on the Companys condensed consolidated balance sheets.

The Company maintains a reserve for non-collectible receivables of other revenues in the amount of $601,000 and $624,000 at March 31, 2008 and December 31, 2007, respectively, to cover potential bad debts
and expected credits. Accounts receivable for other revenues, net of the allowance, totaled $305,000 and $226,000 at March 31, 2008 and December 31, 2007, respectively, and are included in other current assets on the Companys
condensed consolidated balance sheets.

NOTE 5.    Margin Deposits and Guaranty Funds

The Company is required, under the Commodity Exchange Act, to maintain separate accounts for cash and securities that are deposited by clearing members,
at banks approved by the Company, as margin for house and customer accounts. These margin deposits are used by members to meet their obligations to the Company for margin requirements on open futures and options positions, as well as delivery
obligations.

Each clearing member firm is required to maintain a security deposit, in the form of cash or U.S. Treasury securities with a
maturity of ten years or less or shares of certain approved money market mutual funds, of a minimum of $2.5 million in a fund known as a guaranty fund (the Guaranty Fund). The Guaranty Fund may be used for any loss sustained by the
Company as a result of the failure of a clearing member to discharge its obligations on the NYMEX Division or COMEX Division. Although there is one Guaranty Fund for both divisions, separate contribution amounts are calculated for each division.



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



Every member and non-member executing
transactions on the Companys divisions must be guaranteed by a clearing member and clear their transactions through the Companys clearinghouse. This requirement also applies to transactions conducted outside of the Exchange which clear
through NYMEX ClearPort® Clearing. Clearing members of the NYMEX Division and COMEX Division require their customers to maintain deposits in accordance with Company margin requirements.
Margin deposits and guaranty funds are posted by clearing members with the Companys clearinghouse. In the event of a clearing member default, the Company satisfies the clearing members obligations on the underlying contract by drawing on
the defaulting clearing members guaranty funds. If those resources are insufficient, the Company may fund the obligations from its own financial resources or draw on guaranty funds posted by non-defaulting clearing members. The Company also
maintains a $115 million default insurance policy. This insurance coverage is available to protect the Company and clearing members in the event that a default in excess of $250 million occurs.

The Company is entitled to earn interest on cash balances posted as margin deposits and guaranty funds. Such balances are included in the Companys
consolidated balance sheets, and are generally invested overnight in cash and securities purchased under agreements to resell.

The Company
is also entitled to lend a portion of the clearing members securities on deposit held by the Company for margin deposits and guaranty funds to third parties (see Note 2).

The following table sets forth margin deposits and guaranty fund balances held by the Company on behalf of clearing members at March 31, 2008 and
December 31, 2007 (in thousands):



|                                                        |                |                |               |                   |             |         |                |   |               |  |             |            |  |   |         |  |   |           
|------------------------------------------------------- | -------------- | -------------- | ------------- | ----------------- | ----------- | ------- | -------------- | - | ------------- |  | ----------- | ---------- |  | - | ------- |  | - | ----------
|                                                        |                | March 31, 2008 |               | December 31, 2007
|                                                        | MarginDeposits |                | GuarantyFunds |                   | Total Funds |         | MarginDeposits |   | GuarantyFunds |  | Total Funds
|Cash and securities earning interest for NYMEX Holdings |                |                |               |                   |             |         |                |   |               |  |             |            |  |   |         |  |   |           
|Cash                                                    |                | $              | 20,522        |                   | $           | 40      |                | $ | 20,562        |  | $           | 616        |  | $ | 14,042  |  | $ | 14,658    
|Securities purchased under agreements to resell         |                |                | 7,569         |                   |             |        |                |   | 7,569         |  |             | 155,534    |  |   |        |  |   | 155,534   
|                                                        |                |                |               |                   |             |         |                |   |               |  |             |            |  |   |         |  |   |           
|Total cash and securities                               |                |                | 28,091        |                   |             | 40      |                |   | 28,131        |  |             | 156,150    |  |   | 14,042  |  |   | 170,192   
|                                                        |                |                |               |                   |             |         |                |   |               |  |             |            |  |   |         |  |   |           
|Cash and securities earning interest for members        |                |                |               |                   |             |         |                |   |               |  |             |            |  |   |         |  |   |           
|Money market funds                                      |                |                | 10,971,826    |                   |             | 117,220 |                |   | 11,089,046    |  |             | 6,896,885  |  |   | 110,275 |  |   | 7,007,160 
|U.S. Treasuries                                         |                |                | 15,417,516    |                   |             | 177,445 |                |   | 15,594,961    |  |             | 12,193,040 |  |   | 174,988 |  |   | 12,368,028
|Letters of credit                                       |                |                | 3,170,167     |                   |             |        |                |   | 3,170,167     |  |             | 2,892,326  |  |   |        |  |   | 2,892,326 
|                                                        |                |                |               |                   |             |         |                |   |               |  |             |            |  |   |         |  |   |           
|Total cash and securities                               |                |                | 29,559,509    |                   |             | 294,665 |                |   | 29,854,174    |  |             | 21,982,251 |  |   | 285,263 |  |   | 22,267,514
|                                                        |                |                |               |                   |             |         |                |   |               |  |             |            |  |   |         |  |   |           
|Total funds                                             |                | $              | 29,587,600    |                   | $           | 294,705 |                | $ | 29,882,305    |  | $           | 22,138,401 |  | $ | 299,305 |  | $ | 22,437,706
|                                                        |                |                |               |                   |             |         |                |   |               |  |             |            |  |   |         |  |   |           

NOTE 6.    Goodwill and Indefinite-Lived Intangible Asset

In 1994, NYMEX Division acquired the equity interests, but not the trading rights and protections, of the owners of COMEX Division memberships. As part of
the agreement for this acquisition, a $10 million payment would be made to the owners of COMEX Division memberships in the event the Company consummated an



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initial public offering (Special IPO Payment). Upon the Companys successful completion of its initial public offering on November 22,
2006, the Special IPO Payment was made to owners of COMEX Division memberships of record as of November 16, 2006. This payment was considered additional consideration to the original purchase price of the COMEX equity interests and, therefore,
was recorded as additional goodwill on the Companys condensed consolidated balance sheets. Goodwill amounted to $26.3 million at March 31, 2008 and December 31, 2007.

On November 20, 2006, the owners of COMEX Division memberships voted on and approved an agreement with the Company in which their trading rights and
protections were terminated in exchange for certain new trading rights and protections. In addition, each of the 772 owners of COMEX Division memberships received 8,400 shares of the Companys common stock for a total consideration of
6,484,800 shares. The value assigned to the acquired trading rights was based on a measurement date of September 20, 2006, the date the agreement was entered into. The average price of the Companys common stock for the two days before and
after the measurement date was used to value the trading rights at approximately $280.8 million. Included in the value are direct costs the Company incurred in preparing and negotiating such agreement. The Company considered the guidance set forth
in SFAS No. 142, Goodwill and Other Intangible Assets,in determining that the acquired trading rights have an indefinite useful life.

NOTE
7.    Long-Term Investments

Long-term investments are comprised principally of the Companys investments in
DME Holdings, Montréal Exchange, Optionable and IMAREX as described below:

In June 2005, the Company and Tatweer Dubai LLC
(Tatweer), a subsidiary of Dubai Holding LLC, entered into a joint venture to develop the Middle Easts first energy futures exchange. As part of this venture, DME Holdings Limited (DME Holdings) was incorporated as a
limited company under the laws of Bermuda. DME Holdings is the indirect owner of Dubai Mercantile Exchange Limited (the DME), a limited liability company formed under the laws of the Dubai International Financial Centre
(DIFC), a financial free zone designed to promote financial services within the United Arab Emirates. On June 1, 2007, DME commenced offering sour crude and fuel oil products for trading. DME is regulated by the Dubai Financial
Services Authority, a regulatory body established within the DIFC. The Company is required to contribute capital to the joint venture in an aggregate amount of $9.8 million over a five-year period, contingent upon the DMEs achievement of
certain agreed upon performance targets. At March 31, 2008, the Companys capital contributions made to the joint venture totaled $8.0 million.

In May 2007, DME Holdings entered into a shareholders agreement with the Oman Investment Fund (the Shareholders Agreement) to ultimately sell a 31.58% equity interest in DME Holdings. In conjunction with
this agreement, the Company and Tatweer loaned $13.7 million each to DME Holdings in order to meet the financial resource requirements of the regulatory authorities. Upon the consummation of the restructuring of the investment pursuant to the
Shareholders Agreement, the Company will ultimately own a 32.5% economic interest and a 34.21% voting interest in DME Holdings; the DME has begun implementing a plan to provide equity participation to market makers and other market participants
which may result in further dilution of the Companys economic interest. Upon consummation of the Shareholders Agreement, the Company reevaluated its investment in DME under FIN No. 46R and determined that DME was no longer a VIE as it
meets the business scope exception. For the three months ended March 31, 2008 and 2007, the Company incurred losses, attributable to its investment, of approximately $2.1 million and $1.6 million, respectively. These losses are recorded in
losses from unconsolidated investments on the condensed consolidated statements of income. As of March 31, 2008, DME repaid the Company approximately $6.4 million of the outstanding loan balance, including interest.



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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



On March 13, 2007, the Company entered into a Private Placement Subscription Agreement with
Bourse de Montréal, Inc., a Canadian corporation (Montréal Exchange) whereby the Company purchased approximately 3.1 million common shares of Montréal Exchange for approximately $78 million in cash. The shares
purchased represented approximately 10% of the total outstanding shares of Montréal Exchange immediately after the execution of the Private Placement Subscription Agreement, which was consummated on March 23, 2007. The Company accounts
for this investment under the cost method as it cannot exercise significant influence over the operating and financial policies of Montréal Exchange. Subsequently, on March 27, 2007, Montréal Exchange commenced trading on the
Toronto Stock Exchange under the symbol MXX. Following the public offering of the Montréal Exchange, the Company reports its investment in Montréal Exchange as available-for-sale in accordance with SFAS No. 115. On
February 13, 2008, the shareholders of Montréal Exchange approved a business combination with TSX Group Inc. to create a new integrated exchange group. On May 1, 2008, this combination was completed and the Company, in turn,
received approximately $49.5 million in cash and 1.4 million shares of the new integrated exchange groups common stock valued at approximately $63.1 million on such date. At March 31, 2008, the fair value of the securities of
Montréal Exchange was approximately $100.2 million.

In April 2007, the Company entered into a Stock and Warrant Purchase Agreement
with Optionable, Inc. (Optionable), an energy derivatives broker, whereby the Company purchased 19% of Optionables outstanding common shares on a fully diluted basis for approximately $28.9 million in cash. The warrant entitles the
Company to purchase from Optionable common shares so as to increase the Companys ownership to an amount not to exceed 40% of Optionables outstanding common shares on a fully diluted basis. The shares of Optionable are considered
available-for-sale securities in accordance with SFAS No. 115. Following a precipitous fall in Optionables stock price during May 2007 due to the loss of a major customer and resignation of its chief executive officer, among other
matters, the Company evaluated its investment in Optionable for other-than-temporary impairment. In evaluating this investment, the Company took into consideration the severity of the stock price decline, the expected period of time necessary for a
recovery to occur and the Companys ability to retain its investment during the period anticipated for recovery in fair value, if any. In analyzing Optionables financial condition and following the guidance in SFAS No. 115 and EITF
03-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments, the Company determined the impairment in its Optionable investment as other-than-temporary and recorded a pre-tax charge of approximately $26
million in June 2007. At March 31, 2008, the fair value of the securities was approximately $0.5 million.

In November 2007, the
Company acquired approximately 15% of IMAREX ASA (IMAREX) for $52 million in cash. Subsequent acquisitions of IMAREX shares, for $2 million in cash, brought the Companys total ownership to approximately 16% at December 31,
2007. In February 2008, the Company participated in a private placement of shares newly issued by IMAREX (in connection with IMAREXs acquisition of Spectron Group plc) for approximately $11 million in cash, following which the Companys
ownership in IMAREX increased to approximately 18%. In March 2008, IMAREX consummated a further offering of its shares, in which the Company did not participate, resulting in a decrease of the Companys total ownership in IMAREX to
approximately 15%. IMAREX, headquartered in Oslo, Norway, operates a hybrid model of electronic trading and voice brokerage and offers research, transaction and settlement services for financial derivatives based on oceangoing freight, airborne
emissions, farmed salmon, electric power and heavy fuel oil. The shares of IMAREX are reported as available-for-sale securities in accordance with SFAS No. 115. At March 31, 2008, the fair value of the securities was approximately $58.4
million.

NOTE 8.    Long-Term Debt

The Company issued long-term debt totaling $100 million during 1996 and 1997 to provide completion financing for the Companys trading facility and headquarters. This issuance contained three series, each with
different maturities, interest rates and repayment schedules. Series A notes require annual principal repayments



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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



from 2001 to 2010, and a final payment of principal in 2011. Series B notes require annual principal repayments from 2011 to 2020, and a final payment of
principal in 2021. Series C notes require annual principal repayments from 2022 to 2025, and a final payment of principal in 2026. The notes represent senior unsecured obligations of the Company and are not secured by the Companys headquarters
facility, the Companys interest therein, or any other collateral. The notes are subject to a prepayment penalty in the event they are paid off prior to their scheduled maturities. The Company believes that any economic benefit derived from
early redemption of these notes would be offset by the redemption penalty. These notes place certain limitations on the Companys ability to incur additional indebtedness. At March 31, 2008 and December 31, 2007, the notes payable
balance, including the current portion, was $80.3 million.

NOTE 9.    Earnings per Share

The calculation of earnings per common share for the period ended March 31, 2008 and 2007 is as follows (in thousands, except for share data):



|                                            |  |                             |            |      |   |           
|------------------------------------------- |  | --------------------------- | ---------- | ---- | - | ----------
|                                            |  | Three Months EndedMarch 31,
|                                            |  | 2008                        |            | 2007
|Net income                                  |  | $                           | 71,185     |      | $ | 56,220    
|                                            |  |                             |            |      |   |           
|Weighted average common shares outstanding: |  |                             |            |      |   |           
|Basic                                       |  |                             | 94,780,000 |      |   | 94,450,000
|Effect of stock options                     |  |                             | 146,000    |      |   | 293,000   
|Effect of restricted stock units            |  |                             | 38,000     |      |   | 65,000    
|                                            |  |                             |            |      |   |           
|Diluted                                     |  |                             | 94,964,000 |      |   | 94,808,000
|                                            |  |                             |            |      |   |           
|Earnings per Share:                         |  |                             |            |      |   |           
|Basic                                       |  | $                           | 0.75       |      | $ | 0.60      
|Diluted                                     |  | $                           | 0.75       |      | $ | 0.59      

NOTE 10.    Members Retirement Plan and Benefits

The Company maintains a retirement and benefit plan under the COMEX Members Recognition and Retention Plan (MRRP). This plan provides
benefits to certain members of the COMEX Division based on long-term membership, and participation is limited to individuals who were COMEX Division members prior to the Companys acquisition of COMEX in 1994. No new participants were permitted
into the plan after the date of the acquisition. The annual benefit payments are $12,500 ($2,000 for options members) for ten years for vested participants. Under the terms of the COMEX MRRP, the Company is required to fund the plan with a minimum
annual contribution of $400,000 until it is fully funded. The Company funded the plan with a contribution of $800,000 in 2007 and expects to do so again in 2008. Based on continued funding of $800,000 per year, and certain actuarial assumptions, the
Company expects the plan to be fully funded in 2019. The annual contribution may be reduced if actuarial assumptions indicate that full funding can be achieved without making the entire funding contributions indicated above. Corporate contributions
are charged against current operations. All benefits to be paid under the COMEX MRRP shall be based upon reasonable actuarial assumptions which, in turn, are based upon the amounts that are available and are expected to be available to pay benefits,
except that the benefits paid to any individual will not exceed the amounts stated above. Quarterly distributions from the COMEX MRRP began in the second quarter of 2002. Subject to the foregoing, the board of directors of the Company reserves the
right to amend or terminate the COMEX MRRP upon an affirmative vote of 60% of the eligible COMEX Division plan participants.



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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



NOTE 11.    Direct Transaction Costs

The Company incurs various costs to support its trading floor and clearinghouse. These costs include fees paid to third-party brokers for submitting
individually negotiated off-exchange trades to the Exchange for the clearing of specified products. These costs also include service fees paid to the Chicago Mercantile Exchange Inc. (CME) (as described in the following paragraph),
license and royalty fees paid to third-party vendors for the use of their settlement prices, and trading floor supplies needed for the Companys open outcry venue.

In 2006, NYMEX Exchange entered into a definitive technology services agreement (the CME
Agreement) with CME, a wholly-owned subsidiary of CME Group, to become the exclusive electronic trading service provider for NYMEX Exchanges energy futures and options contracts and for metals products listed on its COMEX Division. The
CME Agreement has a ten-year term from the launch date with rolling three-year extensions unless, among other reasons, (i) either party elects not to renew the CME Agreement upon written notice prior to the beginning of the applicable renewal
term, or (ii) either party elects to terminate the CME Agreement between the fifth and the sixth year anniversary of the first launch date upon written notice and payment of a termination fee. Pursuant to the CME Agreement, NYMEX Exchange will
pay to CME a minimum annual payment or per trade fees based on average daily volume, whichever is greater. In addition, pursuant to the CME Agreement, if the Company acquires or merges with an entity, that at the time of such acquisition or merger,
operates a trading execution system for futures or futures options products (or off-exchange look-alike versions of such products), electronic trading of such products shall be transitioned to the CME Globex® electronic trading platform (CME Globex) within two years.

For the three months ended
March 31, 2008 and 2007, the Company incurred fees of $17.0 million and $12.3 million, respectively, under the terms of the CME Agreement, which are included in direct transaction costs on the consolidated statements of income.

NOTE 12.    Pension and Other Benefit Plans

The Company sponsors various defined contribution and postretirement plans to qualifying employees. The Company also provides postemployment benefits to eligible employees after employment but before retirement.

Savings Plan

The Company
sponsors a defined contribution plan (the 401K Plan) that incorporates a deferred salary arrangement under Section 401(k) of the Internal Revenue Code to all eligible domestic employees. The Company matches employee contributions up
to a maximum of 3% of salary. In addition, the Company makes annual contributions ranging from 2% to 7% based upon tenure for each eligible 401K Plan member.

Deferred Compensation Plan

The Company has a nonqualified deferred compensation plan (the Deferred Plan)
for key employees to permit them to defer receipt of current compensation. The Company may provide a matching and a regular year-end contribution to the Deferred Plan. Matching and year-end contribution percentages follow the same guidelines as the
Companys defined contribution plan. The Deferred Plan is not intended to be a qualified plan under the provisions of the Internal Revenue Code. It is intended to be unfunded and, therefore, all compensation deferred under the Deferred Plan is
held by the Company and commingled with its general assets. The participating employees are general creditors of the Company with respect to these benefits. The Company has the right to amend, modify, or terminate the Deferred Plan at any time. At
March 31, 2008 and December 31, 2007, deferred compensation amounted to $2.9 million and $2.8 million, respectively, and is included in accrued salaries and related liabilities on the condensed consolidated balance sheets.



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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



Postemployment Plan

The Company offers various postemployment benefits to employees after employment but before retirement. These benefits are paid in accordance with the Companys established postemployment benefit practices and
policies. Postemployment benefits include both short-term disability income benefits and long-term disability related health benefits. The Company accrues for these future postemployment benefits, which are funded on a pay-as-you-go basis. The
Companys postemployment benefits liabilities at March 31, 2008 and December 31, 2007 were $0.3 million and $0.8 million, respectively.

Postretirement Plan

The Companys postretirement benefit costs are developed from actuarial valuations.
Inherent in these valuations are key assumptions, including the discount rate and health care cost trend rate. Material changes in its postretirement benefit costs may occur in the future due to changes in these assumptions, changes in the number of
plan participants and changes in the level of benefits provided. The Company provides certain health care and life insurance benefit plans for qualifying retired employees. Substantially all of the Companys employees may become eligible for
these benefits if they reach specified age and years of service criteria while working for the Company. The benefits are provided through certain insurance companies. The Company expects to fund its share of such benefit costs principally on a
pay-as-you-go basis. Accrued postretirement benefit costs are included in other non-current liabilities on the condensed consolidated balance sheets.

The net periodic benefit cost for the Companys defined benefit retirement plans and other benefit plans for the first quarter of 2008 and 2007 included the following components (in thousands):



|                                             |      |                             |     |      |  |   |     |  
|-------------------------------------------- | ---- | --------------------------- | --- | ---- |  | - | --- | -
|                                             |      | Three Months EndedMarch 31, |    
|                                             | 2008 |                             |     | 2007 | 
|Service costs                                |      | $                           | 90  |      |  | $ | 110 |  
|Interest costs                               |      |                             | 102 |      |  |   | 108 |  
|Amortization of prior service costs          |      |                             | (11 | )    |  |   | (14 | )
|Amortization of net loss                     |      |                             |    |      |  |   | 16  |  
|                                             |      |                             |     |      |  |   |     |  
|Total net period postretirement benefit cost |      | $                           | 181 |      |  | $ | 220 |  
|                                             |      |                             |     |      |  |   |     |  

NOTE 13.    Lease Termination Costs

In June 2006, the Company ceased its floor trading operations of its London-based exchange. As a result, the Company incurred lease termination costs of
approximately $1.5 million during the first and second quarters of 2006 on various operating leases it had contracted to support its floor trading operations. In September 2006, the Company consolidated its London offices, and in doing so vacated
its location at 131 Finsbury Pavement. The Company began negotiations with the landlord during September 2006 to buy out the remaining lease term. As such, the Company recorded a charge of approximately $1.9 million in the third quarter of 2006 for
the estimated amount to be paid. This charge was recorded in occupancy and equipment on the Companys condensed consolidated statements of income.



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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



The following tables summarize the activity related to the various London exchange lease terminations
in accordance with SFAS No. 146, Accounting for Costs Associated with Exit or Disposal Activities (in thousands):



|                                                 |  |                       |       |  |                              |                       |   |     |  
|------------------------------------------------ |  | --------------------- | ----- |  | ---------------------------- | --------------------- | - | --- | -
|                                                 |  | LeaseTerminationCosts |       |  |                              | LeaseTerminationCosts |  
|Total expected to be incurred                    |  | $                     | 3,426 |  | Liability at January 1, 2008 |                       | $ | 878 |  
|                                                 |  |                       |       |  |                              |                       |   |     |  
|Charges incurred in 2006                         |  | $                     | 3,426 |  | Charges                      |                       |   |    |  
|Charges incurred in 2007                         |  |                       |      |  | Payments                     |                       |   | (40 | )
|Charges incurred in 2008                         |  |                       |      |  |                              |                       |   |     |  
|                                                 |  |                       |       |  |                              |                       |   |     |  
|Cumulative charges incurred as of March 31, 2008 |  | $                     | 3,426 |  | Liability at March 31, 2008  |                       | $ | 838 |  
|                                                 |  |                       |       |  |                              |                       |   |     |  

NOTE 14.    Common Stock

At March 31, 2008, the composition of common stock was as follows:



|                        |  |             |  |            |  |             
|----------------------- |  | ----------- |  | ---------- |  | ------------
|                        |  | Authorized1 |  | Issued     |  | Outstanding2
|Common Stock3           |  | 101,984,800 |  | 22,069,288 |  | 22,060,439  
|Series A-1 Common Stock |  | 24,480,000  |  | 19,806,000 |  | 19,806,000  
|Series A-2 Common Stock |  | 24,480,000  |  | 23,310,000 |  | 23,310,000  
|Series A-3 Common Stock |  | 24,480,000  |  | 23,411,000 |  | 23,411,000  
|Series B-1 Common Stock |  | 2,161,600   |  | 1,974,000  |  | 1,974,000   
|Series B-2 Common Stock |  | 2,161,600   |  | 2,099,300  |  | 2,099,300   
|Series B-3 Common Stock |  | 2,161,600   |  | 2,115,400  |  | 1,325,800   
|                        |  |             |  |            |  |             
|                        |  | 181,909,600 |  | 94,784,988 |  | 93,986,539  
|                        |  |             |  |            |  |             



|1 | Common stock authorized consists of: (i) 73,440,000 shares reserved for issuance upon conversion of the Series A-1,
Series A-2 and Series A-3 Common Stock; (ii) 8,160,000 shares authorized and issued for the conversion of the Companys preferred stock; (iii) 4,300,000 shares reserved for issuance under the Companys 2006 Long-Term Incentive
Plan; (iv) 9,600,000 shares authorized in connection with the IPO of which 6,365,000 were issued; and (v) 6,484,800 shares reserved for issuance upon conversion of the Series B-1, Series B-2 and Series B-3 Common Stock.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2 | Series B-1, Series B-2 and Series B-3 Common Stock were issued as consideration for the trading rights the Company
acquired from the owners of COMEX Division memberships (see Note 6). In accordance with the terms of the agreement, each of the 772 owners of COMEX Division memberships was to receive 8,400 shares of the Companys common stock (2,800 Series
B-1, 2,800 Series B-2, and 2,800 Series B-3 shares) and was able to individually elect the timing of the receipt of those shares. The election choices included the receipt of: (i) all shares on the date the agreement was consummated (November
20, 2006); (ii) all shares on January 2, 2007; or (iii) in one-third increments on the 180th, 360thand 540thday following the date the Companys Registration Statement on
Form S-1, as filed with the SEC, became effective (November 16, 2006). As a result of the election by the 772 owners of COMEX Division memberships: 204 elected to receive their shares, totaling 1,713,600 shares, on November 20, 2006; 286
elected to receive their shares, totaling 2,402,400 shares, on January 2, 2007; and 282 elected to receive their shares, totaling 2,368,800 shares, in one-third increments as described above.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3 | The difference between the Common Stock issued and outstanding represents stock awards that have vested to non-employee
directors of the Companys board, which were granted under the 2006 Long-Term
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | Incentive Plan. In accordance with each non-employee directors award, shares that are vested are unable to be sold until six months after the director
is no longer serving on the board, therefore, the vested shares are considered to be issued but not outstanding.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NOTE
15.    Supplemental Disclosures of Cash Flow Information

Supplemental disclosures of cash flow information for the
three months ended March 31, 2008 and 2007 are as follows:



|                                                        |  |                             |         |   |      |   |       
|------------------------------------------------------- |  | --------------------------- | ------- | - | ---- | - | ------
|                                                        |  | Three Months EndedMarch 31,
|                                                        |  | 2008                        |         |   | 2007
|                                                        |  | (in thousands)             
|Cash paid for:                                          |  |                             |         |   |      |   |       
|Interest                                                |  | $                           | 5,619   |   |      | $ | 28,750
|                                                        |  |                             |         |   |      |   |       
|Income taxes                                            |  | $                           | 7,800   |   |      | $ | 14,400
|                                                        |  |                             |         |   |      |   |       
|Non-cash investing and financing activities:            |  |                             |         |   |      |   |       
|Unrealized (loss) gain on available-for-sale securities |  | $                           | (29,797 | ) |      | $ | 33,437
|                                                        |  |                             |         |   |      |   |       

NOTE 16.    Share-Based Compensation

The Companys 2006 Omnibus Long-Term Incentive Plan (the 2006 LTIP) was approved by its board of directors on July 13, 2006 and by
its stockholders on October 12, 2006. The 2006 LTIP provides for the granting of incentive stock options, non-qualified stock options (NQSOs), restricted stock, and restricted stock unit awards (RSUs) to employees and
directors for up to 4.3 million shares of common stock. The Company believes that such awards better align the interest of its employees with those of its stockholders. The exercise price for all stock options is not less than 100% of the fair
market value of the common stock on the date of grant. Notwithstanding the foregoing, the fair market value of a share of common stock for purposes of determining awards with a grant date as of the Companys initial public offering was set in
the final prospectus for such initial public offering. No monetary payment is required as a condition of receiving a restricted stock or restricted stock unit award, since the consideration for the award shall be services actually rendered to the
Company or for the Companys benefit. All share-based compensation currently awarded vest over a varying period of up to four years from the date of grant. NQSOs currently awarded have a maximum term of 8 years.

On January 9, 2008, the Company granted to its employees 376,100 NQSOs and 49,100 RSUs. The Company follows fair value accounting for share-based
compensation as required under SFAS No. 123 (Revised), Share-Based Payment (SFAS No. 123R). SFAS No. 123R requires recognition of compensation costs related to share-based payments over the period that an employee
provides services in exchange for the award. The fair value of the NQSOs awards granted on January 9, 2008 was based on the Black-Scholes option-pricing model using the following assumptions:



|                                           |  |   |           |  
|------------------------------------------ |  | - | --------- | -
|For the three months ended March 31, 2008: |  |   |          
|Risk-free interest rate                    |  |   | 3.08      | %
|Expected volatility                        |  |   | 34.69     | %
|Expected option life                       |  |   | 4.5 years |  
|Dividend yield                             |  |   | 0.3       | %
|Weighted-average grant-date fair value     |  | $ | 37.83     |  



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



The risk-free interest rate was based on the implied yields of U.S. Treasury Notes with a maturity
equal to the NQSOs expected life at the time of grant. Expected volatility was based on the volatility of stock prices of companies within the same industry as the Company. The expected NQSOs life was determined based on various factors including
employee turnover rate, the vesting period of the NQSOs and information received from third-party consultants.

Share-based compensation
expense was approximately $3.7 million and $2.3 million for the three months ended March 31, 2008 and 2007, respectively, and is recorded in salaries and employee benefits on the condensed consolidated statements of income.

SFAS No. 123R additionally requires companies to estimate forfeiture rates at the time of grant and to revise these estimates in subsequent periods
if actual forfeiture rates differ from those estimates. The Company applied the forfeiture rate to the unvested portion of the NQSOs valuation and performed a true-up for the actual forfeited amount of the valuation on a quarterly basis. As of
March 31, 2008, the current forfeiture rate for the non-vested NQSOs and RSUs was 8.7% and 11.6%, respectively, as compared to 9.8% and 12.3%, respectively, at December 31, 2007.

The following table summarizes the changes in NQSOs activities under the 2006 LTIP for the three months ended March 31, 2008:



|                                           |  |                      |  |                                |       
|------------------------------------------ |  | -------------------- |  | ------------------------------ | ------
|                                           |  | Shares(in thousands) |  | Weighted averageexercise price
|Outstanding at the beginning of the period |  | 1,066.8              |  | $                              | 62.83 
|Granted                                    |  | 376.1                |  |                                | 118.97
|Exercised                                  |  | 14.2                 |  |                                | 59.00 
|Forfeited or expired                       |  | 1.5                  |  |                                | 59.00 
|                                           |  |                      |  |                                |       
|Outstanding at the end of the period       |  | 1,427.2              |  | $                              | 77.67 
|                                           |  |                      |  |                                |       
|Exercisable at the end of the period       |  | 44.9                 |  |                                | 59.00 
|                                           |  |                      |  |                                |       

The following table summarizes the changes in RSUs under the 2006 LTIP for the three months ended
March 31, 2008:



|                                         |  |                |  |                                      |         
|---------------------------------------- |  | -------------- |  | ------------------------------------ | --------
|                                         |  | Shares         |  | Weighted averageGrant-DateFair Value
|                                         |  | (in thousands)
|Nonvested at the beginning of the period |  | 140.5          |  | $                                    | 8,783.7 
|Granted                                  |  | 49.1           |  |                                      | 5,841.4 
|Vested                                   |  | 1.4            |  |                                      | 169.0   
|Forfeited or expired                     |  | 0.7            |  |                                      | 48.8    
|                                         |  |                |  |                                      |         
|Nonvested at the end of the period       |  | 187.5          |  | $                                    | 14,407.3
|                                         |  |                |  |                                      |         

At March 31, 2008, there was $43.3 million of total unrecognized compensation cost related to
non-vested share-based compensation arrangements granted under the 2006 LTIP. This cost is expected to be recognized over the future vesting period.



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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



NOTE 17.    Segment Reporting

The Company considers operating results for two business segments: Open Outcry and Electronic
Trading and Clearing. Open Outcry is the trading and clearing of NYMEX Division and COMEX Division futures and options contracts on the trading floors of the Exchange. Electronic Trading and Clearing consists of NYMEX ClearPort® Trading and NYMEX ClearPort® Clearing and trading on the CME Globex. The Company reports revenue on a segment basis. Total revenues
presented for each segment include clearing and transaction fees related to such segment and a pro rated portion of market data fees. Other revenues are attributed entirely to Open Outcry. Direct transaction costs are allocated directly to the
segment they are incurred for. Depreciation and amortization and other operating expenses are allocated directly to the segment they pertain to, where practicable, with the balance of these expenses allocated based on the proportion of operating
revenues, net of direct transaction costs, attributed to each segment. Non-operating income and expenses, as well as expenses incurred in connection with the Merger Agreement, are allocated entirely to Corporate/Other.

Financial information relating to these business segments is set forth below (in thousands):



|                                                          |            |                                   |                             |  |                  |         |  |       |        |   |  |   |        
|--------------------------------------------------------- | ---------- | --------------------------------- | --------------------------- |  | ---------------- | ------- |  | ----- | ------ | - |  | - | -------
|                                                          |            | Three Months Ended March 31, 2008
|                                                          | OpenOutcry |                                   | ElectronicTrading &Clearing |  | Corporate /Other |         |  | Total
|Total operating revenues                                  |            | $                                 | 49,018                      |  | $                | 159,857 |  | $     |       |   |  | $ | 208,875
|Direct transaction costs                                  |            |                                   | 333                         |  |                  | 27,750  |  |       |       |   |  |   | 28,083 
|Depreciation and amortization                             |            |                                   | 1,628                       |  |                  | 1,830   |  |       |       |   |  |   | 3,458  
|Other operating expenses                                  |            |                                   | 15,184                      |  |                  | 21,087  |  |       | 8,175  |   |  |   | 44,446 
|                                                          |            |                                   |                             |  |                  |         |  |       |        |   |  |   |        
|Operating income (loss)                                   |            |                                   | 31,873                      |  |                  | 109,190 |  |       | (8,175 | ) |  |   | 132,888
|Non-operating income                                      |            |                                   |                            |  |                  |        |  |       | 1,538  |   |  |   | 1,538  
|                                                          |            |                                   |                             |  |                  |         |  |       |        |   |  |   |        
|Income (loss) before provision (benefit) for income taxes |            |                                   | 31,873                      |  |                  | 109,190 |  |       | (6,637 | ) |  |   | 134,426
|Provision (benefit) for income taxes                      |            |                                   | 14,301                      |  |                  | 48,994  |  |       | (54    | ) |  |   | 63,241 
|                                                          |            |                                   |                             |  |                  |         |  |       |        |   |  |   |        
|Net income (loss)                                         |            | $                                 | 17,572                      |  | $                | 60,196  |  | $     | (6,583 | ) |  | $ | 71,185 
|                                                          |            |                                   |                             |  |                  |         |  |       |        |   |  |   |        



|                                         |            |                                   |                             |  |                  |         |       |   |       |  |   |        
|---------------------------------------- | ---------- | --------------------------------- | --------------------------- |  | ---------------- | ------- | ----- | - | ----- |  | - | -------
|                                         |            | Three Months Ended March 31, 2007
|                                         | OpenOutcry |                                   | ElectronicTrading &Clearing |  | Corporate /Other |         | Total
|Total operating revenues                 |            | $                                 | 46,128                      |  | $                | 118,098 |       | $ |      |  | $ | 164,226
|Direct transaction costs                 |            |                                   |                            |  |                  | 24,102  |       |   |      |  |   | 24,102 
|Depreciation and amortization            |            |                                   | 1,826                       |  |                  | 1,705   |       |   |      |  |   | 3,531  
|Other operating expenses                 |            |                                   | 20,052                      |  |                  | 20,829  |       |   |      |  |   | 40,881 
|                                         |            |                                   |                             |  |                  |         |       |   |       |  |   |        
|Operating income                         |            |                                   | 24,250                      |  |                  | 71,462  |       |   |      |  |   | 95,712 
|Non-operating income                     |            |                                   |                            |  |                  |        |       |   | 3,969 |  |   | 3,969  
|                                         |            |                                   |                             |  |                  |         |       |   |       |  |   |        
|Income before provision for income taxes |            |                                   | 24,250                      |  |                  | 71,462  |       |   | 3,969 |  |   | 99,681 
|Provision for income taxes               |            |                                   | 10,670                      |  |                  | 31,443  |       |   | 1,348 |  |   | 43,461 
|                                         |            |                                   |                             |  |                  |         |       |   |       |  |   |        
|Net income                               |            | $                                 | 13,580                      |  | $                | 40,019  |       | $ | 2,621 |  | $ | 56,220 
|                                         |            |                                   |                             |  |                  |         |       |   |       |  |   |        

The Company does not account for, and does not report to management, its assets (other than
goodwill and other intangible assets for SFAS No. 142 reporting purposes) or capital expenditures by business segment. Foreign source revenues and long-lived assets located in foreign countries are not material to the consolidated results of
operations and financial position of the Company and are, therefore, not disclosed separately.



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



NOTE 18.    Income Taxes

The Company reviews its annual tax rate on a quarterly basis and makes any necessary changes. The estimated annual tax rate may fluctuate due to changes
in forecasted annual operating income, changes in the jurisdictional mix of the forecasted annual operating income, positive or negative changes to the valuation allowance for net deferred tax assets, changes to actual or forecasted permanent book
to tax differences, impacts from future tax settlements with state or federal tax authorities or impacts from enacted tax law changes. The Company identifies items which are unusual and non-recurring in nature and treats these as discrete
events. The tax effect of discrete items is booked entirely in the quarter in which the discrete event occurs.

The Company has
unrecognized tax benefits, including interest, of approximately $3.5 million, net of federal tax effect, as of March 31, 2008. The Company believes that changes in the unrecognized tax benefits due to possible settlements are unlikely in the
next 12 months. The Companys historical accounting policy with respect to interest and penalties related to tax uncertainties has been to classify these amounts as income taxes, and the Company continued this classification upon the adoption
of FIN No. 48. The total amount of interest related to tax uncertainties recognized in the consolidated statements of income for the period ended March 31, 2008 was $0.1 million. The earliest tax year open to examination by the Internal
Revenue Service and the other tax jurisdictions in which the Company files a tax return is 2003.

NOTE 19.    Commitments and
Contingencies

Contractual Obligations

In connection with its operating activities, the Company enters into certain contractual obligations. The Companys material contractual cash obligations include long-term debt, a technology services agreement,
operating leases and other contracts. A summary of the Companys minimum required future cash payments associated with its contractual cash obligations outstanding as of March 31, 2008, as well as an estimate of the timing in which these
commitments are expected to expire, are set forth in the following table:



|                              |  |                        |        |      |   |        |  |      |        |      |   |            |  |       |        |  |   |        |  |   |        
|----------------------------- |  | ---------------------- | ------ | ---- | - | ------ |  | ---- | ------ | ---- | - | ---------- |  | ----- | ------ |  | - | ------ |  | - | -------
|                              |  | Payments Due by Period
|                              |  | 2008                   |        | 2009 |   | 2010   |  | 2011 |        | 2012 |   | Thereafter |  | Total
|                              |  | (in thousands)        
|Contractual Obligations       |  |                        |        |      |   |        |  |      |        |      |   |            |  |       |        |  |   |        |  |   |        
|Long-term debt principal      |  | $                      | 2,817  |      | $ | 2,817  |  | $    | 2,817  |      | $ | 7,739      |  | $     | 4,909  |  | $ | 59,182 |  | $ | 80,281 
|Long-term debt interest       |  |                        | 6,205  |      |   | 5,994  |  |      | 5,783  |      |   | 5,573      |  |       | 4,980  |  |   | 31,233 |  |   | 59,768 
|Services agreements1          |  |                        | 7,760  |      |   | 10,295 |  |      | 11,571 |      |   | 30,948     |  |       |       |  |   |       |  |   | 60,574 
|Operating leasesfacilities   |  |                        | 2,253  |      |   | 3,027  |  |      | 3,306  |      |   | 3,585      |  |       | 2,051  |  |   | 136    |  |   | 14,358 
|Operating leasesequipment    |  |                        | 1,677  |      |   | 1,408  |  |      | 540    |      |   |           |  |       |       |  |   |       |  |   | 3,625  
|Other long-term obligations   |  |                        | 973    |      |   | 1,041  |  |      | 967    |      |   | 800        |  |       | 800    |  |   | 5,247  |  |   | 9,828  
|                              |  |                        |        |      |   |        |  |      |        |      |   |            |  |       |        |  |   |        |  |   |        
|Total contractual obligations |  | $                      | 21,685 |      | $ | 24,582 |  | $    | 24,984 |      | $ | 48,645     |  | $     | 12,740 |  | $ | 95,798 |  | $ | 228,434
|                              |  |                        |        |      |   |        |  |      |        |      |   |            |  |       |        |  |   |        |  |   |        



|1 | Services agreements include required minimum payments in accordance with the CME Agreement (see Note 11 to the condensed consolidated financial statements). The CME Agreement
has a ten-year term from the launch date with rolling three-year extensions. Either party may elect to terminate the CME Agreement between the fifth and the sixth year anniversary of the first launch date upon written notice and payment of a
termination fee. As a result, the Companys current minimum obligation under the CME Agreement is for remaining payments through year five. As such, the Contractual Obligations table above sets forth the Companys minimum obligation
remaining through year five, including the related termination fee in the event the Company elects to terminate the CME Agreement. In addition, the services agreements category includes employment agreements as filed with the SEC.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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NYMEX HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



As previously disclosed in Note 18, the Company has $3.5 million of unrecognized tax benefits as of
March 31, 2008. The Company is subject to periodic examinations of its income tax returns by the U.S. Internal Revenue Service and various state and local taxing authorities, which could result in future tax liabilities, the payment of which
would offset the current unrecognized tax benefits. Due to the uncertainty of the outcome of any future income tax examinations, it is not possible to estimate when tax payments, if any, would be made.

The Company occupies premises under leases, including a land lease, with various lessors that expire in 2008 through 2069. For each of the three months
ended March 31, 2008 and 2007, rental expense for facilities and the land lease amounted to $0.6 million. The lease commitments on the Companys facilities include scheduled base rent increases over the terms of the leases. The base rent
payments are being charged to expense on the straight-line method over the terms of the leases. The Company has recorded a deferred credit to reflect the excess of rent expense over cash payments since inception of the leases.

The Company leases space to tenants in its headquarters facility. For the three months ended March 31, 2008 and 2007, rents collected from these
leases were $2.3 million and $2.1 million, respectively and are recorded in other revenue on the condensed consolidated statements of income. Future minimum rental income for the years 2008 through 2012 are as follows:



|           |  |                |       
|---------- |  | -------------- | ------
|           |  | (in thousands)
|2008       |  | $              | 5,010 
|2009       |  |                | 4,649 
|2010       |  |                | 4,461 
|2011       |  |                | 4,325 
|2012       |  |                | 4,306 
|Thereafter |  |                | 2,409 
|           |  |                |       
|Total      |  | $              | 25,160
|           |  |                |       

In 1994, the Company entered into a Letter of Intent with Battery Park City Authority
(BPCA), the New York City Economic Development Corporation (EDC) and the Empire State Development Corporation (ESDC) to construct a new trading facility and office building on a site in Battery Park City. By
agreement dated May 18, 1995, the EDC and ESDC agreed to provide funding of $128.7 million to construct the facility. The Company is liable for liquidated damages on a declining scale, currently set at $25.0 million, if it violates terms of the
occupancy agreement at any time prior to the 15 years from the date of occupancy, July 7, 1997.

In May 1995, the Company signed a
ground lease (expiring June 2069) with BPCA for the site where it constructed its headquarters and trading facility. The lease establishes payments in lieu of taxes (PILOTs) due to New York City, as follows: for the trading portion of
the facility, PILOTs are entirely abated for the first 20 years after occupancy; for the office portion of the facility, PILOTs are entirely abated for one year after occupancy, at a percentage of assessment (ranging from 25% to 92.5%) for the next
10 years and, thereafter, at an amount equal to assessment. Sub-let space is not eligible for abatements.

In 2002, the Company entered
into an agreement and received a $5.0 million grant from ESDC. This agreement requires the Company to maintain certain annual employment levels, and the grant is subject to recapture amounts, on a declining scale, over time.

The Company and the Board of Trade of the City of New York, Inc. (NYBOT) entered into a lease agreement that became effective on
November 20, 2002. In accordance with this lease agreement, NYBOT is leasing approximately 13,000 square feet on the COMEX Division trading floor and approximately 45,000 square feet of office space for a ten-year term. The rent commencement
date for the trading floor space and office space was July 1, 2003 and May 20, 2003, respectively. In 2007, NYBOT changed its corporate name to ICE Futures U.S., Inc.



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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



In accordance with the DME shareholders agreement, the Company is required to contribute capital to
the joint venture in an aggregate amount of $9.8 million over a five-year period, contingent upon the DMEs achievement of certain agreed upon performance targets. At March 31, 2008, the Company had contributed a total of $8.0 million.

Section 311(G) of the Bylaws of NYMEX Exchange provides for a revenue sharing
arrangement with the owners of Class A memberships in NYMEX Exchange in the event that either: (i) NYMEX Exchange determines to terminate permanently all open outcry floor trading for a specified list of products on the NYMEX Exchange and
instead lists such products for electronic trading only; or (ii) a shift occurs whereby at least 90% of the contract volume of such NYMEX Exchange product results from electronic trading. Once triggered for a particular product, the
obligation under the revenue sharing arrangement consists of the greater of the following amounts: (i) 10% of the gross NYMEX Exchange revenues attributable to all revenue from the electronic trading of such applicable NYMEX Exchange product,
but not including market data fees or revenues from bilateral transactions cleared through NYMEX ClearPort® Clearing (or its successor); or 100% of the revenue from any additional special
fee or surcharge that may be imposed by NYMEX Exchange on the transaction fees applicable to the electronic trading of such applicable NYMEX Exchange product. Once triggered, Bylaw Section 311(G) requires this revenue stream continue in
perpetuity or until NYMEX Exchange no longer lists such product for electronic trading. NYMEX Exchange has determined that a shift will have occurred for any applicable NYMEX Exchange product following the end of two consecutive fiscal
quarters in which, during each quarter, the average quarterly electronic trading volume has equaled or exceeded 90% of the contract volume in such product. Thereafter, revenues that are generated from the electronic trading of such product will
begin to accrue and will be paid to the owners of Class A memberships in NYMEX Exchange on a quarterly basis consistent with the financial reporting schedule of NYMEX Holdings. In accordance with the NYMEX Exchange Bylaws, such determination
may be subject to challenge by owners of Class A memberships in NYMEX Exchange through an arbitration.

Financial Guarantees

The Company has certain guarantee arrangements in its clearing process as well as other financial guarantees discussed below:

Included in marketable securities are investments that are pledged as collateral with one of the Companys investment managers relating to a
membership seat financing program. Under this program, the investment manager extends credit to individuals purchasing NYMEX Division memberships. The program requires that the Company pledge assets to the investment manager in an amount equal to at
least 118% of the loan value. In the event a member defaults on a loan, the investment manager has the right to seize the Companys collateral for the amount of the default, and the Company has the right to liquidate the members interest
in NYMEX Division to reimburse its loss of collateral. At March 31, 2008, there were total seat loan balances of $3.3 million and securities pledged against the seat loan balances of $3.9 million.

The Company serves a clearinghouse function, standing as a financial intermediary on every open futures and options transaction cleared. Through its
clearinghouse, the Company maintains a system of guarantees for performance of obligations owed to buyers and sellers. This system of guarantees is supported by several mechanisms, including margin deposits and guaranty funds posted by clearing
members with the Companys clearinghouse. The amount of margin deposits on hand will fluctuate over time as a result of, among other things, the extent of open positions held at any point in time by market participants in NYMEX Division and
COMEX Division contracts and the margin rates then in effect for such contracts. The Company is required, under the Commodity Exchange Act, to maintain separate accounts for cash and securities that are deposited by clearing members, at banks
approved by the Company, as margin for house and customer accounts. These clearing deposits are used by members to meet their obligations to the Company for margin requirements on open futures and options positions, as well as delivery obligations.



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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



The Company established additional retail customer protection supported by a commitment of at least
$10 million available at all times to promptly reimburse retail customers in the event that their clearing member defaults as a result of a default by another customer where margin funds from the retail customers account are used to address
the default. Retail customers are defined as those that do not otherwise qualify as eligible contract participants under the requirements of the Commodity Exchange Act, and are not floor traders or floor brokers on the Exchange or family
members of an Exchange floor trader or floor broker who maintains an account at the same clearing firm.

There were no events of default as
of March 31, 2008 and December 31, 2007, in any of the above arrangements, in which a liability should be recognized.

Legal Proceedings

In the ordinary course of business, the Company is a party to several lawsuits and claims. The Company periodically assesses its
liabilities and contingencies in connection with these matters, based upon the latest information available. As additional information becomes available, the Company adjusts its assessment and estimates of such liabilities accordingly. It is
possible that the ultimate resolution of its liabilities and contingencies could be at amounts that are different from any recorded reserves and that such differences could be material. Based on its review of the latest information available, the
Company believes its ultimate liability, if any, in connection with any current lawsuits or claims for pending or threatened legal proceedings, would not materially affect the Companys financial condition, results of operations, or cash flows.

Set forth below is a description of material litigation to which the Company is a party, as of March 31, 2008. Although there can be no
assurance as to the ultimate outcome, the Company believes it has a meritorious defense and is vigorously defending the matter described below. The final outcome of any litigation, however, cannot be predicted with certainty, and an adverse
resolution of this matter could have a material adverse effect on the Companys consolidated results of operations, financial position or cash flows.

The Company has been named as a defendant in the following legal actions:

New York Mercantile Exchange,
Inc. v. IntercontinentalExchange, Inc. On November 20, 2002, NYMEX Exchange commenced an action in United States District Court for the Southern District of New York against IntercontinentalExchange, Inc. (ICE). The amended
complaint alleges claims for: (a) copyright infringement by ICE arising out of ICEs uses of certain NYMEX Exchange settlement prices; (b) service mark infringement by reason of use by ICE of the service marks NYMEX and NEW YORK
MERCANTILE EXCHANGE; (c) violation of trademark anti-dilution statutes; and (d) interference with contractual relationships. On January 6, 2003, ICE served an Answer and Counterclaims, in which ICE alleges five counterclaims against
NYMEX Exchange as follows: (1) a claim for purported violation of Section 2 of the Sherman Act, 15 U.S.C. § 2, for NYMEX Exchanges allegedly trying to maintain a monopoly in the execution of the North America energy futures and
expand the alleged monopoly into the execution and clearing of North American OTC energy contracts by attempting to deny ICE access to NYMEX Exchange settlement prices; (2) a claim for purported violation of Section 1 of the Sherman Act by
conspiring with certain of its members to restrain trade by attempting to deny ICE access to NYMEX Exchange settlement prices; (3) a claim for alleged violation of Section 2 of the Sherman Act by NYMEX Exchange purportedly denying ICE
access to NYMEX Exchanges settlement prices which are allegedly an essential facility; (4) a claim for purported violation of Section 1 of the Sherman Act and Section 3 of the Clayton Act by NYMEX Exchange allegedly
tying execution services for North American energy futures and options to clearing services; and (5) a claim for purported violation of the Lanham Act through false advertising with respect to certain services offered by NYMEX Exchange and
services offered by ICE. The



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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)



counterclaims request damages and trebled damages in amounts not specified yet by ICE in addition to injunctive and declaratory relief.

On August 11, 2003, the Court issued an opinion dismissing certain counterclaims and one affirmative defense, with leave to replead. On or about
August 28, 2003, NYMEX Exchange was served with ICEs First Amended Counterclaims in which ICE made four counterclaims against NYMEX Exchange principally alleging violations of U.S. antitrust laws, including claims regarding monopoly
leveraging.

By Order and Opinion dated June 30, 2004, the Court granted NYMEX Exchanges motion and dismissed all of the
antitrust counterclaims asserted against NYMEX Exchange. ICE did not appeal this decision.

By Order and Opinion dated September 29,
2005, the Court (1) granted ICEs motion for summary judgment to the extent of dismissing NYMEX Exchanges federal claims for copyright and trademark infringement and dismissing without prejudice (by declining to exercise supplemental
jurisdiction), NYMEX Exchanges state law claims for violation of trademark anti-dilution statutes and interference with contractual relationships, and (2) denied NYMEX Exchanges cross-motion for partial summary judgment on copyright
infringement and tortious interference with contract. On October 13, 2005, NYMEX Exchange filed a notice of appeal with the United States Court of Appeals for the Second Circuit. On August 1, 2007, the United States Court of Appeals
affirmed the judgment of the lower Court. On August 15, 2007, NYMEX Exchange filed a Combined Petition for Panel Rehearing and for Rehearing En Banc before the United States Court of Appeals for the Second Circuit. On October 18,
2007, the Court denied NYMEX Exchanges petition.

On January 16, 2008, NYMEX Exchange filed its Petition for a Writ of Certiorari
with the United States Supreme Court. ICE filed its Brief in Opposition on February 12, 2008. NYMEX Exchange filed its Reply Brief on February 25, 2008. On March 17, 2008, the United States Supreme Court denied NYMEX Exchanges
Petition for a Writ of Certiorari. This matter is now concluded.

Cataldo J. Capozza v. NYMEX Holdings, Inc., et al. On
March 17, 2008, Cataldo J. Capozza, a NYMEX Holdings shareholder and a former Class A member of NYMEX Exchange commenced a putative class action in the Delaware Court of Chancery, on behalf of himself and all other NYMEX Holdings shareholders,
against NYMEX Holdings, the members of its board of directors and CME Group. The complaint, which seeks to enjoin the Companys merger with CME Group, alleges, among other things, that the directors breached their fiduciary duties to NYMEX
Holdings shareholders by attempting to sell the Company for inadequate and unfair consideration and pursuant to an inadequate and unfair process, and that CME Group aided and abetted such breaches. On April 21, 2008, the NYMEX Holdings
and its directors moved to dismiss the complaint and to stay all discovery pending the disposition of the motion to dismiss. This matter is ongoing.

Polly Winters v. NYMEX Holdings, Inc., et al., and Joan Haedrich v. NYMEX Holdings, Inc., et al. On April 14 and 15, 2008, respectively, two additional putative class actions were commenced in the Delaware Court of
Chancery by Polly Winters and Joan Haedrich, both NYMEX Holdings shareholders, on behalf of themselves and all other NYMEX Holdings shareholders, against NYMEX Holdings, the members of its board of directors and CME Group. The Winters and Haedrich
complaints contain allegations virtually identical to those in the Capozza action (discussed above). NYMEX Holdings and its directors have not yet responded to the Winters and Haedrich complaints. These matters are ongoing.

NOTE 20.    Subsequent Event

On
May 1, 2008, the Company announced that its board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of June 6, 2008 that will be payable on June 27, 2008.



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|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

Business Overview

The Company provides
facilities to buy, sell and clear energy, precious and base metals, soft and other commodities for future delivery under rules intended to protect the interests of market participants. The Company provides liquid marketplaces where physical
commodity market participants can manage future price risk and, through the Companys clearing operations, mitigate counterparty credit risk. Through real-time and delayed dissemination of its transaction prices, the Company provides price
discovery and transparency to market participants. In order to enhance its markets and provide market participants additional mechanisms to manage risk, the Company continuously offers new products, distribution services and clearing services. The
Company does not own commodities, trade for its own account, or otherwise engage in market activities.

The NYMEX Division provides a
marketplace for trading energy futures and options. The COMEX Division provides a marketplace for trading precious and base metals futures and options. NYMEX Divisions principal markets include crude oil, natural gas, heating oil and gasoline.
COMEX Divisions principal markets include gold, silver and high grade copper. In addition, the Company offers soft commodities futures contracts for coffee, sugar, cocoa and cotton. The Company provides the physical facilities for open outcry
auction markets. The open outcry markets operate during regular business hours, and trading activities in these markets are, for purposes of this management discussion, referred to as floor trading.

The Company provides trade-clearing services for all transactions executed through its floor
trading operations and its NYMEX ClearPort® Trading electronic trading platform, and for all Company product transactions executed on the CME Globex® electronic trading platform (CME Globex). In addition, through NYMEX ClearPort® Clearing, an over-the-counter (OTC) clearing
initiative, the Company alleviates some of the credit issues in the marketplace by providing the usage of the Companys clearing operations to offer market participants the advantages of reducing costs and permitting futures and OTC positions
to be offset. This initiative permits market participants to negotiate bilateral trades in the OTC market, which are then transferred to the Companys division as futures contracts for clearing.

In order to conduct floor-trading activities, market participants must own or lease a membership on the NYMEX Division or COMEX Division. Non-members may
execute floor trades on the Companys divisions, but must do so through a member. In addition, the Company makes available its product slate for electronic trading on CME Globex nearly 24 hours a day and five days per week to market
participants who have a clearing relationship with a Company clearing member.

Certain NYMEX Division and COMEX Division members are clearing members. Clearing members provide capital to support the Companys clearing activities. All market participants trading through the Companys floor trading or trading
Company products through CME Globex must have a clearing relationship with a clearing member who will clear their trades through the Companys clearinghouse. Market participants must have similar clearing member relationships to use NYMEX
ClearPort® Clearing.

The Companys principal sources of revenues are
clearing and transaction fees derived from trades executed on its divisions, and/or cleared through its clearinghouse, and fees charged for the Companys proprietary futures and options contract price information.

Clearing and transaction fees are dependent primarily upon the volume of trading activity conducted on the Companys divisions and cleared by the
Companys clearinghouse. These volumes are impacted by several factors, including:



| |  |  | National and international economic and political conditions;
| | - |  | -------------------------------------------------------------



| |  |  | Volatility in price levels of the underlying commodities;
| | - |  | ---------------------------------------------------------



| |  |  | Market perception of stability in commodities and financial markets;
| | - |  | --------------------------------------------------------------------



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| |  |  | The level and volatility of interest rates and inflation;
| | - |  | ---------------------------------------------------------



| |  |  | Credit quality of market participants; and
| | - |  | ------------------------------------------



| |  |  | Weather conditions affecting certain energy commodities.
| | - |  | --------------------------------------------------------

The relative proportions of member and non-member trading activities, and the trading venues on which market participants trade also impact the levels of clearing and transaction fees. NYMEX Division and COMEX
Division members are afforded more favorable transaction pricing than non-members, and are eligible to participate in certain transaction fee and cost reduction programs, which impact the level of clearing and transaction fees and other revenues.

Market data relating to proprietary prices of contracts executed on the Companys divisions are sold to vendors who redistribute this
information to market participants and others. The level of market data fees is dependent upon the number of vendors and the number of end users receiving data through the vendor redistribution process. The Company relies on its market data vendors
to supply accurate information regarding the number of subscribers that are accessing the Companys market data.

The Companys
expenses consist primarily of direct transaction costs, employee compensation and benefits and the cost of facilities, equipment, software and communications to support the Companys trading and clearing operations. The Company also incurs
marketing costs associated with the development and launch of new products and services. The Company continually invests in technology and infrastructure to support market expansion, enhance its trading and clearing technology, and develop new
products and services.

Recent Developments

On March 6, 2008, NYMEX Holdings and LCH.Clearnet Ltd announced that they have signed a Heads of Terms to introduce a broad range of global energy products. This alliance is intended to deliver improved capital
and operational efficiencies through wider execution capabilities, broader credit intermediation and margining benefits for customers and market participants. Under the terms of the arrangement, the Company will offer a new and distinct slate of OTC
and futures products for clearing through LCH.Clearnet. The initial slate will encompass the global benchmark oil contracts, including WTI, Brent and Gasoil, as well as key natural gas and electricity contracts. The contracts are expected to begin
trading and clearing in mid-2008, pending regulatory approval.

On March 17, 2008, the Company and CME Group Inc. (CME
Group) entered into a definitive agreement (the Merger Agreement), under which the Company would merge with and into CME Group, with CME Group continuing as the surviving company (see Note 1 to the unaudited condensed consolidated
financial statements). The merger is subject to a number of closing conditions, including, but not limited to, (i) approval of the stockholders of the Company, (ii) approval of the stockholders of CME Group of (A) an amendment to CME
Groups Charter and (B) the issuance of CME Groups shares in connection with the merger, (iii) acceptance of the offer to purchase one hundred percent (100%) of the outstanding Class A memberships in NYMEX Exchange
from the holders thereof for an aggregate purchase price not to exceed $500 million, or approximately $612,000 per Class A membership in NYMEX Exchange and approval of an Amended and Restated Certificate of Incorporation and Amended and
Restated Bylaws of NYMEX Exchange, in each case, by holders of at least 75% of the outstanding Class A memberships in NYMEX Exchange, (iv) effectiveness of a Form S-4 registration statement to be filed by CME Group, (v) receipt of
certain regulatory approvals and (vi) receipt of an opinion that the merger will be treated as a tax-free reorganization. The Company has incurred $7.9 million of merger-related expenses, of which approximately $6.7 million are considered
non-deductible for income tax purposes. These expenses consist primarily of professional fees and are recorded in Other expenses in the condensed consolidated statements of income. Certain numbers and percentages in this
Managements Discussion and Analysis of Financial Condition and Results of Operations are presented excluding these merger-related expenses and are considered non-GAAP (generally accepted accounting principles) financial data. The Company
believes that this non-GAAP financial data is useful to assist investors in gaining an understanding of the trends and



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operating results of the Companys business. This non-GAAP financial data should be viewed in addition to, and not in lieu of, the Companys
reported results under U.S. GAAP.

Regulation G Reconciliation of Non-GAAP Financial Measures

In evaluating its financial performance, the Company reviews results from operations, which excludes non-operating charges. Pro-forma earnings per share
is a non-GAAP performance measure, but the Company believes that it is useful to assist investors in gaining an understanding of the trends and operating results for its core business. Pro-forma earnings per share should be viewed in addition to,
and not in lieu of, the reported results under U.S. GAAP. The following is a reconciliation of U.S. GAAP results to pro-forma results for the periods presented (in thousands):



|                                         |  |                                           |         |              |   |                                           |  |   |        
|---------------------------------------- |  | ----------------------------------------- | ------- | ------------ | - | ----------------------------------------- |  | - | -------
|                                         |  | U.S. GAAPThree Months EndedMarch 31, 2008 |         | Adjustments1 |   | Pro-FormaThree Months EndedMarch 31, 2008
|Operating income                         |  | $                                         | 132,888 |              | $ | 7,925                                     |  | $ | 140,813
|Non-operating income                     |  |                                           | 1,538   |              |   |                                          |  |   | 1,538  
|                                         |  |                                           |         |              |   |                                           |  |   |        
|Income before provision for income taxes |  |                                           | 134,426 |              |   | 7,925                                     |  |   | 142,351
|Provision for income taxes               |  |                                           | 63,241  |              |   | 520                                       |  |   | 63,761 
|                                         |  |                                           |         |              |   |                                           |  |   |        
|Net income                               |  | $                                         | 71,185  |              | $ | 7,405                                     |  | $ | 78,590 
|                                         |  |                                           |         |              |   |                                           |  |   |        
|Earnings per Share:                      |  |                                           |         |              |   |                                           |  |   |        
|Basic                                    |  | $                                         | 0.75    |              | $ | 0.08                                      |  | $ | 0.83   
|Diluted                                  |  | $                                         | 0.75    |              | $ | 0.08                                      |  | $ | 0.83   



|1 | These adjustments are related to the merger-related expenses incurred in connection with the proposed merger with CME Group as discussed above in the Recent
Developments section.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Note Regarding Forward-Looking Statements

The Company may, in discussions of its future plans, objectives and expected performance in periodic reports filed by the Company with the Securities and
Exchange Commission (or documents incorporated by reference therein) and in written and oral presentations made by the Company, include projections or other forward-looking statements within the meaning of Section 27A of the Securities Act of
1933 or Section 21E of the Securities Exchange Act of 1934, as amended (the 1934 Act). Such projections and forward-looking statements are based on assumptions, which the Company believes are reasonable but are, by their nature,
inherently uncertain. Some of the important factors that could cause actual results to differ from any such projections or other forward-looking statements are discussed below, and in other reports filed by the Company under the 1934 Act, including
in the Companys December 31, 2007 Annual Report on Form 10-K. The Companys forward-looking statements are based on information available to the Company as of the date hereof, and except as required by law, the Company undertakes no
obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Actual results and experience may differ materially from forward-looking statements as a result of many factors, including:
changes in general economic and industry conditions in various markets in which the Companys contracts are traded; increased competitive activity; fluctuations in prices of the underlying commodities as well as for trading floor administrative
expenses related to the trading and clearing of contracts; the ability to control costs and expenses; changes to legislation or regulations; protection and validity of the Companys intellectual property rights and rights licensed from others;
the Companys ability to obtain the required approvals and to satisfy the closing conditions for the Companys proposed merger with CME Group and the Companys ability to realize the benefits and control the costs of the proposed
transaction; and other unanticipated events and conditions. It is not possible for the Company to foresee or identify all such factors.

Results of
Operations

Net income for the three months ended March 31, 2008 was $71.2 million, an increase of $15.0 million or 27%
compared to the same period last year. This increase was the result of operating revenues increasing by



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$44.6 million, which was partially offset by increases in operating expenses and income taxes of $7.5 million and $19.8 million, respectively. Additionally,
non-operating income decreased $2.4 million compared to the prior year period. Excluding merger-related costs, net income for the three months ended March 31, 2008 was $78.6 million or $0.83 per share on a diluted basis.

The increase in operating revenues was due to an increase in gross clearing and transaction fees as a result of higher trading and clearing volumes. The
increase in operating expenses was due primarily to the $7.9 million of merger-related expenses for legal and advisory services related to the Merger Agreement. Direct transaction costs, which are directly associated with higher clearing and
transaction volume, increased by $4.0 million. This increase was offset by a decrease in all other expense categories, particularly salaries and employee benefits and professional services which declined $1.1 million each. The decrease in
non-operating income was due primarily to a change in the asset type that comprises the Companys investment portfolio.

Volumes

Provided below is a summary of total volume traded and/or cleared and open interest on the
Companys three significant components of trading and clearing operations: (i) NYMEX Division; (ii) COMEX Division; and (iii) NYMEX ClearPort® Clearing. NYMEX Division
and COMEX Division information presented excludes contracts cleared through NYMEX ClearPort® Clearing. Trading and clearing volumes discussed in this managements discussion and
analysis are expressed as round-turns, which are matched buys and sells of the underlying contracts. Trading and clearing volumes include futures settlement and options exercise transactions, as well as cash settlement transactions for
contracts cleared on NYMEX ClearPort® Clearing, for which transaction fees are assessed. Open interest represents the number of contracts at March 31, 2008 for which clearing members
and their customers are obligated to the Companys clearinghouse and are required to make or take future delivery of the physical commodity (or in certain cases be settled in cash), or close out the position with an offsetting sale or purchase
prior to contract expiration. Options open interest represents unexpired, unexercised option contracts.

NYMEX Division

For the three months ended March 31, 2008, the volume of futures and options contracts traded and cleared on the NYMEX Division was 69.6 million
contracts, an increase of 10.2 million contracts or 17%, compared to 59.4 million contracts for the same period last year. Futures contract volume was 56.7 million contracts, an increase of 7.8 million contracts or 16%, compared
to 48.9 million contracts for the same period last year. Options contract volume was 12.9 million contracts, an increase of 2.4 million contracts or 23%, compared to 10.5 million contracts for the same period last year.

The following tables set forth trading and clearing volumes and open interest for the Companys energy futures and options products:

NYMEX Division Contracts Traded and Cleared

For the Quarter Ended March 31,

(in thousands)



|            |         |        |         |        |       |        |         |        |         |        |       |       
|----------- | ------- | ------ | ------- | ------ | ----- | ------ | ------- | ------ | ------- | ------ | ----- | ------
|            |         | 2008   |         | 2007  
|            | Futures |        | Options |        | Total |        | Futures |        | Options |        | Total
|Crude oil   |         | 35,597 |         | 9,816  |       | 45,413 |         | 32,130 |         | 8,020  |       | 40,150
|Natural gas |         | 10,011 |         | 2,538  |       | 12,549 |         | 7,763  |         | 2,097  |       | 9,860 
|Heating oil |         | 5,051  |         | 233    |       | 5,284  |         | 4,577  |         | 184    |       | 4,761 
|Gasoline    |         | 5,595  |         | 259    |       | 5,854  |         | 4,181  |         | 191    |       | 4,372 
|Other       |         | 448    |         | 25     |       | 473    |         | 214    |         |       |       | 214   
|            |         |        |         |        |       |        |         |        |         |        |       |       
|Total       |         | 56,702 |         | 12,871 |       | 69,573 |         | 48,865 |         | 10,492 |       | 59,357
|            |         |        |         |        |       |        |         |        |         |        |       |       



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NYMEX Division Contracts Open Interests

At March 31,

(in thousands)



|            |         |       |         |       |       |       |         |       |         |       |       |      
|----------- | ------- | ----- | ------- | ----- | ----- | ----- | ------- | ----- | ------- | ----- | ----- | -----
|            |         | 2008  |         | 2007 
|            | Futures |       | Options |       | Total |       | Futures |       | Options |       | Total
|Crude oil   |         | 1,606 |         | 4,928 |       | 6,534 |         | 1,423 |         | 3,785 |       | 5,208
|Natural gas |         | 868   |         | 1,015 |       | 1,883 |         | 746   |         | 1,456 |       | 2,202
|Heating oil |         | 225   |         | 84    |       | 309   |         | 209   |         | 49    |       | 258  
|Gasoline    |         | 239   |         | 122   |       | 361   |         | 167   |         | 86    |       | 253  
|Other       |         | 34    |         | 1     |       | 35    |         | 27    |         |      |       | 27   
|            |         |       |         |       |       |       |         |       |         |       |       |      
|Total       |         | 2,972 |         | 6,150 |       | 9,122 |         | 2,572 |         | 5,376 |       | 7,948
|            |         |       |         |       |       |       |         |       |         |       |       |      

The Company believes the overall growth in total futures and options energy contracts traded and
cleared on the NYMEX Division for the three-month period ended March 31, 2008 was due primarily to the following factors:



| |  |  | Continued strong global demand for crude oil, natural gas, heating oil and gasoline;
| | - |  | ------------------------------------------------------------------------------------



| |  |  | Global economic uncertainty combined with a weak U.S. dollar impacted both oil prices as well as volatility of prices and volumes;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------



| |  |  | Unrest in Nigeria and other oil producing countries in Africa and the Middle East heightened concerns over the reliability of oil exports from such countries;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | A steady increase in the price of gasoline due to uncertainty surrounding refinery capacity as driving season in the U.S. approaches;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------



| |  |  | A steady increase in demand for natural gas due to moderately colder winter temperatures as compared to last year; and
| | - |  | ----------------------------------------------------------------------------------------------------------------------



| |  |  | Increased acceptance and accessibility of electronic trading.
| | - |  | -------------------------------------------------------------

All of these factors impact the volatility of the commodities which, in turn, increases trading activity.

COMEX
Division

For the three months ended March 31, 2008, the volume of futures and options contracts traded and cleared on the COMEX
Division was 16.3 million contracts, an increase of 6.9 million contracts or 74%, compared to 9.4 million contracts for the same period last year. Futures contract volume was 14.5 million contracts, an increase of
6.4 million contracts or 79%, compared to 8.1 million contracts for the same period last year. Options contract volume was 1.8 million contracts, an increase of 0.5 million contracts or 40%, compared to 1.3 million contracts
for the same period last year.



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The following tables set forth trading and clearing volumes and open interest for the Companys
major metals futures and options products:

COMEX Division Contracts Traded and Cleared

For the Quarter Ended March 31,

(in thousands)



|                  |         |        |         |       |       |        |         |       |         |       |       |      
|----------------- | ------- | ------ | ------- | ----- | ----- | ------ | ------- | ----- | ------- | ----- | ----- | -----
|                  |         | 2008   |         | 2007 
|                  | Futures |        | Options |       | Total |        | Futures |       | Options |       | Total
|Gold              |         | 10,748 |         | 1,287 |       | 12,035 |         | 5,759 |         | 1,022 |       | 6,781
|Silver            |         | 2,634  |         | 552   |       | 3,186  |         | 1,467 |         | 289   |       | 1,756
|High grade copper |         | 1,116  |         | 10    |       | 1,126  |         | 868   |         | 9     |       | 877  
|Aluminum          |         |       |         |      |       |       |         | 1     |         |      |       | 1    
|                  |         |        |         |       |       |        |         |       |         |       |       |      
|Total             |         | 14,498 |         | 1,849 |       | 16,347 |         | 8,095 |         | 1,320 |       | 9,415
|                  |         |        |         |       |       |        |         |       |         |       |       |      

COMEX Division Contracts Open Interests

At March 31,

(in thousands)



|                  |         |      |         |      |       |       |         |     |         |     |       |    
|----------------- | ------- | ---- | ------- | ---- | ----- | ----- | ------- | --- | ------- | --- | ----- | ---
|                  |         | 2008 |         | 2007
|                  | Futures |      | Options |      | Total |       | Futures |     | Options |     | Total
|Gold              |         | 406  |         | 417  |       | 823   |         | 342 |         | 322 |       | 664
|Silver            |         | 147  |         | 162  |       | 309   |         | 111 |         | 111 |       | 222
|High grade copper |         | 100  |         | 3    |       | 103   |         | 76  |         | 4   |       | 80 
|                  |         |      |         |      |       |       |         |     |         |     |       |    
|Total             |         | 653  |         | 582  |       | 1,235 |         | 529 |         | 437 |       | 966
|                  |         |      |         |      |       |       |         |     |         |     |       |    

The Company believes the increases in futures and options metals contracts traded and cleared on
the COMEX Division for the three-month period ended March 31, 2008 were due primarily to the following factors:



| |  |  | Increased inflation;
| | - |  | --------------------



| |  |  | A weakened U.S. currency compared to other international currencies;
| | - |  | --------------------------------------------------------------------



| |  |  | An increase in the volatility of all metals;
| | - |  | --------------------------------------------



| |  |  | A decrease in copper inventories;
| | - |  | ---------------------------------



| |  |  | An increase in precious metals inventories; and
| | - |  | -----------------------------------------------



| |  |  | An increase in price levels for all metals, particularly gold.
| | - |  | --------------------------------------------------------------

All of these factors impact the volatility of the commodities which, in turn, increases trading activity.

NYMEX ClearPort® Clearing

For the three months ended March 31, 2008, the volume of futures and options contracts cleared
on NYMEX ClearPort® Clearing was 28.2 million contracts, an increase of 4.7 million contracts or 20%, compared to 23.5 million contracts for the same period last year.
Futures contract volume was 18.1 million contracts, an increase of 4.0 million contracts or 28%, compared to 14.1 million contracts for the same period last year. Options contract volume was 10.1 million contracts, an increase of
0.7 million contracts or 7%, compared to 9.4 million contracts for the same period last year.



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The following tables set forth clearing volumes
for products cleared through NYMEX ClearPort® Clearing:

NYMEX ClearPort® Clearing Contracts

For the Quarter Ended March 31,

(in thousands)



|            |         |        |         |        |       |        |         |        |         |       |       |       
|----------- | ------- | ------ | ------- | ------ | ----- | ------ | ------- | ------ | ------- | ----- | ----- | ------
|            |         | 2008   |         | 2007  
|            | Futures |        | Options |        | Total |        | Futures |        | Options |       | Total
|Natural gas |         | 16,187 |         | 7,706  |       | 23,893 |         | 13,441 |         | 8,589 |       | 22,030
|Electricity |         | 119    |         | 96     |       | 215    |         | 162    |         | 95    |       | 257   
|Petroleum   |         | 1,759  |         | 2,286  |       | 4,045  |         | 496    |         | 735   |       | 1,231 
|Coal        |         | 45     |         |       |       | 45     |         | 26     |         |      |       | 26    
|Other       |         | 10     |         | 7      |       | 17     |         | 1      |         |      |       | 1     
|            |         |        |         |        |       |        |         |        |         |       |       |       
|Total       |         | 18,120 |         | 10,095 |       | 28,215 |         | 14,126 |         | 9,419 |       | 23,545
|            |         |        |         |        |       |        |         |        |         |       |       |       

NYMEX ClearPort® Clearing Open Interests

At March 31,

(in thousands)



|            |         |       |         |       |       |        |         |       |         |       |       |       
|----------- | ------- | ----- | ------- | ----- | ----- | ------ | ------- | ----- | ------- | ----- | ----- | ------
|            |         | 2008  |         | 2007 
|            | Futures |       | Options |       | Total |        | Futures |       | Options |       | Total
|Natural gas |         | 7,276 |         | 5,848 |       | 13,124 |         | 6,249 |         | 5,080 |       | 11,329
|Electricity |         | 189   |         | 168   |       | 357    |         | 222   |         | 126   |       | 348   
|Petroleum   |         | 430   |         | 1,756 |       | 2,186  |         | 337   |         | 761   |       | 1,098 
|Coal        |         | 15    |         |      |       | 15     |         | 11    |         |      |       | 11    
|Other       |         | 12    |         |      |       | 12     |         | 3     |         |      |       | 3     
|            |         |       |         |       |       |        |         |       |         |       |       |       
|Total       |         | 7,922 |         | 7,772 |       | 15,694 |         | 6,822 |         | 5,967 |       | 12,789
|            |         |       |         |       |       |        |         |       |         |       |       |       

The Company believes that the continued
growth of NYMEX ClearPort® Clearing was due, in part, to traditional over-the-counter market participants seeking credit risk mitigation provided by the Companys clearinghouse for
off-exchange trade execution activities. Particularly, natural gas contracts comprise a significant majority of the total number of NYMEX ClearPort® Clearing products offered. As such, the
Company believes that its total NYMEX ClearPort® Clearing volume will be directly affected by the volatility and direction of the natural gas markets.

Operating Revenues

The components of operating
revenues, as well as dollar and percentage changes, are as follows:



|                              |  |                             |         |        |   |             |  |   |        |  |    |  
|----------------------------- |  | --------------------------- | ------- | ------ | - | ----------- |  | - | ------ |  | -- | -
|                              |  | Three Months EndedMarch 31, |         | Change |  
|(Dollars in thousands)        |  | 2008                        |         | 2007   |   | 2008 v 2007 | 
|Clearing and transaction fees |  | $                           | 179,051 |        | $ | 138,177     |  | $ | 40,874 |  | 30 | %
|Market data fees              |  |                             | 26,213  |        |   | 23,137      |  |   | 3,076  |  | 13 | %
|Other                         |  |                             | 3,611   |        |   | 2,912       |  |   | 699    |  | 24 | %
|                              |  |                             |         |        |   |             |  |   |        |  |    |  
|                              |  | $                           | 208,875 |        | $ | 164,226     |  | $ | 44,649 |  | 27 | %
|                              |  |                             |         |        |   |             |  |   |        |  |    |  



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Clearing and Transaction Fees

The increase for the three months ended March 31, 2008 was due principally to higher levels of
electronic volume from the Companys products traded on CME Globex. The total volume of contracts traded and/or cleared was 114.1 million contracts, an increase of 24% compared to 92.3 million contracts in the same period last year.
Average daily volume was 1.871 million contracts for the three months ended March 31, 2008, a 24% increase compared to 1.513 million contracts in the prior year period. Additionally, the gross average rate per contract increased to
$1.57 from $1.50 for the same period last year, driven primarily by a fee increase that went into effect on January 1, 2008 as well as increased volume on NYMEX ClearPort® Clearing
which charges a higher average rate per trade.

Market Data Fees

The Company provides proprietary real-time market data, news and advanced analytics to desktops and mobile devices for which the Company charges fees.
Market data provides information about bids, offers, trades and trade size relating to futures and options contracts to the Companys subscribers. The increase in market data fees for the three months ended March 31, 2008 was attributable
to a new price structure that went into effect on February 1, 2008, as well as an increase in desktops and mobile devices in 2008. As of March 31, 2008, the Companys market data was displayed on approximately 146,000 devices, an
increase of 10% compared to the same period last year.

Other

The increase for the first quarter of 2008 was due primarily to facilitation desk fees that were implemented in the fourth quarter of 2007 as well as higher floor fines during the current period. The facilitation desk
fees are charged when the Companys customer service department is needed to facilitate customer trades.

Operating Expenses

The components of operating expenses, as well as dollar and percentage changes, are as follows:



|                               |      |                             |        |        |             |        |  |   |        |   |  |     |  
|------------------------------ | ---- | --------------------------- | ------ | ------ | ----------- | ------ |  | - | ------ | - |  | --- | -
|(Dollars in thousands)         |      | Three Months EndedMarch 31, |        | Change |            
|                               | 2008 |                             | 2007   |        | 2008 v 2007 |       
|Direct transaction costs       |      | $                           | 28,083 |        | $           | 24,102 |  | $ | 3,981  |   |  | 17  | %
|Salaries and employee benefits |      |                             | 19,976 |        |             | 21,038 |  |   | (1,062 | ) |  | -5  | %
|Occupancy and equipment        |      |                             | 5,760  |        |             | 5,943  |  |   | (183   | ) |  | -3  | %
|Depreciation and amortization  |      |                             | 3,458  |        |             | 3,531  |  |   | (73    | ) |  | -2  | %
|General and administrative     |      |                             | 4,621  |        |             | 4,697  |  |   | (76    | ) |  | -2  | %
|Professional services          |      |                             | 3,126  |        |             | 4,186  |  |   | (1,060 | ) |  | -25 | %
|Telecommunications             |      |                             | 1,250  |        |             | 1,423  |  |   | (173   | ) |  | -12 | %
|Marketing                      |      |                             | 1,350  |        |             | 1,933  |  |   | (583   | ) |  | -30 | %
|Other expenses                 |      |                             | 8,363  |        |             | 1,661  |  |   | 6,702  |   |  | 403 | %
|                               |      |                             |        |        |             |        |  |   |        |   |  |     |  
|                               |      | $                           | 75,987 |        | $           | 68,514 |  | $ | 7,473  |   |  | 11  | %
|                               |      |                             |        |        |             |        |  |   |        |   |  |     |  

Direct Transaction Costs

The increase in direct transaction costs for the three months ended March 2008 was primarily attributable to record volume on CME Globex. In the first
quarter of 2008, NYMEX Division electronic trading volume on CME Globex averaged approximately 814,000 contracts per day, an increase of 36% compared to the same period last year. COMEX Division electronic trading volume on CME Globex averaged
approximately 205,000



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contracts per day in the first quarter of 2008, an increase of 127% compared to the same period last year. Increased volume on NYMEX ClearPort® Clearing also contributed to the increase in direct transaction costs. Direct transaction costs for both of these platforms are volume based and, therefore, the increased volumes equated to
higher costs.

Salaries and Employee Benefits

Salaries and employee benefits are comprised of employee wages, bonuses, non-cash share-based compensation, benefits and employer taxes. The decrease in salaries and employee benefits for the three months ended
March 31, 2008 was due primarily to a decrease in the average number of employees during the quarter to 389 compared to 470 during the same period last year. This decline in employees resulted in lower total wages and related benefit costs
during the current quarter. Partially offsetting this decrease was an increase in share-based compensation of $1.4 million during the quarter resulting from additional equity awards granted subsequent to the first quarter of last year.

Occupancy and Equipment

The slight
decrease in occupancy and equipment expenses for the three months ended March 31, 2008 was due primarily to lower repair and maintenance charges incurred on the Companys headquarters facility and technology equipment offset, in part, by
higher utility and security enhancement costs.

Depreciation and Amortization

Depreciation and amortization expense for the three months ended March 31, 2008 was essentially the same compared to the same period last year.

General and Administrative

General and administrative expenses for the three months ended March 31, 2008 were essentially the same compared to the same period last year.

Professional Services

The decrease in professional services expenses for the three months ended March 31, 2008
was principally attributable to lower legal fees, as the prior year period had increased costs that were incurred to support the Companys strategic business initiatives.

Telecommunications

The decrease in telecommunications expenses for the three months ended
March 31, 2008 was attributable to lower data communication and telephone costs, which was mainly the result of the Companys continuing efforts to be more efficient and disciplined in its expense management.

Marketing

Marketing expenses consist of
conferences, special events, advertising, and promotional expenses. For the three months ended March 31, 2008, the decrease was attributable to lower advertising costs, which were partially offset by increases in conferences, special events and
other marketing related costs. The overall decrease was again due to the Companys disciplined expense management.



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Other Expenses

As previously noted, the Company has entered into a Merger Agreement with CME Group and, as a result, has incurred $7.9 million of merger-related expenses that are recorded in Other Expenses in the
condensed consolidated statements of income. These merger-related expenses were primarily investment banking, legal and accounting fees. Excluding these merger-related expenses, other expenses decreased $1.2 million for the three months ended
March 31, 2008. This decrease was a direct result of lower member benefit costs, as the Company discontinued its members benefit subsidy program effective April 1, 2007.

Non-Operating Income and Expenses

The components of non-operating income and expenses, as well as
dollar and percentage changes, are as follows:



|                                              |      |                             |        |      |        |   |             |   |  |   |         |   |  |     |  
|--------------------------------------------- | ---- | --------------------------- | ------ | ---- | ------ | - | ----------- | - |  | - | ------- | - |  | --- | -
|(Dollars in thousands)                        |      | Three Months EndedMarch 31, |        |      | Change |  
|                                              | 2008 |                             |        | 2007 |        |   | 2008 v 2007 |  
|Investment income, net                        |      | $                           | 3,614  |      |        | $ | 6,707       |   |  | $ | (3,093  | ) |  | -46 | %
|Interest income from securities lending       |      |                             | 7,768  |      |        |   | 29,406      |   |  |   | (21,638 | ) |  | -74 | %
|Interest expense/fees from securities lending |      |                             | (6,048 | )    |        |   | (28,889     | ) |  |   | 22,841  |   |  | -79 | %
|Interest expense                              |      |                             | (1,586 | )    |        |   | (1,612      | ) |  |   | 26      |   |  | -2  | %
|Losses from unconsolidated investments        |      |                             | (2,210 | )    |        |   | (1,643      | ) |  |   | (567    | ) |  | 35  | %
|                                              |      |                             |        |      |        |   |             |   |  |   |         |   |  |     |  
|                                              |      | $                           | 1,538  |      |        | $ | 3,969       |   |  | $ | (2,431  | ) |  | -61 | %
|                                              |      |                             |        |      |        |   |             |   |  |   |         |   |  |     |  

Investment Income, net

The decrease in investment income for the three months ended March 31, 2008 was due to a reallocation of the Companys investment portfolio. During the three months ended March 31, 2008, the
Companys funds were invested primarily in tax-free municipal obligations, as opposed to the prior year period where the funds were invested primarily in taxable instruments. These taxable investments yielded a higher return than the current
periods tax-free municipal obligations, therefore, the prior year periods investment income was higher.

Interest Income and Interest
Expense/Fees from Securities Lending

In August 2007, the Company limited its exposure to the high volatility in the credit markets
and ceased lending out additional securities. This resulted in a decline in interest income and interest expense from securities lending in the first quarter of 2008 compared to the same period last year. Despite the decrease in invested funds, the
Company was able to earn a higher net yield on its securities lending portfolio due to a higher average investment rate earned during the current quarter. The ratio of interest expense/fees to interest income will vary, as the Company is able to
negotiate better rates on its interest expense depending on whether the securities that it lends out are in greater demand.

Interest Expense

Interest expense for the three months ended March 31, 2008 was essentially the same compared to the same period last year.
Interest expense is comprised predominantly of interest the Company incurs on its long-term debt.

Losses from Unconsolidated Investments

The increase in losses from unconsolidated investments was principally attributable to higher losses from the Companys investment in
the Dubai Mercantile Exchange Limited (DME). On June 1, 2007, DME commenced trading and all costs incurred prior to that date were for the establishment of DME.



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Provision for Income Taxes

The Companys effective tax rate for the three months ended March 31, 2008 was 47.04% compared to 43.60% for the same period last year. The effective tax rate for the quarter was negatively impacted by
non-deductible compensation under section 162(m) of the Internal Revenue Code and non-deductible business combination expenses related to the Merger Agreement.

Financial Condition and Cash Flows

Liquidity and Capital Resources

At March 31, 2008 and December 31, 2007, the Company had $557.5 million and $464.4 million, respectively, in cash and cash equivalents and
marketable securities. Working capital at March 31, 2008 and December 31, 2007 was $526.1 million and $474.0 million, respectively. The Company has a long-term AA+ and a short-term A-1+ counter-party credit rating from
Standard & Poors Rating Services that was initially obtained in April 2003 and sustained through a ratings review in September 2006.

Sources and Uses of Cash

The following table is a summary of significant cash flow categories for the three months
ended March 31, 2008 and 2007:



|                                          |      |                |         |      |  |   |          |  
|----------------------------------------- | ---- | -------------- | ------- | ---- |  | - | -------- | -
|                                          |      | March 31,      |        
|                                          | 2008 |                |         | 2007 | 
|                                          |      | (in thousands) |        
|Net cash flow provided by (used in):      |      |                |         |      |  |   |          |  
|Operating activities                      |      | $              | 24,368  |      |  | $ | 80,674   |  
|Investing activities                      |      |                | 3,564   |      |  |   | 204,760  |  
|Financing activities                      |      |                | (28,597 | )    |  |   | (288,042 | )
|                                          |      |                |         |      |  |   |          |  
|Net decrease in cash and cash equivalents |      | $              | (665    | )    |  | $ | (2,608   | )
|                                          |      |                |         |      |  |   |          |  

Net cash provided by operating activities for the three months ended March 31, 2008 was $24.4
million, a decrease of $56.3 million compared to the same period last year. The decrease was principally attributable to a transfer of cash, as the Company invested $93.7 million into marketable securities during the current year period. Excluding
the investment of cash into marketable securities, net cash from operations would have increased during the current quarter due to higher net income and a corresponding increase in income taxes payable.

Under its securities lending program, JPMorgan Chase Bank, N.A. (JPMorgan), as agent for the Company, lends on an overnight basis, a portion
of the clearing members securities on deposit in the Companys margin deposits and guaranty fund to third parties in return for cash collateral. JPMorgan, in turn, invests the cash collateral in various investments on behalf of the
Company, in accordance with the programs investment guidelines. The Company receives the benefits, and bears the risks, of such investments. The cash collateral received is recorded as a liability and presented in financing activities on the
Companys condensed consolidated statements of cash flows. The corresponding investment is recorded as an asset, and its purchases and redemptions are presented in investing activities on the Companys unaudited condensed consolidated
statements of cash flows.

Net cash used in investing activities for the three months ended March 31, 2008, exclusive of securities
purchased under the securities lending program, was $16.6 million, a decrease of $66.3 million compared to the same period last year. This decrease was due primarily to reduced investments in unconsolidated entities during the current year period.
The Company invested approximately $12.7 million in IMAREX ASA and the DME during the current year period as opposed to its investment of approximately $78 million in Montréal Exchange in the prior year period (see Note 7 to the unaudited
condensed consolidated financial statements).



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Net cash used in financing activities for the three months ended March 31, 2008, exclusive of cash
received under the securities lending program, was $8.4 million, an increase of $8.1 million compared to the same period last year. This increase is attributable to cash dividends paid to the Companys stockholders totaling $9.4 million offset,
in part, by proceeds of $0.8 million received from the exercise of employee stock option awards.

The Company believes that its cash flows
from operations and existing working capital will be sufficient to meet its needs for the foreseeable future, including capital expenditures, debt service and dividends. Subject to certain limitations under existing long-term note agreements, the
Company has the ability, and may seek to raise capital through the issuance of debt or equity in the private and public capital markets.

Investment
Policy

The Company maintains cash and short-term investments in an amount sufficient to meet its working capital requirements. The
Companys investment policies are designed to maintain a high degree of liquidity, emphasizing safety of principal and total after-tax return. Excess cash on hand is generally invested overnight in short-term marketable securities. Cash that is
not required to meet daily working capital requirements is invested primarily in high-grade tax-exempt municipal bonds and obligations of the U.S. government and its agencies. The Company also invests in equity securities. Investments in the
securities lending program are generally invested in corporate debt securities. At March 31, 2008 and December 31, 2007, cash and investments were as follows:



|                                           |  |                |           |                  |   |          
|------------------------------------------ |  | -------------- | --------- | ---------------- | - | ---------
|                                           |  | March 31,2008  |           | December 31,2007
|                                           |  | (in thousands)
|Cash and cash equivalents                  |  | $              | 2,631     |                  | $ | 3,296    
|Collateral from securities lending program |  |                | 819,618   |                  |   | 842,444  
|Marketable securities                      |  |                | 554,822   |                  |   | 461,142  
|                                           |  |                |           |                  |   |          
|                                           |  | $              | 1,377,071 |                  | $ | 1,306,882
|                                           |  |                |           |                  |   |          

Included in marketable securities at March 31, 2008 are investments totaling $12.1 million
relating to the COMEX Division Members Recognition and Retention Plan (MRRP) (see Note 10 to the unaudited condensed consolidated financial statements).

Also, included in marketable securities are investments that are pledged as collateral with one of the Companys investment managers relating to a membership seat financing program (see Note 19 to the unaudited
condensed consolidated financial statements).

The Company is required, under the Commodity Exchange Act, to maintain separate accounts for
cash and securities that are deposited by clearing members, at banks approved by the Company, as margin for house and customer accounts. These margin deposits are used by members to meet their obligations to the Company for margin requirements on
open futures and options positions, as well as delivery obligations. In addition, each clearing member firm is required to maintain a security deposit, in the form of cash or U.S. Treasury securities with a maturity of ten years or less or shares of
certain approved money market mutual funds, of a minimum of $2.5 million in the Guaranty Fund. The Guaranty Fund may be used for any loss sustained by the Company as a result of the failure of a clearing member to discharge its obligations on the
NYMEX Division or COMEX Division. The Company is entitled to earn interest on cash balances posted as margin deposits and Guaranty Funds. Such balances are included in the Companys condensed consolidated balance sheets, and are generally
invested overnight in cash and securities purchased under agreements to resell. The table in Note 5 to the unaudited condensed consolidated financial statements sets forth margin deposits and Guaranty Fund balances held by the Company on behalf of
clearing members at March 31, 2008 and December 31, 2007.

Under the securities lending program, JPMorgan, as agent, lends on an
overnight basis, a portion of the clearing members securities on deposit in the Companys margin deposits and guaranty fund to third parties in



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return for cash collateral. JPMorgan, in turn, invests the cash collateral in various investments on behalf of the Company, in accordance with the
programs investment guidelines. The Company receives the benefits, and bears the risks, of such investments (see Note 2 to the unaudited condensed consolidated financial statements).

Future Cash Requirements

In connection with its
operating activities, the Company enters into certain contractual obligations. The Companys material contractual cash obligations include long-term debt, a technology services agreement, operating leases and other contracts. A summary of the
Companys minimum required future cash payments associated with its contractual cash obligations outstanding as of March 31, 2008, as well as an estimate of the timing in which these commitments are expected to expire, are set forth in the
following table:



|                              |  |                        |        |      |   |        |  |      |        |      |   |            |  |       |        |  |   |        |  |   |        
|----------------------------- |  | ---------------------- | ------ | ---- | - | ------ |  | ---- | ------ | ---- | - | ---------- |  | ----- | ------ |  | - | ------ |  | - | -------
|                              |  | Payments Due by Period
|                              |  | 2008                   |        | 2009 |   | 2010   |  | 2011 |        | 2012 |   | Thereafter |  | Total
|                              |  | (in thousands)        
|Contractual Obligations       |  |                        |        |      |   |        |  |      |        |      |   |            |  |       |        |  |   |        |  |   |        
|Long-term debt principal      |  | $                      | 2,817  |      | $ | 2,817  |  | $    | 2,817  |      | $ | 7,739      |  | $     | 4,909  |  | $ | 59,182 |  | $ | 80,281 
|Long-term debt interest       |  |                        | 6,205  |      |   | 5,994  |  |      | 5,783  |      |   | 5,573      |  |       | 4,980  |  |   | 31,233 |  |   | 59,768 
|Services agreements1          |  |                        | 7,760  |      |   | 10,295 |  |      | 11,571 |      |   | 30,948     |  |       |       |  |   |       |  |   | 60,574 
|Operating leasesfacilities   |  |                        | 2,253  |      |   | 3,027  |  |      | 3,306  |      |   | 3,585      |  |       | 2,051  |  |   | 136    |  |   | 14,358 
|Operating leasesequipment    |  |                        | 1,677  |      |   | 1,408  |  |      | 540    |      |   |           |  |       |       |  |   |       |  |   | 3,625  
|Other long-term obligations   |  |                        | 973    |      |   | 1,041  |  |      | 967    |      |   | 800        |  |       | 800    |  |   | 5,247  |  |   | 9,828  
|                              |  |                        |        |      |   |        |  |      |        |      |   |            |  |       |        |  |   |        |  |   |        
|Total contractual obligations |  | $                      | 21,685 |      | $ | 24,582 |  | $    | 24,984 |      | $ | 48,645     |  | $     | 12,740 |  | $ | 95,798 |  | $ | 228,434
|                              |  |                        |        |      |   |        |  |      |        |      |   |            |  |       |        |  |   |        |  |   |        



|1 | Services agreements include required minimum payments in accordance with the CME Agreement (see Note 11 to the unaudited condensed consolidated financial statements). The CME
Agreement has a ten-year term from the launch date with rolling three-year extensions. Either party may elect to terminate the CME Agreement between the fifth and the sixth year anniversary of the first launch date upon written notice and payment of
a termination fee. As a result, the Companys current minimum obligation under the CME Agreement is for remaining payments through year five. As such, the Contractual Obligations table above sets forth the Companys minimum obligation
remaining through year five, including the related termination fee in the event the Company elects to terminate the CME Agreement. In addition, the services agreements category includes employment agreements as filed with the SEC.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Company has unrecognized tax benefits, including interest, of approximately $3.5 million, net of tax effect, as of
March 31, 2008. The Company is subject to periodic examinations of its income tax returns by the U.S. Internal Revenue Service and various state and local taxing authorities, which could result in future tax liabilities, the payment of which
would offset the current unrecognized tax benefits. Due to the uncertainty of the outcome of any future income tax examinations, it is not possible to estimate when tax payments, if any, would be made.

In 1995, the Company secured a grant of $128.7 million from the New York City Economic Development Corporation (EDC) and the Empire State
Development Corporation (ESDC, formerly known as the New York State Urban Development Corporation) for construction of its corporate headquarters and trading facility. The grant is being recognized in income on the same basis as, and is
a reduction to, the depreciation of the facility. The Company is liable for liquidating damages on a declining scale, currently at $25 million, if it violates terms of the occupancy agreement at any time prior to the 15 years from the date of
occupancy, July 7, 1997.

The Companys senior notes are subject to a prepayment penalty in the event they are paid off prior to
their scheduled maturities. The Company believes that any economic benefits derived from early redemption of these notes would be offset by the redemption penalty. These notes place certain limitations on the Companys ability to incur
additional indebtedness.



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In accordance with the DME shareholders agreement, the Company is required to contribute capital to the
joint venture in an aggregate amount of $9.8 million over a five-year period, contingent upon the DMEs achievement of certain agreed upon performance targets. At March 31, 2008, the Company had contributed a total of $8.0 million.

Section 311(G) of the Bylaws of NYMEX Exchange provides for a revenue sharing
arrangement with the owners of Class A memberships in NYMEX Exchange in the event that either: (i) NYMEX Exchange determines to terminate permanently all open outcry floor trading for a specified list of products on the NYMEX Exchange and
instead lists such products for electronic trading only; or (ii) a shift occurs whereby at least 90% of the contract volume of such NYMEX Exchange product results from electronic trading. Once triggered for a particular product, the
obligation under the revenue sharing arrangement consists of the greater of the following amounts: (i) 10% of the gross NYMEX Exchange revenues attributable to all revenue from the electronic trading of such applicable NYMEX Exchange product,
but not including market data fees or revenues from bilateral transactions cleared through NYMEX ClearPort® Clearing (or its successor); or 100% of the revenue from any additional special
fee or surcharge that may be imposed by NYMEX Exchange on the transaction fees applicable to the electronic trading of such applicable NYMEX Exchange product. Once triggered, Bylaw Section 311(G) requires this revenue stream continue in
perpetuity or until NYMEX Exchange no longer lists such product for electronic trading. NYMEX Exchange has determined that a shift will have occurred for any applicable NYMEX Exchange product following the end of two consecutive fiscal
quarters in which, during each quarter, the average quarterly electronic trading volume has equaled or exceeded 90% of the contract volume in such product. Thereafter, revenues that are generated from the electronic trading of such product will
begin to accrue and will be paid to the owners of Class A memberships in NYMEX Exchange on a quarterly basis consistent with the financial reporting schedule of NYMEX Holdings. In accordance with the NYMEX Exchange Bylaws, such determination
may be subject to challenge by owners of Class A memberships in NYMEX Exchange through an arbitration.

Other Matters

In February 2004, the Commodity Futures Trading Commission (CFTC) issued an order requiring, among other things, that the Company establish
and maintain a permanent retail customer protection mechanism supported by a commitment of not less than $10 million, which must be available at all times to reimburse retail customers trading on the Exchange whose original margin might be lost in
the default of another customer of their clearing member. The Company has established the retail customer protection mechanism. Based on historical patterns, the Company believes that the likelihood of a default that would require reimbursement
under this mechanism is remote. Therefore, the Company has not established, and does not expect in the future to establish, a liability related to this commitment.

Responsibility for Financial Reporting

The Companys management is responsible for the preparation, integrity and
objectivity of the unaudited condensed consolidated financial statements and related notes, and the other financial information contained in this Quarterly Report on Form 10-Q. Such financial statements have been prepared in accordance with U.S.
generally accepted accounting principles and are considered by management to present fairly the Companys consolidated financial position, results of operations and cash flows. These unaudited condensed consolidated financial statements include
certain amounts that are based on managements estimates and judgments, giving due consideration to materiality.

Critical Accounting Policies

The Companys significant accounting policies, which include managements best estimates and judgments, are included in Note 2 of
the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2007. Certain of these accounting policies are considered critical as disclosed in the Critical Accounting Policies section of
Managements Discussion and Analysis in the Companys 2007 Annual Report



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on Form 10-K because of the potential for a significant impact on the financial statements due to the inherent uncertainty in such estimates. Other than the
adoption of SFAS No. 157, as discussed below, there have been no significant changes in the Companys critical accounting policies since December 31, 2007.

Fair Value Measurements

On January 1, 2008, the Company adopted SFAS No. 157, which establishes
a consistent framework for measuring fair value and expands the disclosures on fair value measurements. SFAS No. 157 establishes a fair value hierarchy which requires an entity to utilize valuation techniques that maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. SFAS No. 157 describes three levels of inputs to valuation techniques that may be used to measure fair value (see Note 3 to the condensed consolidated financial
statements).

Financial assets are considered Level 3 when their fair values are determined using pricing models with at least one
significant input or assumption is unobservable. The Companys Level 3 securities represent certain illiquid investments associated with the securities lending program and primarily include medium term bank notes and certain asset-backed
securities for which there is limited market activity. At March 31, 2008, the fair value of these securities were based on internally developed models that incorporate company assumptions on the expected timing of cash flows, credit spreads and
liquidity adjustments. This represents the Companys best estimate of exit price as defined by SFAS No. 157.

On
January 1, 2008, the Company had $842.4 million invested under the securities lending program, which are predominately comprised of investments valued using Level 2 inputs. The amount of securities in the securities lending program valued
using Level 3 inputs declined during the current quarter by approximately $64.5 million since the Company identified observable inputs for these securities. At March 31, 2008, $93.6 million of the corporate debt securities associated with the
securities lending program remained classified in Level 3 (approximately 11.4% of the Companys collateral from securities lending program) as the securities contained at least one significant input which was unobservable. There were no
purchases or sales of securities lending program investments during the three months ended March 31, 2008.



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##### Table of Contents

|Item 3. | Quantitative and Qualitative Disclosures about Market Risk
|------- | ----------------------------------------------------------

The table below provides information about the Companys marketable securities (excluding equity and short-term debt securities) and long-term debt including expected principal and interest cash flows for the
years 2008 through 2012 and thereafter. The marketable securities are classified as trading.

Principal Amounts by Expected Maturity

At March 31, 2008

(in thousands)



|                |  |           |         |          |   |        |  |                             |         |  |      |  
|--------------- |  | --------- | ------- | -------- | - | ------ |  | --------------------------- | ------- |  | ---- | -
|Year            |  | Principal |         | Interest |   | Total  |  | WeightedAverageInterestRate |        
|Assets          |  |           |         |          |   |        |  |                             |         |  |      |  
|Debt Securities |  |           |         |          |   |        |  |                             |         |  |      |  
|2008            |  | $         | 283,028 |          | $ | 5,637  |  | $                           | 288,665 |  | 0.80 | %
|2009            |  |           | 559,161 |          |   | 2,098  |  |                             | 561,259 |  | 4.55 | %
|2010            |  |           | 205     |          |   | 442    |  |                             | 647     |  | 4.59 | %
|2011            |  |           | 70      |          |   | 376    |  |                             | 446     |  | 4.61 | %
|2012            |  |           | 315     |          |   | 334    |  |                             | 649     |  | 4.61 | %
|Thereafter      |  |           | 4,749   |          |   | 4,196  |  |                             | 8,945   |  | 4.93 | %
|                |  |           |         |          |   |        |  |                             |         |  |      |  
|Total           |  | $         | 847,528 |          | $ | 13,083 |  | $                           | 860,611 |  |      |  
|                |  |           |         |          |   |        |  |                             |         |  |      |  
|                |  |           |         |         
|Liabilities     |  |           |         |          |   |        |  |                             |         |  |      |  
|Corporate Debt  |  |           |         |          |   |        |  |                             |         |  |      |  
|2008            |  | $         | 2,817   |          | $ | 6,205  |  | $                           | 9,022   |  | 7.73 | %
|2009            |  |           | 2,817   |          |   | 5,994  |  |                             | 8,811   |  | 7.74 | %
|2010            |  |           | 2,817   |          |   | 5,783  |  |                             | 8,600   |  | 7.75 | %
|2011            |  |           | 7,739   |          |   | 5,573  |  |                             | 13,312  |  | 7.76 | %
|2012            |  |           | 4,909   |          |   | 4,980  |  |                             | 9,889   |  | 7.77 | %
|Thereafter      |  |           | 59,182  |          |   | 31,233 |  |                             | 90,415  |  | 7.79 | %
|                |  |           |         |          |   |        |  |                             |         |  |      |  
|Total           |  | $         | 80,281  |          | $ | 59,768 |  | $                           | 140,049 |  |      |  
|                |  |           |         |          |   |        |  |                             |         |  |      |  

Interest Rate Risk

Current Assets

The Companys investment income consists primarily of interest income and realized and
unrealized gains and losses on the market values of its investments. Given the composition of its investment portfolio, the Companys investment income is highly sensitive to fluctuation in interest rates. Investment income for the three months
ended March 31, 2008 was $3.6 million compared to $6.7 million for the same period last year. The fair value of the Companys marketable securities, including equity and short-term debt securities was $554.8 million March 31, 2008.
The Company believes that a hypothetical change in the interest rate of 100 basis points would not have a material impact on its consolidated results of operations, financial condition or cash flows.

Debt

The weighted average interest rate on
the Companys long-term debt is 7.77%. The debt contains a redemption premium, the amount of which varies with changes in interest rates. Therefore, the fair value of the Companys long-term debt is highly sensitive to changes in interest
rates. Although the fair value of the debt will fluctuate with interest rates, the Companys interest expense will not vary with changes in market interest rates if



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the debt is paid off in accordance with stated principal repayment schedules. As of the date of this report, the Company does not expect to pay down any
series of its long-term debt prior to stated maturities. However, the Company may pursue future financing strategies that involve early repayment of its current debt, or issuance of new debt, potentially increasing its sensitivity to changes in
interest rates.

Credit Risk

NYMEX Division bylaws authorize its board of directors to fix the annual dues of the owners of the Class A memberships and to levy assessments as it determines to be necessary. Such dues and assessments are payable at such time as
NYMEX Divisions board of directors may determine. NYMEX Divisions board of directors may waive the payment of dues by all owners of Class A memberships or by individual members as it determines. COMEX Division bylaws provide its
board of directors with similar powers relating to dues, assessments and fees with respect to COMEX Division memberships. The board may levy such assessments upon each owner of a COMEX Division membership as it determines, but in no greater amount
than those imposed on each owner of a Class A membership in NYMEX Exchange.

The Exchange, as a self-regulatory organization, has
instituted detailed risk-management policies and procedures to guard against default risk with respect to contracts traded and/or cleared on the Exchange. In order to manage the risk of financial non-performance, the Exchange: (i) has
established that clearing members maintain at least $5 million in minimum working capital; (ii) limits the number of net open contracts that can be held by any clearing member, based upon that clearing members capital; (iii) requires
clearing members to post original margin collateral for all open positions, and to collect original margin from their customers; (iv) pays and collects variation margin on a marked-to-market basis at least twice daily; (v) requires
clearing members to collect variation margin from their customers; (vi) requires deposits to the Guaranty Fund from clearing members which would be available to cover financial non-performance; and (vii) has broad assessment authority to
recoup financial losses. The Exchange also maintains extensive surveillance and compliance operations and procedures to monitor and enforce compliance with rules pertaining to the trading, position sizes, delivery obligations and financial condition
of members. In addition, NYMEX Division clearing members, as all NYMEX Division member firms, must each own and hold 150,000 shares of common stock of NYMEX Holdings and two Class A memberships in NYMEX Exchange. The COMEX Division clearing
member firms, as all COMEX Division member firms, must each pledge two COMEX Division memberships.

As part of the Exchanges powers
and procedures designed to support contract obligations in the event that a contract default occurs, the Exchange may levy assessments on any of its clearing members if, after a default by another clearing member, there are insufficient funds
available to cover a deficit. The maximum assessment on each clearing member firm is the lesser of $30 million or 40% of such clearing member firms modified regulatory capital as reported periodically to the Exchange.

Despite the Companys authority to levy assessments or impose fees, there can be no assurance that the relevant members will have the financial
resources available to pay, or will not choose to be expelled from membership rather than pay, any dues, fees or assessments. The Company believes that assessment liabilities of a member arising prior to expulsion are contractual in nature and,
accordingly, survive expulsion. In addition, the Exchange would have recourse to such member and the proceeds from the Companys sale of such members collateral would apply towards any outstanding obligations to the Exchange of such
member. Recourse to a members collateral, however, may not be of material value in the case of large defaults that result in assessments greater in value than the collateral, particularly when the collaterals value declines markedly in
price as a consequence of the default.

Moreover, despite the risk mitigation techniques adopted by, and other powers and procedures
implemented by the Company, which are designed to, among other things, minimize the potential risks associated with the occurrence of contract defaults on the Company, there can be no assurance that these powers and procedures will prevent contract
defaults or will otherwise function to preserve the liquidity of the Company.



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|Item 4. | Controls and Procedures
|------- | -----------------------



|(a) | Evaluation of Disclosure Controls and Procedures. The Companys Principal Executive Officer and Principal Financial Officer, after evaluating the effectiveness of the
Companys disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this Quarterly
Report on Form 10-Q, have concluded that, based on such evaluation, the Companys disclosure controls and procedures were effective in reporting, on a timely basis, information required to be disclosed by the Company in the reports that the
Company files or submits under the Exchange Act, and this Quarterly Report on Form 10-Q.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) | Changes in Internal Controls. There were no changes in the Companys internal control over financial reporting identified in connection with the evaluation of such
internal control that occurred during the Companys last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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PART II: OTHER INFORMATION



|Item 1. | Legal Proceedings
|------- | -----------------

Information
regarding legal proceedings is disclosed in Note 19 to the unaudited condensed consolidated financial statements under the subheading Legal Proceedings. Such disclosure is incorporated herein by reference.



|Item 1A. | Risk Factors
|-------- | ------------

Other than the following updates,
there have been no material changes to the Risk Factors contained in the Companys Annual Report on Form 10-K for the year ended December 31, 2007, as filed with the SEC on March 3, 2008.

The Company and CME Group are parties to pending lawsuits in connection with the merger.

On March 17, 2008, Cataldo J. Capozza, a NYMEX Holdings shareholder and a former member on the NYMEX Exchange commenced a putative class action in
the Delaware Court of Chancery, on behalf of himself and all other NYMEX Holdings shareholders, against NYMEX Holdings, the members of its Board of Directors and CME Group. The complaint, which seeks to enjoin the Companys merger with CME
Group, alleges, among other things, that the directors breached their fiduciary duties to NYMEX Holdings shareholders by attempting to sell the Company for inadequate and unfair consideration and pursuant to an inadequate and unfair process,
and that CME Group aided and abetted such breaches. On April 21, 2008, the NYMEX Holdings and its directors moved to dismiss the complaint and to stay all discovery pending the disposition of the motion to dismiss. On April 14 and 15,
2008, respectively, two additional putative class actions were commenced in the Delaware Court of Chancery by Polly Winters and Joan Haedrich, both NYMEX Holdings shareholders, on behalf of themselves and all other NYMEX Holdings shareholders,
against the NYMEX Holdings, the members of its Board of Directors and CME Group. The Winters and Haedrich complaints contain allegations virtually identical to those in the Capozza action (discussed above). NYMEX Holdings and its directors have not
yet responded to the Winters and Haedrich complaints. NYMEX Holdings and CME Group intend to defend vigorously against these allegations.

Completion
of the merger is subject a number of closing conditions that could delay completion of the merger or impose conditions that could have a material adverse effect on the Company or that could cause abandonment of the merger.

The merger is subject to a number of closing conditions, including, but not limited to, (i) approval of the stockholders of the Company,
(ii) approval of the stockholders of CME Group of (A) an amendment to CME Groups Charter and (B) the issuance of CME Groups shares in connection with the merger, (iii) acceptance of the offer to purchase one hundred
percent (100%) of the outstanding Class A memberships in NYMEX Exchange from the holders thereof for an aggregate purchase price not to exceed $500 million, or approximately $612,000 per Class A membership in NYMEX Exchange and
approval of an Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws of NYMEX Exchange, in each case, by holders of at least 75% of the outstanding Class A memberships in NYMEX Exchange, (iv) effectiveness of a
Form S-4 registration statement to be filed by CME Group, (v) receipt of certain regulatory approvals and (vi) receipt of an opinion that the merger will be treated as a tax-free reorganization. Such conditions may have the effect of
delaying completion of the merger, imposing additional costs on the merger or preventing the completion of the merger or causing the abandonment of the merger, any of which may have a material adverse effect on the Company.



|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds
|------- | -----------------------------------------------------------

On November 22, 2006, NYMEX Holdings completed an initial public offering (IPO) of its common stock. The common stock from this offering was registered under the Securities Act of 1933, as amended,



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pursuant to a Registration Statement on Form S-1 (File No. 333-135800) that was declared effective by the SEC on November 16, 2006. In connection
with this offering, NYMEX Holdings sold 5,390,000 shares of its common stock, and certain selling stockholders sold 1,110,000 shares of common stock held by them. In addition, NYMEX Holdings sold 975,000 shares of its common stock pursuant to the
underwriters full exercise of their over-allotment option. J.P. Morgan Securities Inc. and Merrill Lynch, Pierce Fenner & Smith Incorporated served as joint book-running managers, with Banc of America Securities LLC, Citigroup Global
Markets Inc., Lehman Brothers Inc. and Sandler ONeill & Partners, L.P. serving as co-managers.

The initial public offering
price was $59.00 per share. The Company did not receive any proceeds from the shares of common stock sold by the selling stockholders. Gross proceeds from the offering were approximately $375.5 million. Net proceeds the Company received, after
deducting underwriting discounts and commissions of approximately $27.6 million and direct costs of approximately $3.7 million, totaled approximately $344.2 million. Upon the completion of its IPO, a $10 million payment was made to owners of COMEX
Division memberships in accordance with the 1994 COMEX Merger.

In the first quarter of 2008, the Company used approximately $11.2 million
to acquire additional shares of IMAREX ASA and $1.5 million as an additional capital contribution to its investment in the DME. In 2007, the Company used approximately $163.5 million of the net proceeds to fund its long-term investments, the most
significant of which were the Companys investments in the Montréal Exchange, IMAREX ASA and Optionable, Inc. The Company intends to use the remaining funds for general corporate purposes, capital expenditures and working capital. The
Company may also use a portion of the funds to acquire or invest in businesses, technologies, products or services. The funds are currently invested in accordance with the Companys investment policies, predominantly in investment-grade
marketable debt securities and municipal bonds, until such time that they are needed.



|Item 3. | Defaults upon Senior Securities
|------- | -------------------------------

Not applicable



|Item 4. | Submission of Matters to a Vote of Security Holders
|------- | ---------------------------------------------------

Not applicable



|Item 5. | Other Information
|------- | -----------------

Not
applicable



|Item 6. | Exhibits
|------- | --------



|     |  |                                                                                                                                                                                                                                                                               
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2.1  |  | Agreement and Plan of Merger, dated as of March 17, 2008, among CME Group Inc., CMEG NY Inc., NYMEX Holdings, Inc. and New York Mercantile Exchange, Inc. (incorporated herein by
reference to Exhibit 2.1 to the Companys Current Report on Form 8-K, dated March 20, 2008).
|     | 
|10.1 |  | Change in Control Severance Plan (incorporated herein by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K, dated January 15, 2008).                                                                                                                      
|     | 
|31.1 |  | Certification of the Principal Executive Officer pursuant to § 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                         
|     | 
|31.2 |  | Certification of the Principal Financial Officer pursuant to § 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                         
|     | 
|32   |  | Certification of the Principal Executive Officer and Principal Financial Officer pursuant to § 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                         



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



NYMEX HOLDINGS, INC.By:

/s/    JAMES E.
NEWSOMEName:

James E. NewsomeTitle:

President & CEO(Principal Executive Officer)Date: May 12, 2008By:

/s/    KENNETH D.
SHIFRINName:

Kenneth D. ShifrinTitle:

Chief Financial Officer(Principal Financial Officer)Date: May 12, 2008




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