In response to market rumors, CME Group, Inc. and NYMEX Holdings, Inc. on Monday confirmed that they are engaged in preliminary discussions regarding CME Group's potential acquisition of NYMEX, according to a company report.

The parties have agreed to a 30-day exclusive negotiating period. Under the terms being discussed, shareholders of NYMEX would receive $36 in cash and 0.1323 of a share of CME Group's common stock (the exchange ratio), in exchange for each NYMEX share.

CME Group expects to maintain trading floors in the New York City metropolitan area. The potential transaction also contemplates that NYMEX will repurchase the 816 New York Mercantile Exchange memberships upon closing of the potential acquisition for an aggregate purchase price not to exceed $500 million.

Discussions are in early stages, company officials say. The terms of any potential transaction may be materially different from what is being discussed. The transaction remains subject to negotiation of other terms, completion of due diligence, negotiation of terms of a definitive agreement and approvals of the Boards of Directors of both companies.

There can be no assurances that any agreement will be reached or that a transaction will be completed on the terms set forth above or others, company officials add.

In response to market rumors, CME Group, Inc. and NYMEX Holdings, Inc. on Monday confirmed that they are engaged in preliminary discussions regarding CME Group's potential acquisition of NYMEX, according to a company report.