MGEX completes change in corporate structure

by World Grain Staff
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MINNEAPOLIS, MINNESOTA, U.S. — MGEX, a designated contract market (DCM) and derivatives clearing organization (DCO), announced on Sept. 22 the completed merger of the Minneapolis Grain Exchange, a Minnesota corporation and Minneapolis Grain Exchange, Inc., a Delaware corporation. The Exchange’s DCM and DCO registrations as well as all listed contracts and existing open positions have been transferred to the new Delaware-based corporation.

The merger and transfers resulted in Minneapolis Grain Exchange, Inc. as the surviving corporation. All necessary legal filings with both Delaware and Minnesota are complete. Minneapolis Grain Exchange, Inc., now a for-profit corporation, will use the current MGEX name and operate from the exchange’s Minneapolis offices.

The order of transfer of the DCO registration to MGEX includes the transfer of all listed contracts and open interest, and does not affect the rights and obligations of market participants holding the positions. Nor does the transfer affect the execution, settlement and clearing of the MGEX listed contracts.

"MGEX is well positioned for growth and we look forward to expanding our business opportunities in order to maximize our potential," said Mark G. Bagan, president and chief executive officer. "This reincorporation provides additional means for our members to participate in this growth and expansion. I would again like to thank our board of directors for their leadership in this process and congratulate our membership on their new corporation."

The corporate structure change was first announced by the exchange on May 14, pending regulatory review and approval by the Commodity Futures Trading Commission. The reincorporation was unanimously approved by the MGEX board of directors and received a more than 98% approval from the MGEX membership in one of the largest authorized voter turnouts in MGEX’s 129-year history.

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