MSN MoneyCentral – Pushing to attract more hedge fund business amid growing competition, the New York Mercantile Exchange is opening membership to the funds and other traders it has previouslybarred.

Market participants say the move is in response to a dramatic increase in hedge fund activity in energy markets in recent years. Broadening the member base would also increase demand and, thus, prices for Nymex seats and shares ahead of a planned initial public offering this year.

Following a board meeting late Tuesday, Nymex said it will allow “non-traditional entities, including hedge funds and pools, and other collective investment vehicles” to become members.

The exchange also plans to speed applications for potential members who won’t have a presence on Nymex’s floor, where traders shout buy and sell orders.

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