IPE vs Nymex crude volume
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Directional
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that is an incredible start for a new electronic market - obviously helped along by ICE's OTC WTI existing open interest that was merged with the new future market, but a definate *result* all the same!
WTG ICE WTI
jmreeve, any observations on how the volume has held up in subsequent days so far?
WTG ICE WTI
jmreeve, any observations on how the volume has held up in subsequent days so far?
Directional
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trouble is, Nymex electronic stuff is traded on Access, which the majority of traders dont have access to ironically. Thats why Nymex's QM emini volume fell over big time when they moved it off Globex onto Access..
jmreeve
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NYMEX is an expensive exchange to trade on with high data and trading fees.
Volume on WTI even better yesterday, almost 46K!
One problem with the ICE contract is that it is not physically settled but is settled against
the NYMEX price. This makes it more like a competitor for the NYMEX mini crude rather than
the big contract as prices are still set in the NY pits.
Hence, it is much less of a threat to NYMEX's volume that I first thought so they might decide after a review period to leave the contact pit traded during RTH. However, NYMEX must go fully electronic soon.
Volume on WTI even better yesterday, almost 46K!
One problem with the ICE contract is that it is not physically settled but is settled against
the NYMEX price. This makes it more like a competitor for the NYMEX mini crude rather than
the big contract as prices are still set in the NY pits.
Hence, it is much less of a threat to NYMEX's volume that I first thought so they might decide after a review period to leave the contact pit traded during RTH. However, NYMEX must go fully electronic soon.
Directional
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jmreeve said:
If I understand correctly, Nmyex's Brent contract is settled off the IPE's screen price
jimbo57 said:
yes, thats quite true - I'd expect access to Access would be commonplace fairly quick if Nymex went electronic on WTI
jmreeve
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I don't think NYMEX Brent does that much volume for the same reason ICE WTI is unlikely to;
commercials like to be able to phsically settle against the contract.
The bulk of the liquidity will probably remain in NY but ICE WTI should still be a viable contract.
commercials like to be able to phsically settle against the contract.
The bulk of the liquidity will probably remain in NY but ICE WTI should still be a viable contract.
well, taking the view very few contracts are ever taken to delivery, id say goodnight nymex wti. along with the guys i work with, we've rolled out of our open postions in america to roll them into wti ice if only to save margining costs.
i feel ACCESS sucks. and, unfortunately, whilst ICE is far from perfect and actually takes the **** with its clearing charges, it is the only WTI alternative at the moment which is cheaper than me sending orders into brokers in the pits......
also, its pretty damned obvious bp, shell and several of the big banks are backing the ice wti and i have no hesitation in predicting another dtb vs liffe bund scenario developing with the winner being ice in under a year.
i feel ACCESS sucks. and, unfortunately, whilst ICE is far from perfect and actually takes the **** with its clearing charges, it is the only WTI alternative at the moment which is cheaper than me sending orders into brokers in the pits......
also, its pretty damned obvious bp, shell and several of the big banks are backing the ice wti and i have no hesitation in predicting another dtb vs liffe bund scenario developing with the winner being ice in under a year.
jmreeve
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Delivery is only really useful for commercial hedgers but having hedgers helps to make a healthy market. I misread the ICE contract spec and reading it again I cannot see any reason why it should not be just as viable as the NYMEX market.
I guess what happens next depends on when/if NYMEX will make it's contract fully electronic.
I guess what happens next depends on when/if NYMEX will make it's contract fully electronic.
Directional
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impressive. Nymex are moving to offer side by side electronic trading, though its at an unspecified Q2 date. At this rate they wont have any WTI volume left.
Having said that, do you have access to comparable volume on Nymex? are ICE taking Nymex's volume visible through declining vol at Nymex? or is this new volume with Nymex seemingly doing the same sort of contracts as before?
Having said that, do you have access to comparable volume on Nymex? are ICE taking Nymex's volume visible through declining vol at Nymex? or is this new volume with Nymex seemingly doing the same sort of contracts as before?
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apparently ICE spoke to Nymex about the possiblity of buying Nymex out a few days ago!? or at least, making a sizeable offer for a stake, apparently worth double the General Atlantic offer.
I'm trying to find the article where I read this.
I'm trying to find the article where I read this.
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found it: http://www.traderdaily.com/news/item/2483.html
jmr, yeah - but I also noticed ICE are going to start quoting a WTI/Brent spread from the 9th of March and I heard talk of a crack spread contract when I was chatting with someone up at the exchange the other day - looks like they want to bring the spreads and liquidity inhouse for these products
jmr, yeah - but I also noticed ICE are going to start quoting a WTI/Brent spread from the 9th of March and I heard talk of a crack spread contract when I was chatting with someone up at the exchange the other day - looks like they want to bring the spreads and liquidity inhouse for these products
