IPE vs Nymex crude volume

[jmreeve]

Doesn't sound like cooperation is on the cards reading that article.

Getting the spreads in place seems like a very good move and should help build liquidity.
They certainly seem to be doing all the right things at the moment.

 

[Directional]

now if only they could sort out their crummy java-based API and stablize their order matching system for peak demands

 

[Directional]

jmreeve,
whats the liquidity & quote depth like on the WTI further down the "curve" for want of a better term? (anyone know what the correct terminology?)

How far out is WTI quoted for, and whats the furthest dated contract that ICE are allowing for, if not currently quoting?

 

[TWI]

Getting There

This is very promising. Starting to be realistic about the day I don't get ticked by WTI pit traders.

 

[jmreeve]

I think this is one of the most successful launches I have ever seen.
Should reach 100K per day quite soon at the present rate of growth.

Does anyone know what is going on at NYMEX at the moment?
What are they doing to protect their market share and when are they going to go electronic?

 

[Directional]

check this out: Nymex floor traders contemplating a walkout

http://www.traderdaily.com/news/item/2632.html

 

[jmreeve]

The floor traders are revolting! :cheesy:

Goods news for ICE.
Who would want a position at NYMEX if your only means of exit might walk out at any monent.

 

[jmreeve]

NYMEX fights back.

NYMEX to list all products on CME globex for 24 hour trading.
http://www.nymex.com/press_releas.aspx?id=pr20060406a

A smart move but coming a bit late.
Should be interesting as it will dramatically increase access to the NYMEX contracts.

 

[Directional]

most interesting. Nymex have basically gone full circle listing their instruments on globex - it wasnt so long ago that they pulled their QM emiNY contract off globex and put it onto ACCESS. The resulting volume drop must have stung them enough to totally rethink that strategy.

Going the CME route is going to increase participant access significantly, and that is half of the battle. For the pro with the volume who have access to both ICE and CME - will it be the fee's that make the biggest difference? From what I can gather reading that press release, it looks like Nymex will be applying their exchange fee's to the contracts, so not necessarily going to be cheaper.

One of the reasons ICE is doing so well is that they are significantly cheaper to trade.

 

[Danger Field]

With the increased volume this will inevitably generate you can imagine there would be a second level to their campaign and that would be in the region of reducing fees. A mop up operation. All of this is good news for us of course.

 

[jmreeve]

I think NYMEX has made this move to eliminate CME as a future competitor and to rapidly give them access to a large pool of electronic traders. They have obviously realised this is vital if they are going to keep a hold of these contracts. Once they have shored up the volume they will probably go on the offensive with fees.
Quite a neat tactical move given their current position.

I think NYMEX is likely to end up with the biggest volume on the major contracts, however ICE still has an advantage in being able to offer specialist and OTC contracts to the energy industry.

 

[jmreeve]

Now broken the 150K mark so volume >50% of NYMEX volume.

https://www.theice.com/showpr.jhtml?id=2370

 

[TWI]

I have started trading on ICE rather than Nymex. The speed of transaction slippage savings are substantial. NYMEX have really been behind the curve on this, will wait to see how quickly Globex trading takes volume from the pit when it kicks of on June 13th.

 

[minx]

I have started trading on ICE rather than Nymex. The speed of transaction slippage savings are substantial. NYMEX have really been behind the curve on this, will wait to see how quickly Globex trading takes volume from the pit when it kicks of on June 13th.

Trading thru the Pits is just a pain in the a r s e, I've waited 2 hours for fill confirmations in NYBoT Sugar and I've had crazy slippage in Soybeans and Wheat, not to mention the obvious Coffee, Cotton and OJ but at least thats just because they are much thinner markets. These days I only trade commodities if I can do them electronically.

 

[ERA]

One thing that this move will make a lot easier is spreading Brent against WTI, I have always watched this spread with interest, but the NYMEX execution times have made it difficult to take advantage of this interesting trade.

 

[Directional]

ICE have launched a WTI Brent spread contract so you can trade the spread itself as a quoted market

 

[TWI]

minx,

If I go to commodity pits, I just try to use limit orders as much as I can.

ERA

I am looking forward to electronic spark spreads. Once Nymex goes to CME will be interesting to see if there are ticks to be taken from calendar spreads in early days.

 

[ERA]

tw,

Sparks are a bit to complicated for me, I've always been $hit scared of Electricity :idea:

I'd be interested to hear your general set up for those and what exactly you are looking out , to me there are just to many price relationships to watch at once. It's definitely not a topic i've ever seen on any of the boards, make a welcome change.

era

 

[TWI]

Did I say spark, I actually meant cracks, just happened to be talkeing to a power trader about sparks on IM while typing the last message.
You are right , sparks are very volatile and power vs. nat gas spreads are certainly not for faint hearted.
One of the things to look out for is the building correlation between US NG and UK Gas, this is a good candiate for convergence as there is an increasingly important market growing in European delivered and US delivered LNG which will, over the next few years correlate these markets basis a freight spread.

 

[jmreeve]

Is any one auto-trading these markets?

Am looking at it but am concerned that there is so much structural change going on
at the moment that is not worth while.