ICE..getting too big for its boots?

[Pitscum]

Emissions....likely to be a nice little niche market. listed on the same platform as everything else ice does.....so, why does a round turn cost 8 euros? i rang the exchange to question why so much..their response? well, becasue the tick size is so big and that they were cheaper than the otc. so thats that then. on your way.......

 

[brentfutures]

Emissions....likely to be a nice little niche market. listed on the same platform as everything else ice does.....so, why does a round turn cost 8 euros? i rang the exchange to question why so much..their response? well, becasue the tick size is so big and that they were cheaper than the otc. so thats that then. on your way.......

mate in all fairness where else are you going to trade them, try a broker, see how much they charge... u tried trading the henry hub or other OTC products... ICE have market monopoly at the minute and the only way it is going to change is if nymex get there **** in gear and let the CME take it electronic onto globex..... then we will see ICE **** its pants as the CME Globex is the best electronic exchange in the world....it will bring about all new fee structures...

j

 

[TWI]

Commissions in the European Power and Gas markets have always been high, the brokers who are any good make more than a lot of the traders. If you trade a calendar 06 contract on german power for example it will cot you €438 in com. By comparison €8 for 1000mt 06 emissions seems pretty good.
Emissions has a good future I think although the politicians have every likelyhood of destroying it when the reality of the carbon reduction starts to bite. If however they stay out of the way then it will be a booming bull market for years to come.

 

[Directional]

whats the tick size in the emissions?

 

[charliechan]

if i fart - does that qualify me as a commercial with exchange privileges?

any one wanna take delivery???


ive got a pair of badly skid marked underwear/underlying going cheep too if youre interested.....


why wont they stand next to me on the nymex floor?




jungle fever!

 

[TWI]

€0.05 = €50.00 contract is 1000 mt of CO2 emissions. Daily volatility is around €0.75-1 so 1 contract is gonna swing around by ~€1000 per day.
Suggest if anybody gets involved you just buy dips. Still vast majority of volume is transacted OTC for higher comissions cos the continental commercial players like being taken out by the London brokers and don't care about paying some costs because their bonuses stink anyway. generally can pay a €0.05 premium to do an exchange swap.

 

[Directional]

if i fart - does that qualify me as a commercial with exchange privileges?

any one wanna take delivery???

ive got a pair of badly skid marked underwear/underlying going cheep too if youre interested.....

LOL! :cheesy:

I think i'll short that contract for your shorts CC..

TW - wow, directional outrights in emissions sounds quite an opportunity if you know what you're doing!?

 

[TWI]

Emission allowances are being reduced gradually and faster than the European energy infrastructure can evolve to cleaner fuels. Currently coal generation is the cheapest cost power so of course all the coal plants are belching out their filth to keep the lights on. This is not likely to change any time soon. Whenever there is a decreasing supply of something and a growing demand the price moves higher. So it will be with emissons but there is risk that the government of one or more countries will be lobbied by interest groups and decide to increase their own allocation, as happened in UK last year which lead to a temporary collapse of the emissions and cost some people their bonus.