IPE vs Nymex crude volume

[TWI]

I autotrade the nymex mini crude. Have not had problems to date. Looking forward to switch over to big ones once they get onto CME.

 

[jmreeve]

I am waiting for it to get up and running on CME.
Think this is going to be a very active contract once it gets going.

 

[Directional]

CME have just released details of exchange fee's for the electronically listed Nymex contracts:
http://www.nymex.com/globex_fees.aspx

Starting from a stiff $1.50 a side for non-members!

 

[TWI]

I have been doing all my WTI on ICE for the past few weeks, it has been a breath of fresh air compared to dealing in the Nymex pit. The volume is excellent and I feel I am taking far less slip as a result. Also spread depth is great and volume there is superb.

 

[jmreeve]

CME have just released details of exchange fee's for the electronically listed Nymex contracts:
http://www.nymex.com/globex_fees.aspx

Starting from a stiff $1.50 a side for non-members!

And a big fat $2.60 for the full sized nat gas contract!

Now that they can't skrew people in the pits it looks like they are going to try to do it with fees instead. All good news for the ICE.

 

[TWI]

If you trade NatGas then $2.60 cost will likely be the least of your worries. Slip will far eclipse this figure, it is a really hairy execution deal there, hope the platform can sharpen it up a little.

 

[Directional]

NYMEX Europe Ltd to Offer Full Electronic Trading

The board of directors of NYMEX Europe has voted to offer its Brent crude oil and Northwest gasoil futures contracts solely for electronic trading on CME Globex® beginning on June 11, for trade June 12.
It is anticipated that the open outcry trading floor in Europe will close on June 9.

The final settlement price for the NYMEX Europe Brent crude oil futures contract will converge with the ICE Brent Index at the conclusion of trading. These changes are subject to final regulatory discussions with
the Financial Services Authority.

Sorry to hear the floor in London didnt work out - the guys I met up there who got involved on that floor are good guys - I wish them all the best for whatever their plans are next.

 

[jmreeve]

Has anyone sorted out how to get data for these globex traded energy contracts?
Have a NYMEX and CME level1 feed but not sure which the data will be sent on.

Have talked to two data vendors neither of which were even aware that these contracts
were being listed. Also talked someone at both CME and NYMEX and they were not sure either.
Sometimes find the general level of incompetence in the financial services industry is just shocking.

 

[TWI]

Sometimes find the general level of incompetence in the financial services industry is just shocking

It is because all they care about in the support world is going out and getting lashed from Thursday to Sunday and telling their collegues how *****d they were for the rest of the week. Asking questions of them is inconvienient right now as they as too busy reading about Rooney in the Sun while sat on the sh*tter

 

[jmreeve]

New contract on the CME does not seem to have eaten into ICE WTI volume.
Only 10K done yesterday on the WS front month which is a poor start and less
than I was expecting given the number of traders using Globex.

Looks like ICE is still the best place to trade WTI at the moment.

 

[Directional]

I wonder if its anything to do with the CME stuff being cash settled and non-fungible with the deliverable contracts, if I read the specs right? CME electronic WTI deliverable contracts are scheduled for an unspecified release later in the year

IPE WTI is all deliverable because they merged it with their OTC stuff

 

[holy man]

cme/nymex promised us between 30/40 market makers & so far i see less than 3 and they appear to be simply mirroring ICE quotes.............
also contract is far too expensive in comparison to ICE .........
I expect that things will change,but until they do then ICE will keep upper hand.

 

[jmreeve]

NYMEX/CME do seem to have botched the introduction of these contracts.
There is now so much business done on ICE that NYMEX may have lost this contract
for good.

 

[TWI]

Will not be til nov that elec & pit nymex contracts are fungible. What a screw up.
I am sticking with ICE or now.

 

[Directional]

the lack of inter-fungibility means that there can be no arb between the pit and the screen surely, and I'd imagine thats where the potential for at least some extra liquidity would be for Nymex

 

[Directional]

we're several weeks into the launch of the Nymex electronic futures - any updates on what sort of volume globex is turning for these WTI contracts? this data doesnt seem to be available on the CME website

 

[jmreeve]

You can get data on the NYMEX website for the new contracts.

Volume has been pretty feeble at about 7000 contracts per day.
Think the high fees have put people off.
Much more business done on ICE for the full size WTI.

The mini crude is doing quite well on Globex though with about 70K
contracts traded a day.

 

[TWI]

I pay $2.37/lot on Nymex (although so far TS charged me $6.99 cos they have not worked out there is electronic market yet..) . I still do most of my volume on ICE, seems to be more liquid.

 

[jmreeve]

Has NYMEX now lost it's WTI crude business?

Not much volume in the pits and nothing on the new Globex contracts.
The mini seems fairly active but no where near the volume on ICE which
was just short of 150K contracts yesterday. The most liquid market for WTI
is now clearly the ICE.

Seems it may also lose it's gold business as CBOT is slowly building volume and has now
reached critical mass.

With NYMEX losing a large amount of business in two of it's biggest markets the future does
not seem to rosy for the exchange.

 

[minx]

With NYMEX losing a large amount of business in two of it's biggest markets the future does
not seem to rosy for the exchange.

All I can say is I bloody hope they lose the lot, NYBoT too. Backward, arrogant, closed shop robbing b**tards. Bring on electronic trading!!

On that note, the e-CBoT Agris are looking good, corn is 300x300 with a 1 tick spread, wheat and soy are a bit thinner but definitely worth trading. Meal, oil, oats and Rice arent quite so good but its early days yet........ Viva la revolucion!!