New Nymex metals contracts - What's the point?

[Jack o'Clubs]

I can't see the point of the new NYMEX/Globex metals contracts that will be launched next week. I've had a look at the contract specs and gold and silver are identical to those already available from CBOT. Competition is all very well, but it can't be in traders' interests to have identical products just diluting liquidity across two exchanges can it? Or am I missing something?

 

[Directional]

Nymex/Comex metals contracts are the "original" metal futures.

CBOT have been taking their liquidity steadily since they got to the electronic market first.

Nymex, as usual, were late to the party taking the contract electronic, I wouldnt be surprised if they have lost the race on this one since traders will go where the liquidity is.

 

[TWI]

The base metals contracts will be very welcome, LME launch mini at same time and these are now for delivery month rather than date so it makes doing copper arb LME/CMX much easier and will hopefully become a very liquid switch. I am sick of buying cmx locals lunch.
As for silver/gold I already do all mine on ecbot but if nymex is anything to go by it has twice volume of ice despite being the laging exchange to go to screen. Not sure if there will be cost incentives on cmx but LME have fee holiday initially.

 

[jmreeve]

Lots and lots of new arb ops being created by NYMEX/ICE/CME/CBOT e.t.c
Great for traders that can exploit these.

More to come when NYBOT finally goes electronic.

Will be watching the new contracts with interest to see how they develop.