well, doubting thomas that i am, i returned to a trading floor for the first time in 7 years. ok it was only one pit and it was only one section of the second floor of an office block off moorgate but yes, it felt good to see the whites of people's eyes again!!
the nymex chappie who chatted to me was very candid about what they are trying to achieve and what they know they need to do to survive. volumes down there today have really dropped off from the opening few days and that seems to be (worryingly ) in part due to some big sepo swingers they brought over who were happy to trade 'your size' who have now gone back to ny.
the general feeling is it could work but they need to introduce other contracts, e.g. russian oil contract and possibly bring the wti over to london when its asleep in america. i seem to recall the liffe trying something similar with the t-bond and it didnt really work though....
however, the nymex are committed to some form of pit trading for a good year, possibly up to 5 years (lease they took on the building) and i for one really hope it works for them. incidently, a massive bonus is you dont pay anything to stand there, i.e. no seat charges so all you're paying are round turns. big plus for any local or broker.
so what would i do? well, outright trading nymex brent aint gonna work. using it against wti and arbing against ipe brent, yeah it will work, there is money there.......eyes wide open though!!!
the nymex chappie who chatted to me was very candid about what they are trying to achieve and what they know they need to do to survive. volumes down there today have really dropped off from the opening few days and that seems to be (worryingly ) in part due to some big sepo swingers they brought over who were happy to trade 'your size' who have now gone back to ny.
the general feeling is it could work but they need to introduce other contracts, e.g. russian oil contract and possibly bring the wti over to london when its asleep in america. i seem to recall the liffe trying something similar with the t-bond and it didnt really work though....
however, the nymex are committed to some form of pit trading for a good year, possibly up to 5 years (lease they took on the building) and i for one really hope it works for them. incidently, a massive bonus is you dont pay anything to stand there, i.e. no seat charges so all you're paying are round turns. big plus for any local or broker.
so what would i do? well, outright trading nymex brent aint gonna work. using it against wti and arbing against ipe brent, yeah it will work, there is money there.......eyes wide open though!!!
