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TraDaToR
 

Registered: Dec 2006
Posts: 3786

 

07-31-12 12:57 PM

http://www.platts.com/RSSFeedDetail...eed/Oil/6513184

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hoop121
 

Registered: Apr 2012
Posts: 135

 

07-31-12 04:08 PM


Quote from TraDaToR:

http://www.platts.com/RSSFeedDetail...eed/Oil/6513184



i wonder if this will make it easier for people to access these markets. for instance, will the average Joe now be allowed to trade PJM West Hub Real Time through his TOS account?

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ogarbitrage
 

Registered: Mar 2008
Posts: 785

 

07-31-12 07:09 PM

At first I thought this was another attempt by ICE to kill the OTC market, but I don't think it will do much at all. Just renaming their swaps to avoid regs.

CME's OTC products are listed as "futures". The products officially designated "Cleared Swaps" by CME have 0 open interest across the board.

And I imagine many of the current OTC restrictions will still apply for ICE's product mix going forward, ie: $1m for hedgers, $10m spec. (This is unconfirmed though)

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bone
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Registered: Apr 2002
Posts: 4329

 

08-02-12 03:06 PM


Quote from hoop121:

i wonder if this will make it easier for people to access these markets. for instance, will the average Joe now be allowed to trade PJM West Hub Real Time through his TOS account?



Not for the vast majority of "retail oriented" accounts if they keep the contract sizing the same - the initial and performance bond margin requirements will be considerable.

This is regulatory arbitrage, pure and simple. There used to be a regulatory and reporting advantage to trading swaps in lieu of futures - but the pending regulations do away with that.

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hoop121
 

Registered: Apr 2012
Posts: 135

 

08-04-12 09:05 PM

just spoke with my ICE representative and he said the same strict restrictions will not apply. this is good news for people like myself who would like to trade these products, but do not have the liquid net worth to qualify for access.

he's not sure if it will be something that someone with just a regular futures account with TOS or IB, for example, will be able to trade, though. but he does think this will be the case. they just don't have all of the details yet.

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2rosy
 

Registered: May 2012
Posts: 336

 

08-04-12 09:25 PM

does this mean that a small guy can actually trade these markets?
small meaning under 100k

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