Discussion in 'Commodity Futures' started by TjZtr8der, Jul 10, 2007.

  1. TjZtr8der



    I was wondering if anyone had any insight as to the changes in the gold/silver futures traded at the CBOT now that CME has bought them?

    I personally find it easier to trade the single tick contract at cbot as opposed to the 5 tick increment at the comex/globex product. The cost to trade metals as a member at the cbot is almost nothing as well.

    Will cme relinquish the rights to the metals at cbot because of their relationship with comex? Will they stop offering comex products and use the cbot metal complex? Maybe ICE will offer a competing metals product.

    Any ideas as to time frame for changes?

    Any thoughts?

    thanks for any insight you can provide.

  2. Realist


    As far as I know so far, CBOT would continue to offer gold/silver contracts whether they remain floor-based and on side-by-side on ECBOT, I'm not really sure. I did like the smaller tick increments on ZI-Silver however using stop orders on ECBOT has always been a big problem due to available liquidity. I don't believe that the relationship between NYMEX and the CME will change as the arrangement so far has worked out extremely well for both exchanges. NYMEX and CME continue to rake in the cash as a result of NYMEX products being traded on GLOBEX. I don't think that ICE has any plans to begin offering metals as COMEX appears to have won over the complete majority of traders and funds. GC/SI continues to exhibit all of the qualities of being the global benchmark for precious metals derivatives and this is unlikely to change any time soon imo..
  3. TjZtr8der


    thanks for the reply.

    I am still waiting to see if cme/cbot will continue to operate ecbot where it suits their needs. I would guess that the cme agreed to a non-compete with comex in regards to metals.

    I just don't know how this will all play out.

    Maybe as long as it trades on a different platform, they can continue to offer the product.

    The cost difference for me is significant between cbot member rates and comex non-member rate.

    For a scalper, stops are a non-issue. I am either in, out, or averaging in or scaling out. Usually all of the above. If I think i need a stop behind a trade, i usually won't make the trade.(except if I have to go make a pit stop) ;-)

    I'll keep listening.