I heard its possible to clear nymex LO options on ICE (instead of thru Clearport). Does anybody do this? How does it work? What are the fees? I can't find any information on ICE's website about it at all. Thanks.
That can't be right. How would ICE clear a NYMEX contract? Did you misunderstand? ICE Europe offers a number of contracts which are very similar to NYMEX CL.
Isn't LO the nymex code for brent? CL can be cleared on ice, not fungible, but priced off nymex really, if its CL why bother? if brent, why are you using clearport?
On ICE its called WTI. Its basically the cash-settled equivalent of NYMEX CL. It is not a physically settled contract like ICE Brent or NYMEX CL. Most options are traded as blocks. There isnt much option liquidity on the sceens
I always used ICAP in Chapel Hill for OTC electricity options, I used Prebone Yamane in NJ and Amerex in Houston for LN Nat Gas Options. Call ICAP's Houston Desk, if they can't get it you don't need it. I have pasted some corporate propaganda from their US website below. Tell them you want the ICE financial products cleared through LCH. Polite word to the wise: If you are not presenting a certain level of financial bona fides, they will not show you a market because they are in turn protecting their existing clientele. Alot of these markets are shown over IM (seriously) or direct phone line. The broker then submits the deal to ICE-LCH or Clearport for clearing where it posts. Propaganda: ICAPâs Crude Oil & Refined Products desks are market leaders in Asia, Europe and the US. We span the entire petroleum spectrum: Brent, Brent Options, BFO, Urals, Fuel Oil, Fuel Oil Options, Gasoil, Gasoil Options, Gasoline, Gasoline Options, Jet Fuel, Jet Fuel Options, Jet Kerosene, Naptha, Heating Oil, Heating Oil Options, Residuals, ULSD, ULSD Options, WTI and WTI Options. To find out more about how ICAPâs Crude Oil & Refined Products services can help your business, contact: Burlington: + 1 781 272 3000 Houston: + 1 281 340 8700 London: + 44 (0)20 7532 4780 Wilton: + 1 203 761 1180