Crude Oil options on Globex??

Discussion in 'Commodity Futures' started by dougman100, Dec 10, 2006.

  1. Does anyone know if Crude Oil options are moving to Globex eventually? I thought I read awhile back that they were but can't seem to find info on it. Thanks.
  2. rosy2


    not until globex or any other electronic venue can handle options trading. most firms buy/sell options as packages and so far globex can't handle it
  3. Rosy,
    You said that "not until globex or another other electronic venues can handle options trading".
    Globex handles options on ES, , NQ, ER2, and a lot of currency contracts. I think 9 floor currency contracts go side by side on 12/18.
    They can handle options trading.
  4. rosy2


    you are thinking like a retail investor not like a corp or large firm. yes globex can handle vanilla options quotes but no one asks for a quote on a $70 oil call. they ask for atm straddles, butterflys, options on spreads, options on a strip, ...
    they are not going to leg into anything either. that's why ICE brent options do not even trade
  5. OK, I got ya. I didn't know exactly what you meant when you said companies buy/sell as "packages".
  6. Maverick74


    I spoke to the NYMEX when they were in Chicago for the FIA. They expect to launch electronic options on crude and nat gas first quarter of 2007. I've been told this is a top priority for them.
  7. spread


    Who specifically said this?
  8. Maverick74


    Oh Jesus man, I must have spoken to 100 people that day at the expo. I have no idea, I don't recall his name. I spoke to all the exchanges that day including ICE.
  9. Awesome. Good news. Thanks Mav74.
  10. While NYMEX may list the options the probability of them becoming liquid, for the reasons Rosy stated among others, is slim. Regardless of what happens, the vast majority of energy option volume will always be traded OTC.

    If/when energy options become liquid on a screen my money is on one of the OTC brokers as far as providing the platform that draws the liquidity i.e. Parity Energy is supposedly developing a platform that will cater to "complex" option strategies.
    #10     Dec 11, 2006