*DJ Nymex Exec: Side-By-Side Trade Likely Within 30 Days (DJ) (MORE TO FOLLOW) Dow Jones Newswires February 03, 2006 15:02 ET (20:02 GMT) Copyright (c) 2006 Dow Jones & Company, Inc. - - 03 02 PM EST 02-03-06 Keywords: CURRENCY ENERGY FINANCIAL ECONOMY STOCKS GENERAL 14:02:37 02/03/06
Yep. I would have said NEVER yesterday but after today's *takeoff* of the WTI contract it's possible for sure. Any word if it's CL only or also HU, HO and others?
Nymex to Offer Round-the-Clock Electronic Trading, Members Say February 3, 2006 15:54 EST (BLOOMBERG) - - The New York Mercantile Exchange, the world's largest energy exchange, plans to offer around-the-clock electronic markets in its oil and gas contracts, responding to growing threats to its live floor trading, two seatholders said.
Nymex to Offer Round-the-Clock Electronic Trading, Members Say 2006-02-03 15:54 (New York) By Matthew Leising Feb. 3 (Bloomberg) -- The New York Mercantile Exchange, the world's largest energy exchange, plans to offer around-the-clock electronic markets in its oil and gas contracts, responding to growing threats to its live floor trading, two seatholders said. The strategy is designed to combat the ICE Futures exchange, which today started electronic trading of an oil contract that competes directly with Nymex. ICE Futures recorded about 25,000 transactions as of 12:30 p.m. in New York, equal to almost 10 percent of the New York exchange's daily average in crude futures in the past five days. Nymex until now has run its electronic system only when its floor in downtown Manhattan is closed, a strategy to preserve the livelihood of members who work on the floor. The Nymex board discussed expanded electronic trading at a meeting this week, said the seatholders, who asked not to be named because the deliberations were private. Nymex has ``recognized the threat'' it faces from electronic trading, said Bruce Weber, an associate professor at the London Business School who follows exchanges. ``They're realizing they've got a challenge in front of them now, and they're going to meet the competition where they have to.'' The daytime trading of the ICE Futures oil contract showed Nymex members that a change is needed, the seatholders said. The full-time electronic markets may be available within 30 days, they said. Anu Ahluwalia, a spokeswoman for Nymex, declined comment. Nymex faces growing pressure to offer more electronic trading, which can be less expensive for customers and provide them with more flexibility. The exchange today earns the bulk of its revenue from its open-outcry trading floor. ICE Trading The Access electronic system that is used now for Nymex contracts before and after floor trading hours will be expanded, the seatholders said. The Nymex floor's regular hours are 10 a.m. to 2:30 p.m. Kelly Loeffler, a spokeswoman for Intercontinental Exchange Inc., owner of ICE Futures, declined to give its trading volumes while the market was still open. Andy LeBow at Man Financial in New York, who trades on ICE Futures for his customers, provided the volume data. ICE Futures is the former International Petroleum Exchange and dominates trading in Brent crude oil futures, which are used as a benchmark outside the U.S. Nymex has averaged 259,647 oil futures contracts traded per day over the past five days, according to Bloomberg data. Other futures exchanges have already switched to all- electronic trading or trade mostly on computer screens. ICE Futures shut its London open-outcry floor last year in favor of electronic trading and still saw total trading volume increase 18 percent. The Chicago Mercantile Exchange, which used to depend on open-outcry as the Nymex does, now trades 71 percent of its futures on its electronic Globex system. Chicago Merc Nymex may also be concerned about competition it could face later this year from the Chicago Mercantile Exchange, the largest U.S. futures market. Starting energy trading at the Chicago exchange, ``is an important strategy,'' Chief Executive Officer Craig Donohue said this week on a conference call with investors. A non-compete accord between Nymex and the Chicago Mercantile expires in June. Nymex last year opened an open-outcry floor in London meant to compete with ICE Futures in the trading of Brent. The Nymex London operation has captured less than 1 percent of the Brent futures business. In a move to stem its losses, Nymex plans to offer electronic trading of a half-size Brent crude oil contract beginning Feb. 6. --Editor: Dieterich (tjc) Story illustration: To see prices and volume data for ICE Futures Brent crude oil, enter {COA <Cmdty> CT <GO>}. For the same for Nymex futures, enter {CLA <Cmdty> CT <GO>}. To graph oil prices, enter {CL1 <Cmdty> GPO <GO>}. For exchange news, see {NI EXC <GO>}. For a menu of contracts listed on futures exchanges, see {CEM <GO>}.For a graph of ICE shares, see {ICE US <Equity> GP <GO>}. To contact the reporter on this story: Matthew Leising in New York at (1) (212) 617-1151 or mleising@bloomberg.net. To contact the editor responsible for this story: Robert Dieterich at (1) (212) 617-4485 or rdieterich@bloomberg.net.
Nymex needs to get dead serious like, real fast. This is awesome for electronic traders. Thank you ICE! And might I add one request to IB: DON'T add NYMEX when you begin offering pit contracts - squeeze 'em hard!!