Mini PJM ICE Contracts

Discussion in 'Commodity Futures' started by sledged, Dec 4, 2008.

  1. sledged


    Anyone see the mini pjm contracts that are going to be trading on ICE starting Friday? Will this be only on monthly pieces or can you do it on bal-mo, bal-week's, etc... Seems too small to be for a bal day but if u enter into one of these monthly pieces and u want to manage it weekly, daily, etc... how will this work? I think its a great idea and will open the term market up to a lot more participants.
  2. Yes, clearing firms just got the info to allow limits today. I am thinking our clearing firm should have our limits updated for tomorrow.

    Its only going to be monthly pieces right now.

    A 1 MW contract in Jan is going to be 336 mwh. My rep said he's got indications that algo firms are going to make markets somewhere around a dollar outside the big contracts.

    As far as managing something inside the month, I think you are just SOL at this point.

    I think brokers are going to charge their standard daily rate for brokering these.

    Most odd lots will be done on the screen I think.

    This will definitely open the doors to smaller firms working with term stuff. Hello NQ '09 :-D

    Our shop really only trades cash, but we are going to start term with the minis assuming liquidity is there.
  3. sledged


    First day didnt look too liquid, but it was a Friday and it was the first day so of course will take a little time before people dive in.
  4. Are these contracts any better than what the NYMEX had before the Enron implosion? :confused:
  5. Nymex contracts are 2.5 mw, these are 1.

    Noticed liquidity wasn't really there, but for a while there was a bilat guy making 2 ways for the '09 curve. I think once people get their limits in place there will be some decent volume.
  6. last yr i used to make mkts in the 5mw mini both peak and off peak but brokers hated me for it and so did mgnt

    its a very good thing that might save this very illiquid mkt;just look how successfull nordpool/eex are with trading smaller sizes

    btw im in chicago and would like to speak to anyone interested in these mini's from a trading point of view....including any prop shops in the usa that might have an interest.....

    yes indeed im looking for a job
  7. Volume isn't really coming in, although the markets are somewhat tight. There is a MM that makes markets out in the '09 curve, and he's accommodating too if you need something done.

    All in all, not a bad start. Just need the MM to stay in the game, and we'll see where it goes from there.