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.
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.
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.
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.
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
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.