Just a reminder to everyone that the NASDAQ energies contracts are clearing .25 cents per side vs ICE at .82 NYMEX at 1.50 The lower fees are very advantageous to spread, RV and high volume traders such as myself. liquidity is not there yet, but the sooner a majority of the trading activity moves over to the NASDAQ, the sooner we can all benefit. “We will be offering futures and options on futures on the key energy benchmarks in crude oil [WTI and Brent], natural gas [Henry Hub] and power,” Magnus Haglind, head of U.S. commodities for Nasdaq OMX and CEO of Nasdaq Futures, told Markets Media. “It will be in competition with the incumbents, CME and ICE. What we are offering is a low fee and a rebate model based on volume, which doesn’t depend on whether or not you’re a member.” Crude oil, including combined WTI and Brent, “is trading a couple of million contracts a day but the pricing of these products still reflects floor trading, so ‘electronification’ of the markets and the efficiencies that come with that haven’t transferred to market participants,” Haglind said. “What we are proposing is to trade these products in a more cost-efficient way.”
it is an excerpt from an old, dated article...but the point is that the nasdaq is saying that nymex and ice are still using archaic floor trading fees and not passing on the efficiency of electronic trading onto the consumer
This is very interesting. Thank you for pointing out that NASDAQ even has a futures exchange. I did not know. I would not trade these markets to save on clearing fees at this time. At 1000 Barrels, that is $10.00 per $0.01. CL and QM trade with tight markets. If this is not the same here, each penny is much more than clearing costs. I'm not even sure what FCMs and platforms can clear and access these. I like it that they are cash settled.
Exactly. Good info to have for further study. By the way, hi Old Man Morse! *waves* Long time no see.
Hi Rob, you are correct. but hopefully liquidity will continue to gravitate to the exchange which is lower in cost so that we can all benefit in the long run. Access is listed on TT nex gen platform, not sure about others.... https://www.tradingtechnologies.com/markets/markets-served/ I think it is a matter of asking your broker, etc.....I don't know if it involves getting membership, etc..
It is my understanding that a clearing firm needs to be a member to get access and clear or use a carrying broker, which increases costs. CQG can access them. http://www.cqg.com/partners/exchanges/nfx
I noticed two things on that list. Wedbush Futures, who we IB to, is not on that list. And, at the end of that list it say,"Two members want to remain anonymous." Odd, unless they are members but don't want to offer access yet.