So people are going to be able to make a market all the way down to a particular cp node within MISO, PJM, NY, etc...? Great concept but I am wondering how successful this will be/ what kind of liquidity you will have. That PJM WH Mini Contract on ICE I thought was a good concept but it doesnt trade at all. I guess the fact that there is no real way to manage the position intra-month is why that contract is all but dead.
Yeah, but you have DC as a big player in nodal. They do a ton in the FTR market, which is basically what NEX is (there are a couple of subtle differences though). The algo that calculates clearing prices makes my head spin with all the permutations possible. I have my doubts about liquidity. I think hubs/zones are going to trade the most, along with some constraints that everyone knows (Bed-Bla, Clo-Lex, ect.) But its entirely possible that this thing could work. In regards to the WH minis, there is basically one guy making a market, so if he pulls you're pretty much stuck. Its kind of funny, there is one guy that is stuck with 25 megs of bal mo and he has his guy come across the box every morning trying to dump it. I tried to get a number out of him where he would roll out, but he wouldn't show anything. If they offered 1 mw blocks on dailies, that would make things a little more manageable.
I just asked our NYISO and NEISO trader, and he says no, not yet. I guess Nymex is offering very liquid zonals in those ISO's which takes away our incentive to trade on that exchange. He says later, if that exchange really takes off, and maybe offers pricing advantages we may participate there.