Volume on clearport is going to grow. First, the miny crude and natural gas contracts will be listed on the trading venue in July. Second, later this year, the NYMEX floor products (crude, natural gas, heating oil, unleaded, gold, silver, copper, etc.) will be listed on clearport but, still, will trade on an overnight basis. Since NYMEX has the ability to link products through "implied markets" via inter-commodity spreads, the miny crude and natural gas contracts might become very liquid during after hours. This could boost overall open interest and really kick-start the contracts as a major electronic contracts.
I wouldn't be so sure about the growth potential you're predicting. If history is any accurate reflection of future events, one only needs to look at the CBOT's past regarding overnight electronic trading when a floor is vigorously protected. Their project A was a virtual ghost town after hours because they took the exact same approach... They made their floor the centerpeice of trading at their exchange, and did not allow parallel daytime electronic trading. They got marginal success, but nothing to write home about, when they closed the night bonds. Once they did allow parallel daytime trading, implied spreads and all, they grew by leaps and pushed the floor guys into the shadows. The CBOT floor might as well be a food court now. If NYMEX is smart, they'll go digital, parallel, and invest in a good grease trap!
You might be right but Clearport has to take small steps. By the way, what are seat prices at CBOT these days?
CBOT Membership Seat Prices as of June 7, 9:06 AM (CDT) Class Bid Ask Last Sale Date FULL w/CBOE Exerciser Right 1,698,000 1,720,000 Last:1,698,000 6/7/2005 AM 581,000 700,000 Last: 675,000 6/7/2005 AM1/2 296,000 480,000 Last: 300,000 4/28/2005 COM 165,000 181,000 Last: 175,000 5/31/2005 IDEM 65,000 76,000 Last: 76,000 5/31/2005
Anyone have a screenshot of the current bid/offer spreads on the IPE crude contract (with size)? maybe the first few months and Dec?
Exchange Postpones Migration of NYMEX miNY Futures ontracts NEW YORK, N.Y., August 17, 2005 â The New York Mercantile Exchange, Inc., announced today that it will postpone the migration of the NYMEX miNYsm crude oil and natural gas contracts from the Chicago Mercantile Exchange® Globex® platform to NYMEX ClearPort® as previously scheduled for August 22. As a result, the October contract month of the NYMEX miNYsm crude oil and natural gas contracts will be listed for trading on the Globex® platform effective 6:00 PM (EST) today. Exchange President James E. Newsome said, "Testing has been successfully completed, and the Exchange systems are prepared and ready for this transition. In fact, as of today, more than 35 firms have signed up and certified for FIX connectivity to our electronic platform. However, as the Exchange continues to study its strategic alternatives, which includes a review of existing technology initiatives, it has determined that the appropriate course of action at this time is to maintain existing technology.
Forget NYMEX. Once they move it to ClearPort the only advantage of emiNY products had, that of trading in the reliable GLOBEX system, will be gone. Why deal with the crooks in NY (NY has a -well-deserved- reputation of having the most crooked markets in the world) when you can trade the electronic Brent contract at IPE?
Nymex in talks to extend link with CME By Jeremy Grant in Washington and Kevin Morrison in London Financial Times Published: August 18 2005 23:54 The New York Mercantile Exchange is in talks with the Chicago Mercantile Exchange about extending its use of the CMEâs electronic trading system for two key energy futures contracts for the next five years, futures industry participants and exchange members said. The development is a sign that Nymex may be keen to head off any attempt by the CME to compete against Nymex in energy futures - an area in which the Chicago exchange has recently expressed interest.
Thanks for the post - now the constant delays over the Clearport migration come into context, and have nothing to do with "technology" issues.