Nymex in talks to extend link with CME By Jeremy Grant in Washington and Kevin Morrison in London Published: August 19 2005 The New York Mercantile Exchange is in talks with the Chicago Mercantile Exchange about extending its use of the CME's 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 might 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. It is also a sign of the manoeuvring under way among US exchanges as they assess how to take advantage of consolidation and the prospect of increased domestic competition. Under the arrangement being discussed, Nymex would pay the CME an annual fee of $5m-$6m to continue using Globex, the CME's system. The CME would agree to a "non-compete clause" preventing it from launching rival crude oil and natural gas futures. Under an arrangement in place since 2002, Nymex has been using Globex for electronic trading of its "miNY" crude oil and natural gas futures contracts. It had been due to shift the contracts to its Clearport electronic trading system earlier this year but twice postponed that move. On Wednesday, Nymex said it had postponed the migration for a third time. James Newsome, Nymex president, said that "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 arrangements". One Nymex shareholder said of the plan under discussion: "They [Nymex members] want Nymex to pay the Merc $5m-$6m a year to keep them out of the oil business." Some industry observers questioned why the CME would agree to such a non-compete arrangement in energy futures. But the arrangement would not prevent the CME eventually making a bid for Nymex, which is undergoing a strategic review by its board. John Barun, president of Capital Markets Consulting, said: "For them [the CME] effectively to be an incubator to help the Nymex go electronic and then to pounce is a legitimate play they might want to make." Anu Ahluwalia, a Nymex spokeswoman, said: "We're not commenting on any deals until they are complete." The CME said it did not "comment on speculation". © FT.com
Exchange Postpones Migration of NYMEX miNY Futures Contracts 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 arrangements." http://www.nymex.com/press_releas.aspx?id=pr20050817c
thanx for the info. i always figured that the nymex technology was the problem. i wish the cme woulddo it anyway and add unleaded gas,copper. it surprises me that the nymex and nybot dont see the advantage of having both pit and electronic trading.
Trade the Brent Crude futures on IPE instead. They are a better electronic product by a longshot and are growing quickly. Hopefully one day it can grow big enough to force NYMEX into one day creating a legitmate fungable electronic contract itself.
The electronic Brent on IPE has a better spread and liquidity than Crude on Nymex ? Average volume per day ?
It's not as liquid as the pit-traded Crude on Nymex, but it's the most liquid electronic oil contract out there. Lately the front month contract has traded about 70000-100000 contracts a day.
Gentlemen Which of person can compare trading of qm ,qg on Globex agaisnt trading cl,ng,hu on Nymex access in time ,which pit trading closed ? Volume ,spread,O.I. ,order filling ,level 2 quote ,commissions by brokers & Author would very pleased for answer.
You can trade cl, ng, hu, ho on NYMEX ACCESS between hours of 3:15 PM and 9:30 AM electronically. there is a little known FIX interface to the Access system that could be utilized to trade the front 6 months via a third party software trading workstation (if the ISV is certified). During these hours, you could be electronically arbitraging the qm, qg against the Bigs. Then, between 10 am and 2:30, its just miNY trading against the bigs on the open outcry floor. Don't know if this is the info you're looking for but it's something. Let me know if you need more.
Also, Nymex Access did 74,500 volume last night, while the e-miny's did 62,000. Access has a lot of spread trading but e-minys have none.
Dear sir Author is very pleased for your answer. Author have alternative to trade COP,VLO,MRO,XLE,XOM and options through Datek/AT ,OX,TOS ,MBT . Author suspect ,that from point of stability ,comnpanies mentioned are better . What kind of advantage can be to trade CL,NG,HU ,QM,QG SCV,THU,THO and options on NYMEX/ICE ? Exist platform for options on CL,NG,HU ,which provide time & sales for tape reading as OX ? Exist possibility to catch spread as for ES ? only electronicaly ,no pit delay .... Author performed real time paper game for ng,hu,cl and options by Refcopcg,Openecry with result until 700% per day ,but suspect that result is not relevant to real money trading ,as FIFO not incorporated and another grounds. Author interessed for a alternative trading / catch opportunity in time ,which NYSE,LSE ,Euronext closed ,different risk-reward &/ Author would very pleased for answer .Excuse the author ,if request is not relevant.