Trading CME listed electricity futures

Discussion in 'Commodity Futures' started by newdog, Feb 3, 2018.

  1. newdog

    newdog

    I am interested in knowing what broker people have used for trading the following PJM electricity futures instrument listed on CME

    CME already gives list of brokers but none of them I have heard of.

    Any experience regarding commissions, minimum trading volume and other transaction costs will be helpful.
     
  2. Robert Morse

    Robert Morse Sponsor

    I have received a few calls on these products. When trying to place the prospective client, I have been told many times that the FCM often do not allow access to these unless the client has a large balance sheet or is a hedger.
     
    comagnum likes this.
  3. Sig

    Sig

    Additionally I'm not sure there is a market maker type continuous market for these like the more common commodities. They are more cleared OTC brokered deals. And to get someone to invest the time to line up a counterparty for you, you'd need to be doing large transactions.
     
    cole_ likes this.
  4. newdog

    newdog

    What does large balance sheet mean? What number would you put on it? Will $500k cut it?
     
  5. Sig

    Sig

    This falls into the "if you have to ask, you can't afford it." category.

    Generally a large balance sheet means a public or large private company. Someone who could issue debt and have it rated investment grade. Significantly more than $500k.