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DJ Nymex Exec: Side-By-Side Trade Likely Within 30 Days
- Thread starter JayS
- Start date
Yep. I would have said NEVER yesterday but after today's *takeoff* of the WTI contract it's possible for sure.
Any word if it's CL only or also HU, HO and others?
Any word if it's CL only or also HU, HO and others?
Nymex to Offer Round-the-Clock Electronic Trading, Members Say
February 3, 2006 15:54 EST (BLOOMBERG) -
- The New York Mercantile Exchange, the world's largest energy exchange, plans to offer around-the-clock electronic markets in its oil and gas contracts, responding to growing threats to its live floor trading, two seatholders said.
February 3, 2006 15:54 EST (BLOOMBERG) -
- The New York Mercantile Exchange, the world's largest energy exchange, plans to offer around-the-clock electronic markets in its oil and gas contracts, responding to growing threats to its live floor trading, two seatholders said.
Nymex to Offer Round-the-Clock Electronic Trading, Members Say
2006-02-03 15:54 (New York)
By Matthew Leising
Feb. 3 (Bloomberg) -- The New York Mercantile Exchange, the
world's largest energy exchange, plans to offer around-the-clock
electronic markets in its oil and gas contracts, responding to
growing threats to its live floor trading, two seatholders said.
The strategy is designed to combat the ICE Futures
exchange, which today started electronic trading of an oil
contract that competes directly with Nymex. ICE Futures recorded
about 25,000 transactions as of 12:30 p.m. in New York, equal to
almost 10 percent of the New York exchange's daily average in
crude futures in the past five days.
Nymex until now has run its electronic system only when its
floor in downtown Manhattan is closed, a strategy to preserve
the livelihood of members who work on the floor. The Nymex board
discussed expanded electronic trading at a meeting this week,
said the seatholders, who asked not to be named because the
deliberations were private.
Nymex has ``recognized the threat'' it faces from
electronic trading, said Bruce Weber, an associate professor at
the London Business School who follows exchanges. ``They're
realizing they've got a challenge in front of them now, and
they're going to meet the competition where they have to.''
The daytime trading of the ICE Futures oil contract showed
Nymex members that a change is needed, the seatholders said. The
full-time electronic markets may be available within 30 days,
they said.
Anu Ahluwalia, a spokeswoman for Nymex, declined comment.
Nymex faces growing pressure to offer more electronic
trading, which can be less expensive for customers and provide
them with more flexibility. The exchange today earns the bulk of
its revenue from its open-outcry trading floor.
ICE Trading
The Access electronic system that is used now for Nymex
contracts before and after floor trading hours will be expanded,
the seatholders said. The Nymex floor's regular hours are 10
a.m. to 2:30 p.m.
Kelly Loeffler, a spokeswoman for Intercontinental Exchange
Inc., owner of ICE Futures, declined to give its trading volumes
while the market was still open.
Andy LeBow at Man Financial in New York, who trades on ICE
Futures for his customers, provided the volume data. ICE Futures
is the former International Petroleum Exchange and dominates
trading in Brent crude oil futures, which are used as a
benchmark outside the U.S.
Nymex has averaged 259,647 oil futures contracts traded per
day over the past five days, according to Bloomberg data.
Other futures exchanges have already switched to all-
electronic trading or trade mostly on computer screens. ICE
Futures shut its London open-outcry floor last year in favor of
electronic trading and still saw total trading volume increase
18 percent.
The Chicago Mercantile Exchange, which used to depend on
open-outcry as the Nymex does, now trades 71 percent of its
futures on its electronic Globex system.
Chicago Merc
Nymex may also be concerned about competition it could face
later this year from the Chicago Mercantile Exchange, the
largest U.S. futures market.
Starting energy trading at the Chicago exchange, ``is an
important strategy,'' Chief Executive Officer Craig Donohue said
this week on a conference call with investors. A non-compete
accord between Nymex and the Chicago Mercantile expires in June.
Nymex last year opened an open-outcry floor in London meant
to compete with ICE Futures in the trading of Brent. The Nymex
London operation has captured less than 1 percent of the Brent
futures business. In a move to stem its losses, Nymex plans to
offer electronic trading of a half-size Brent crude oil contract
beginning Feb. 6.
--Editor: Dieterich (tjc)
Story illustration: To see prices and volume data for ICE
Futures Brent crude oil, enter {COA <Cmdty> CT <GO>}. For the
same for Nymex futures, enter {CLA <Cmdty> CT <GO>}. To graph
oil prices, enter {CL1 <Cmdty> GPO <GO>}. For exchange news, see
{NI EXC <GO>}. For a menu of contracts listed on futures
exchanges, see {CEM <GO>}.For a graph of ICE shares, see
{ICE US <Equity> GP <GO>}.
To contact the reporter on this story:
Matthew Leising in New York at (1) (212) 617-1151 or
mleising@bloomberg.net.
To contact the editor responsible for this story:
Robert Dieterich at (1) (212) 617-4485 or
rdieterich@bloomberg.net.
2006-02-03 15:54 (New York)
By Matthew Leising
Feb. 3 (Bloomberg) -- The New York Mercantile Exchange, the
world's largest energy exchange, plans to offer around-the-clock
electronic markets in its oil and gas contracts, responding to
growing threats to its live floor trading, two seatholders said.
The strategy is designed to combat the ICE Futures
exchange, which today started electronic trading of an oil
contract that competes directly with Nymex. ICE Futures recorded
about 25,000 transactions as of 12:30 p.m. in New York, equal to
almost 10 percent of the New York exchange's daily average in
crude futures in the past five days.
Nymex until now has run its electronic system only when its
floor in downtown Manhattan is closed, a strategy to preserve
the livelihood of members who work on the floor. The Nymex board
discussed expanded electronic trading at a meeting this week,
said the seatholders, who asked not to be named because the
deliberations were private.
Nymex has ``recognized the threat'' it faces from
electronic trading, said Bruce Weber, an associate professor at
the London Business School who follows exchanges. ``They're
realizing they've got a challenge in front of them now, and
they're going to meet the competition where they have to.''
The daytime trading of the ICE Futures oil contract showed
Nymex members that a change is needed, the seatholders said. The
full-time electronic markets may be available within 30 days,
they said.
Anu Ahluwalia, a spokeswoman for Nymex, declined comment.
Nymex faces growing pressure to offer more electronic
trading, which can be less expensive for customers and provide
them with more flexibility. The exchange today earns the bulk of
its revenue from its open-outcry trading floor.
ICE Trading
The Access electronic system that is used now for Nymex
contracts before and after floor trading hours will be expanded,
the seatholders said. The Nymex floor's regular hours are 10
a.m. to 2:30 p.m.
Kelly Loeffler, a spokeswoman for Intercontinental Exchange
Inc., owner of ICE Futures, declined to give its trading volumes
while the market was still open.
Andy LeBow at Man Financial in New York, who trades on ICE
Futures for his customers, provided the volume data. ICE Futures
is the former International Petroleum Exchange and dominates
trading in Brent crude oil futures, which are used as a
benchmark outside the U.S.
Nymex has averaged 259,647 oil futures contracts traded per
day over the past five days, according to Bloomberg data.
Other futures exchanges have already switched to all-
electronic trading or trade mostly on computer screens. ICE
Futures shut its London open-outcry floor last year in favor of
electronic trading and still saw total trading volume increase
18 percent.
The Chicago Mercantile Exchange, which used to depend on
open-outcry as the Nymex does, now trades 71 percent of its
futures on its electronic Globex system.
Chicago Merc
Nymex may also be concerned about competition it could face
later this year from the Chicago Mercantile Exchange, the
largest U.S. futures market.
Starting energy trading at the Chicago exchange, ``is an
important strategy,'' Chief Executive Officer Craig Donohue said
this week on a conference call with investors. A non-compete
accord between Nymex and the Chicago Mercantile expires in June.
Nymex last year opened an open-outcry floor in London meant
to compete with ICE Futures in the trading of Brent. The Nymex
London operation has captured less than 1 percent of the Brent
futures business. In a move to stem its losses, Nymex plans to
offer electronic trading of a half-size Brent crude oil contract
beginning Feb. 6.
--Editor: Dieterich (tjc)
Story illustration: To see prices and volume data for ICE
Futures Brent crude oil, enter {COA <Cmdty> CT <GO>}. For the
same for Nymex futures, enter {CLA <Cmdty> CT <GO>}. To graph
oil prices, enter {CL1 <Cmdty> GPO <GO>}. For exchange news, see
{NI EXC <GO>}. For a menu of contracts listed on futures
exchanges, see {CEM <GO>}.For a graph of ICE shares, see
{ICE US <Equity> GP <GO>}.
To contact the reporter on this story:
Matthew Leising in New York at (1) (212) 617-1151 or
mleising@bloomberg.net.
To contact the editor responsible for this story:
Robert Dieterich at (1) (212) 617-4485 or
rdieterich@bloomberg.net.
Awesome developments ... cool how fast this sh*t shakes out.
Quote from JayS:
First Day Volume
ICE WTI: 38,633
Has put fear into the Nymex.
Nymex needs to get dead serious like, real fast. This is awesome for electronic traders. Thank you ICE!
And might I add one request to IB: DON'T add NYMEX when you begin offering pit contracts - squeeze 'em hard!!