e-miNY Crude Oil & Natural Gas

J

JayS

begin trading tomorrow June 17 on Globex, your broker will need clearing access with NYMEX (which almost all will have).


Crude Symbol: QM
Margin: $1,080

Natural Gas symbol: QG
Margin: $1,350

More info:
http://www.cme.com/products/commodity/emininymex/index.cfm
http://www.nymex.com/e-miny/index.htm

Trading Hours: (Eastern time)
"The trading sessions for the new contracts will begin at 7 PM, New York time, on Sundays, and 3:15 PM, New York time, Mondays through Thursdays, with one-hour breaks from 11 PM through 12 midnight and 9 AM to 10 AM, and will close at 2:30 PM. The contracts will be cleared through the New York Mercantile Exchange clearinghouse."
 
I have heard some traders will be setting up globex terminals

right next to the Nymex pits to try to gain the edge for quick scalps and arb against the big contracts in open outcry
 
The NYMEX will have 72 permit holders on trading screens around the crude oil and natural gas pit to trade the arbitrage between the pit and Globex market.
 
I want to start a radio ad. Buy emini nat gas contracts because.... it gets cold in the winter. Yea, that's the ticket. The big secret no one knows about.

Where is that dude hawking heating oil options? Did the NFA run him off the air. He was good for a laugh.
 
Did the chat thing with IB.

appears that we will not be able to trade the emini energy products.

Def, Should would like to be able to trade more futures products
 
Not a client of IB so don't know whats going on, I'm sure def or someone will correct me if my assumption is wrong. IB (or its affiliates) are not clearing members of the NYMEX where the new e-miNY contracts will be cleared http://www.interactivebrokers.com/html/companyInfo/exch_regulator_list.html . If they went with a firm that cleared through the NYMEX then they might not be able to offer the $4.80 round-turn (or even near it) after the extra fee's of clearing this product through someone else. Second they may be waiting to see how the contract does before plunking down the extra scratch to become a member (which would allow them to keep the commission's where they are for the new contract).

Just my thoughts, feel free to correct me.
 
The e-miNY energy futures contracts, though traded on GLOBEX platform, are cleared through the New York Mercantile Exchange clearinghouse. And "Those wishing to trade the e-miNY energy futures must first establish an account with a New York Mercantile Exchange clearing member firm, either directly or through a brokerage firm that does futures business."

IB is currently not a NYMEX clearing member firm. To trade the e-miNY contracts, IB must either become a NYMEX clearing member firm (IB seems to prefer self-clearing) that involves substantial capital expenditure/lockup, or make clearing arrangement with other clearing member firms that costs IB a piece of cake to feed them - considering IB's low commission rate, it's a significant piece.

If I am IB, I will adopt a wait-and-see approach to see if liquidity builds up as expected, that will take only weeks to months to tell, then makes a clearing arrangement to meet clients' demand. And whenever the regular daily volumes grow to justify economics of scale, self clear it! But if IB is to offer pit-traded markets in the near future, that's another story.
 
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