NYMEX Clearport Question

[artis74]

I want to start using clearport to do some block trading. I have a broker who will do it but I just wanted to see if anyone knew what the prevailing rate on blocks is?

Im hearing anywhere from 1.25-2.00. Thoughts?

 

[bone]

I use ClearPort for Power and NG options, and ICE for Power swaps- both on the screen and through the broker market.

I mean, really - it is futile and academic to worry about paying commission and brokerage on the relative scale of things in the OTC cleared energy market. I can assure you that the P&L swings and the margin requirements will take priority.

 

[artis74]

i agree and the capital is not a concern. ive just been out of the OTC loop for a few and wanted to check to see if there had been any majore changes in last 6 months.

I used to pay 2.00 for blocks in clearport and I anted to see if there had been any fee compression.

 

[ogarbitrage]

I think it's still $2.00/contract, but you can contact your clearing firm to make sure.

Are you getting back into OTC?

 

[artis74]

yes the futures are rather futile in terms of the strategy i am looking to employ. there just isnt liquidity in the q's and cal's on globex which is a bummer but such is life.

 

[thegazelle]

I use clearport for power options and ice for power swaps. I can't wait till it all gets cleared on Ice (monthly power options, ect. ) . Its happening next month!

To answer your question with power its usually .01-.02 a mw depending on if your doing cash or term.

 

[new$]

WILL CMEs takeover of NYMEX affect Clearport ?

 

[thegazelle]

Since Ice told LCH to go jump, LCH has since latched on to Nymex and will begin clearing their OTC stuff.

http://www.nymexonlchclearnet.com/index.php

 

[bone]

ICE makes well over $800K per day on OTC product vigorish alone. Now it's gotta be closer to $900K. LCH got a fairly rich cut on the clearing - wacking them should help the ICE stock price I would imagine.

 

[bone]

CME would like to emulate the ICE and ClearPort OTC energy business model with respect to OTC fixed income and equity derivative products. The real future growth revenue for exchanges will be in OTC products like swaps, and not futures as we know and love them. Problem is, the banks don't want to share the fun.