Suggest traders "fuggetaboutit"... things you don't get to know. Read and play the price chart. Best shot all of us retail screen jockeys have.
Why are ECNs and Dark Pools not available for Commodities and Futures?
- Thread starter schizo
- Start date
I cannot believe that nobody got the correct answer?!
Futures contracts are exchange exclusive, meaning when an exchange is introducing a new contract, it can only trade on that specific exchange, period.
The exchange has the exclusive right to offer trading of the respective futures contract.
On top of that, please remember that a whole lot of futures contracts are for physical delivery meaning matching trades is only half the business. The other half is warehousing and settling the physical product.
How would the EUREX for example offer a futures product for NaturalGas that is for physical delivery at Henry Hub? If it's cash settled NatGas it's not the same contract.
That means that there is no way another venue - dark pool or ECN - will match trades in that futures contract
Equities are exclusive to the company that offered the shares to the public, which is why it is called secondary market. Any exchange, any venue can compete.
Futures contracts are exchange exclusive, meaning when an exchange is introducing a new contract, it can only trade on that specific exchange, period.
The exchange has the exclusive right to offer trading of the respective futures contract.
On top of that, please remember that a whole lot of futures contracts are for physical delivery meaning matching trades is only half the business. The other half is warehousing and settling the physical product.
How would the EUREX for example offer a futures product for NaturalGas that is for physical delivery at Henry Hub? If it's cash settled NatGas it's not the same contract.
That means that there is no way another venue - dark pool or ECN - will match trades in that futures contract
Equities are exclusive to the company that offered the shares to the public, which is why it is called secondary market. Any exchange, any venue can compete.
So funny...This was never a market for the active trader. Do you even remember this in 2020...
US oil prices turned negative for the first time on record on Monday after oil producers ran out of space to store the oversupply of crude left by the coronavirus crisis, triggering an historic market collapse which left oil traders reeling.
The price of US crude oil crashed from $18 a barrel to -$38 in a matter of hours, as rising stockpiles of crude threatened to overwhelm storage facilities and forced oil producers to pay buyers to take the barrels they could not store.
This market is for farmers...Wheat, corn, soy. It's for companies like; Hormel, ADM, Bunge, Exxon. You could buy some "USO"...guess what?? It's a limited partnership!! Limited partnership can be worse than an LLC.
You should not be in this market unless you want 20,000 pounds of pork bellies delivered to your door. Yeah, I know (won't happen)...It's just a joke.
Old movie...Before electronic trading. OJ anyone??
I am telling you, I am telling you, this was a boondoggle by the CME of epic proportions. They warned traders that the CL contract could go negative ahead of time (by a month, which had never ever happened before) through an obscure message to dealers, WHILE THEY HAD LIMIT BREAKERS IN PLACE WHICH LIMITED THE DROP TO $.01 PER BARREL.
When the drop below zero happened, they claim they no longer had breakers, but their real-time webpage still had the limits on! Two days later, all limit down breaker listings for all energy products were removed from their website.
I am telling you people, something is not right about how that all went down. The whole thing smells like shit. It smelled like shit when it happened, and it still smells like shit now.