In the face of continued growth in Brent volumes at the newly all-electronic International Petroleum Exchange (IPE), some market participants have expressed doubt over the viability of New York Mercantile Exchange (Nymex)'s open outcry challenge for the contract, even after the exchange relocates to London.
Nymex's Dublin venture has struggled recently, the latest blow being the departure of Local clearer ADM (see FO Week Vol 10 No 20) and one participant source told FO Week that the only reason there are volumes there at all is the promise of a London exchange this summer.
The source said, "What's happening in Dublin is that the Americans have basically deserted it and left it to the British. The US Locals have gone back - what is the point, when there's open outcry in New York? In Dublin...