Volume in the physically settled WTI crude contract launched by New York Mercantile Exchange (Nymex) has improved steadily since launch on 5 September, breaking the 100,000 contract mark within a week. However, some trading sources have begun to give Nymex's rival, Intercontinental Exchange (ICE)'s ICE Futures subsidiary, genuine chances of success in the crude oil battle.
"After about three months the bid and offer on the ICE contract was tighter than on the Nymex floor," a senior FCM oil trading source said. "The situation to me looks as though it's getting worse: there are wider spreads on the Nymex floor? and more reliable pricing on the ICE screen."
Nymex announced on 12 September that it set daily volume records for total crude oil, heating oil and E-miny crude oil futures contracts, traded on Chicago Mercantile Exchange's Globex electronic trading...