Nasdaq OMX plans to introduce contracts of steel on its futures exchange, with help from the World Steel Exchange. CME Group makes its own plans for new contracts, eyeing two new crude oil products by year’s end. Exchange operator Deutsche Börse is the combo breaker today, announcing not new contracts, but a new technology and service division.
crude oilEverything tagged with: crude oil
May 7, 2013: NASDAQ OMX and World Steel Exchange Marketing Announce Strategic Partnership; CME eyes new U.S. Gulf Coast crude futures launch by year-end; Deutsche Börse Creates New Business Segment For IT And Market Data
by Jonathan Matte – JLN
Imagine a beautiful, autumn scene: still, early-morning air with a sharp, crisp edge; a thin mist dancing lazily around the tops of the green-golden trees; a river winding silently along through a brown grass meadow and out of sight.
Then… a gunshot rings out! A thousand crows take to the air, wheeling and squawking, circling the air in a communal state of alarm, crying and calling to each other to be wary and careful. For a while. After a suitable amount of time has passed, the noise diminishes, ceases, and finally the birds return to their perch. The danger has passed.
But have they changed anything, for all their fuss and turmoil? Has the hunter been found and neutralized? Have they learned about guns and bullets and the physics of ballistics? Have they erected barriers against bullets? Have they implemented patrols and watches to warn against the arrival of an armed hunter? Have they formed alliances with other species in the forest? Have they even determined that the gunshot was part of an attack against them, versus a fisherman merely firing his bear-protection rifle at a distant log because he was bored?
Anthony Lazzara is co-founder and principal of Lido Isle Advisors, LLC., responsible for selecting and allocating to commodity trading advisors on behalf of the company’s clients. He spoke with JLN Managed Futures editor Jim Kharouf about what he looks for in CTAs today, which sectors of CTAs are doing well in this environment and what the CTA space needs to do to expand.
Disclaimer: Futures and options trading involve risk. Past results are no indication of future performance.
When futures prices go up, they are advertising for selling. When prices go down, they are advertising for buying. With futures prices going up for crude oil and many other commodities, a truth has emerged in the cash markets that we have not grown our farming, drilling, mining or processing capacity to meet the increasing demand of a developing global economy. High commodity prices are sending an important message. We need to listen to that message and respond.
We need to respond to higher prices with more selling. We need to find a way to meet the growing global demand with real production of oil, metals, grains, fibers and many other commodities. We need the higher prices to spur the investment in that production. This is a demand-pull rally in prices, not a supply shock. We should not be shocked that millions of Chinese who work in factories in cities (rather than in agriculture in the country) need to buy food, transportation and clothing. This change in lifestyle has created a change in demand with higher wages and a rising living standards. Look at the label on the goods you buy and the clothes you wear and you can find similar economic/human migration stories in other countries around the world.