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Dublin Brent oil trading tops record in first month Back  
The New York Mercantile Exchange (NYMEX), which is the largest commodity exchange in the world, traded 95,435 contracts in its first month of operation in Dublin, topping the previous annual
record of 49,565 contracts when the futures contract was originally introduced in 2001.

In November, NYMEX opened a trading floor in Dublin, offering open outcry Brent crude oil futures trading. Brent blend is a light, sweet North Sea crude oil that serves as a benchmark grade .Open outcry trading will run from 10:00 am until 7:30 pm, with after-hours electronic trading on the NYMEX ACCESS system. The market will operate as a designated contract market, subject to regulation by the Commodity Future Trading Commission and the Irish Financial Services Regulatory Authority (IFSRA).
Click for large image...
Ringing the bell at 10 a.m. on November 1st to begin the first day of trading at the new NYMEX exchange in Dublin were (l-r): Senator Timmy Dooley, NYMEX chairman Mitchell Steinhause and Senator Cypri

NYMEX’s decision to open its first European operation in Dublin was prompted in part by rival International Petroleum Exchange’s (IPE) move to close its Brent trading during morning hours.
At the end of the first day of trading, Brent futures contract reached an estimated first–day volume of 5,726 contracts and the front-month January contract settled at $46.95.

NYMEX is leasing space from FINEX, the futures trading operation owned by the New York Board of Trade, which has been trading currency and equity futures from the IFSC since 1994. Trading permits will be made available to FINEX’s traders as well as energy traders in New York and London.

The IDA, which was involved in facilitating the establishment of the Dublin operation hopes that this is the first step in encouraging the company to list additional trades in Dublin, including heating oil, gold and silver, all of which are currently traded in New York. NYMEX is operating a three month incentive programme to encourage traders to use the Dublin facility.

The programme consists of three components; first, the Exchange will provide a weekly stipend of $1,000 to permittees and to clerks to reimburse demonstrated transportation and living expenses, such as hotel bills.

Second, the Exchange will provide a fee waiver or ‘holiday’ of all Exchange transaction and clearing fees in the Brent futures contract. Finally, NYEMEX will provide payment of $0.50 per lot per side for transactions in Brent for any CIT indicator type.

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