Nymex struggles to take Brent trading from IPE

The New York Mercantile Exchange is attempting to gain control of the trade in Brent crude oil futures, but it is finding the effort difficult as it waits for regulatory approval to open an open-outcry exchange in London.

The International Petroleum Exchange closed its London trading floor in April and converted over to exclusively electronic trading. Meanwhile last December, Nymex opened a temporary trading floor in Dublin while it waits for permission to open in London.

But it seems that investors have gotten used to making electronic trades, as the volume of Brent contracts traded on the IPE’s electronic exchange have increased to 130,000 contracts per day.

This is ahead of the 100,000 contracts per day traded when the IPE’s London trading floor was still open. In contrast, trades of Brent crude contracts on Nymex’s Dublin trading floor have averaged only between 5,000 and 20,000 contracts per day.

In related news, Nymex is searching for minority investors, and the Chicago Mercantile Exchange has reportedly expressed an interest in purchasing part of the New York exchange. This comes at a time when, according to the president of Nymex, every exchange is in the market for partnerships.