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for some reason, the internet has made this information impossible to find. with the pits at the nymex closing, how are energy futures PHYSICALLY/TACTICALLY traded in the US? is it just people sitting at bloomberg terminals in the offices of an investment bank calling people with bid prices? who are they calling? how are more complicated contracts created, or are the ICE and NYMEX offering all you get?
if i was a an airplane company that wanted to hedge oil prices, what is the chain of people that would need to go through, and how would they be connected?
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>>1590308
Bumping for interest
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You would trade it in an exchange, like pretty much any other future. If you're not a member if an exchange, you'd get your FCM to do it for you. Exchange traded stuff doesn't really have people telephoning around, you place an order electronically and it maybe gets filled. If you wanted to trade something that isn't offered on an exchange (like swaps), you could theoretically trade with anyone who wants to take the other side of it.
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>>1590382
airlines are asking their FCMs to trade oil futures?
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>>1590394
If you're not a clearing member, then you have to have an FCM sitting in the middle.
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>>1590406
okay - how does the oil get from a tanker to my airplane?
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>>1590418
People generally buy futures to hedge or speculate, not take delivery.
I trade crude all the time and have never touched a single barrel, despite buying/selling thousands of them.
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>>1590418
You notify your clearing broker and the clearing house that you want to physically settle and they coordinate. Look on ice's website, the delivery instruction forms are all public. Physical settlement is fairly uncommon, as people tend to exit out roll contacts when expiry approaches.
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