Trading Jenga: London Gains Ahead in Crude Trading?

New commodity options will become effective on Sunday, September 13, 2015. Trading will begin on Monday, September 14, 2015, if all goes well during the CFTC regulatory review period.

Curious minds speculate about the origin of this request for new options and how important these will become. Is this an indication that BP and other London traders are gaining traction? Does this indicate a trading change? Is it the movement of more money into crude or reducing the funds required to take and hold positions in crude for experienced trading floors?

The large question is why Louisiana? Is this one more future Henry Hub future paired trade or hedging tool? Will it become a favorite option of all things Exxon and Kinder Morgan? Can you envision yourself making lots of money with this contract? Will the Nat Gas Henry Hub front month contract get squeezed?

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