Energy Futures Trading

Overview

vCap Futures can assist institutional and professional clients in all segments of the energy spectrum including access to one of the most diverse and sophisticated energy brokerage and technology solutions in the country. We also provide access to ICE (Intercontinental Exchange®) which operates the leading electronic marketplace for global energy futures and OTC trading. ICE is globally accessible, promotes price discovery and offers key energy products through contracts based on crude oil and refined products, natural gas, power and emissions.

Our clients can utilize the energy markets through our front-end solutions in the form of futures, options, spreads, synthetics and swaps to minimize the risk associated with adverse price movements in crude oil, heating oil, gas and natural gas. vCap Futures facilitates the technology and high-end connectivity needed to access the energy markets so that its clients can achieve their speculative, commercial commodity risk management, hedging, consulting, energy management programs needs:

• Crude Oil and Natural Gas Producers - to protect against lower prices on their production.
• Refineries - to protect against higher crude oil costs and against declines in refinery margins.
• Pipeline Shippers - to protect against declining value of inventories.
• Wholesalers - to protect against both contract purchases and contract sales.
• Retailers - to protect against both inventories price decline and retail margin decline.
• End Users - to protect against increasing prices on anticipated purchases.
• Freight Shippers - to protect against increases in fuel surcharges.
• Speculators – to capitalize on price movements and speculative purchase and sales.

As a whole the energy complex is one of the largest volume commodity group traded in the world, and it is also one of the most volatile. Trading in the energy markets are offered around the clock through ICE, NYMEX (e-miNYsm energy futures) and the CME Globex energy futures:

Please note that the following descriptions contain some statements of opinion and should be recognized as such.

Crude Oil Futures: The NYMEX’s light, sweet crude oil futures contract is the one of the world's most actively traded futures contract on a physical commodity. Light, sweet crude is preferred by refiners because of its low sulfur content and relatively high yields of gasoline, diesel fuel, heating oil, and jet fuel. CME provides trading in crude oil futures.

Unleaded Gasoline Futures: Gasoline is the one of largest single volume refined products sold in the United States and is a highly diverse market, with hundreds of wholesale distributors and thousands of retail outlets, often making it subject to intense competition and price volatility. NYMEX provides trading in gasoline futures contracts.

Heating Oil Futures: Heating oil, also known as No. 2 fuel oil, accounts for about 25% of the yield of a barrel of crude, the second largest "cut" after gasoline. Closely related to heating oil is kerosene, which is in addition to NYMEX heating oil futures. The NYMEX provides trading in gasoline futures contracts.

Natural Gas Futures: Natural gas accounts for most of the US energy consumption, and the NYMEX natural gas futures contract is widely used as a national benchmark price. The CME E-mini natural gas futures contract, is 50% of the size of a standard futures contract. The natural futures contract is available for trading on the CME’s Globex electronic trading platform almost 24 hours per day.