CME exchanges fees in Jan 2004

GeorgeSoros · Nov 28, 2003

I have had the info from 2 brokers than CME fees will be lowered on Jan 1st 2004 as well as access to CME data (I even saw it going from 53usd to 33usd)

Can someone confirm or give more information about this? (for example the commission cut)

FX-Trader · Nov 28, 2003

How about 20 to 40 cents lower exchange fees per side ?

CBOT cuts fees for electronic trading in a salvo at Eurex US

By Mark Skertic
October 22, 2003

To compete with Eurex US, the Chicago Board of Trade has borrowed from the playbook of retailers and manufacturers: When someone wants to take your market share, try to come up with something that's better and cheaper.

On Tuesday, the Board of Trade's leadership said that fees for electronic trading are going to drop, and that the lower costs will save market users an estimated $60 million annually. The new fees are scheduled to be in place on Jan. 1.

Fees were reduced in anticipation of Eurex's arrival in the U.S. The Swiss-German exchange, the largest futures exchange in the world, has announced plans to open Eurex US by Feb. 1.

But those plans hinge on regulatory approval, and last week federal regulators said they were taking Eurex off fast-track approval so they could take a closer look at the application.

Bernard Dan, the Board of Trade's president and chief executive officer, said the Eurex application should get more scrutiny because it leaves many questions unanswered.

Eurex, he said, has made promises in its public statements, but has not addressed those points in its application with regulators.

"What you don't do is apply with one business plan and market with another," said Dan.

A spokesman for Eurex declined to comment.

The Board of Trade has been gearing up for Eurex's anticipated arrival for months. On Tuesday, Dan and Charles Carey, chairman of the board, outlined their fee plan.

"Our future rates will be at, or significantly below, all published rates of any prospective competitor," Dan said. "And there's no opaqueness about pricing. It is what it is."

Eurex CEO Rudi Ferscha has said his U.S. exchange will charge a maximum of 30 cents per contract, with most trades priced at less than 20 cents per contract. He also said the exchange would commit to holding those prices for five years.

For Board of Trade members, the average rate will be 5.5 cents per trade, down from 12 cents. Non-members using a member's account will pay on average 22.5 cents a trade, down from 27.4 cents.

Those two categories account for about 80 percent of trading, Dan said. The remainder is non-member account trading, where the average trade will cost 85 cents, down from $1.05.

Copyright Â© 2003, Chicago Tribune
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GeorgeSoros · Nov 28, 2003

Unfortunately this was the CBOT and not the CME

ElectricSavant · Nov 28, 2003

I have always admired companies that self-clear and able to offer lower retail commisions. Part of my evaluation of which brokerage to use would be their ability to be competitive and stay the leader in their price structure and lead the market.

As far as Eurex.....well thank you. But I now question why does it take a European player to force Chicago to lower their fees? It has been my experience that the Europeons are traditionaly more expensive in just about everything.

This tells me a lot of people are making a lot of money......

Michael B.

GeorgeSoros · Nov 28, 2003

how much do you pay for a 5MB ADSL line ?

In Paris - France, it is 30E per month...We will soon have 100MB line for 30E per month but just in Pau not in Paris...

Still thinking Europe is expensive?

How much do you pay for a phone call from USA to France? Here in Paris we pay 3 cents/mn for France to USA...Don't think you pay that low in USA...

Europe is expensive for Audio CDs, jeans.

And as for Eurex, a Bund roundturn is at 1.90eur at Velocityfutures. How much is a TNOTE roundturn on CBOT? At least 3.95usd at the same broker...US is expensive as for future trading and with the value of 1 USD now it is more attractive to trade EUR futures...

nononsense · Nov 28, 2003

Quote from GeorgeSoros:

[...]

Europe is expensive for Audio CDs, jeans.

[...]

More...

Nobody beats Europe for highest TAXES!

nononsense

taodr · Nov 28, 2003

Check out Canada for high taxes. The Canadian standard of living has fallen 15% in last 10 years. Canadians love taxes and they explain it away saying they are superior to Americans.

H2O · Nov 28, 2003

http://finance.lycos.com/qc/subs/rtfees.aspx

Couldn't find info for my vendor (eSignal) but it seems Quote.Com is lowering CME fees but adding to the CBOT

GeorgeSoros · Nov 28, 2003

You are a bit too generic, Europe is not just one country but a group...

For example how can you compare Gibraltar taxes to northern europe taxes ? Both are part of Europe...

In opposite with USA, where you pay US taxes wherever you live in the world, in Europe you pay where you spend more than 6 months and 1 day...

For example I know future traders working in Gibraltar, daytrading Bund and paying 15k euros max per year, that makes 50k euros per month and have a house in Spain where they live...

ElectricSavant · Nov 28, 2003

To measure disposable income is the best way to determine quality of life.

I think the USA is where the money is.....however capitalism at its finest is not always the fairest.

Michael B.