Read time: 2 min

CME Drops More Prices

The Chicago Mercantile Exchange (CME) has further amended its pricing structure to attract new customer segments and increase trading volumes, according to the exchange. The new pricing targets CME equity members, non-member eFX automated market members, and non-member firms.

“We have a great success story in CME’s eFX products, with March volume up 144% and first quarter volume up 152% from year ago levels,” says Craig Donohue, the Merc’s chief executive officer. “The pricing strategy reflects our continued focus on attracting new eFX customers to CME while providing our existing customers with cost efficient and highly liquid benchmark products.”

In May, the exchange will launch a new 12-month Globex fee programme intended to attract proprietary non-automated trading volume. The minimum volume qualification is 150,000 sides per month. The new volume discounts, which include both Globex and clearing fees, are as follows:











Volume

New Pricing

0-150,000 sides/month

$0.20

Greater than 150,000 sides/month

$0.10

If volume thresholds are not met, members will continue to qualify under existing member incentives:














Volume

New Pricing

0-50,000 sides/month

$0.30

0-150,000 sides/month

$0.20

Greater than 150,000 sides/month

$0.15

May 3 will see the CME launch a pricing programme intended to attract non-member firms such as fund managers, by making fees more competitive with alternative trading venues, it says. The eFX trading fees, which again include Globex and clearing fees, will be lowered from $0.70 to $0.44 for non-member firms. On the same day, the Merc will also launch a non-member eFX automated market maker incentive programme designed to attract trading systems currently quoting over-the-counter (OTC) FX trading platforms, it says. The scale is as follows:














Volume

New Pricing

0-75,000 sides/month

$0.44

75-250,000 sides/month

$0.30

Greater than 250,000 sides/month

$0.25

The price cuts follow moves earlier in the year when the Merc cut its prices for European proprietary trading groups, a strategy intended to develop its presence outside the US.

The CME also reports that volume continued to grow in March, noting an all-time record of 4.8 million contracts traded, up 31% year on year, and for the first time it averaged above 200,000 contracts changing hands per day. FX volume was 49% higher for Q1 ’04 compared to the same period in 2003.

Profit & Loss

Share This

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit

Related Posts in