CME Group has launched a new incentive programme that will offer South American-based banks discounted trading fees for proprietary trading of CME Group products.
Scheduled to begin on May 1, banks will receive discounts on nearly every CME futures product including currencies and interest rates, although they will not be immediately available for metals products. The fee program will run through to December 31, 2010.
“This incentive program, combined with our order routing agreement with BM&F Bovespa, is part of our strategy to encourage South American customers to utilise CME Group products as solutions to their risk management needs,” says Rick Redding, CME Group managing director of products and services.
Banks located in Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela are eligible to participate in the programme.
South America has been earmarked as a key expansion area for CME. In 2007 it entered into a cross-investment deal with BM&F, the largest derivatives exchange in South America, whereby it acquired a 10% equity stake in BM&F in exchange for an equity stake of approximately 2% in CME Group. Since then the two exchange groups have made their products directly accessible to trade on each other’s trading platforms.