The Chicago Mercantile Exchange (CME) says its incentive programme that introduced in April is already boosting volumes in its Euro FX futures and options contracts. The trading permit and incentive programmes for Euro FX and Euro FX Cross Rate futures and options is designed to get new traders into the pits, as well as offer economic incentives for trading the contracts.
Since the programme is intended to bring in new blood, the Euro FX Permit is not available to current seat holders. However, they can participate in a bonus pool programme, which entitles them to volume incentive payments.
Fifteen permits were made available on April 7, while members get unlimited access to the bonus pool programme.
The permit sells for $1,500, but a fee rebate of 50 cents per contract is available up to 3,000 contracts to offset the cost. Additional incentives include a cash bonus payment of $1.00 per side for pit and Globex2 traded Euro FX and Euro FX Cross Rate futures and options volume above 3,000 contracts per month, subject to a cap. Clearinng fees for the cross rate contracts are waived throughout 1999.