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CME Fee changes 2014, significant impact


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CME Fee changes 2014, significant impact

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  #201 (permalink)
 DavidHP 
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FYI

I was recently notified that the CME is trying to charge the Pro fee to my group account.
The reason is because I trade more than 2 accounts.

It appears that the CME considers trading 'friends and family' accounts as a professional if there are more than 2 accounts in the group. I'm not sure how this affects other futures.io (formerly BMT) traders but you may want to watch this to see if you fall under the same restrictions.

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  #202 (permalink)
 bathrobe 
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So I have read through this and am left wondering, I have been using the exchange fee waiver for 4 years, will my data fee jump up in 2015 or am I grandfathered into the lower price?

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  #203 (permalink)
 dwt51 
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DavidHP View Post
FYI

I was recently notified that the CME is trying to charge the Pro fee to my group account.
The reason is because I trade more than 2 accounts.

It appears that the CME considers trading 'friends and family' accounts as a professional if there are more than 2 accounts in the group. I'm not sure how this affects other futures.io (formerly BMT) traders but you may want to watch this to see if you fall under the same restrictions.

So, I wonder if CME will find a way to make a "pro" of anyone who partitions his capital into >1 account, even if it's at multiple FCM's. Thus, anyone attempting to limit risk in the event of broker/FCM bankruptcy is a pro?

dwt51

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  #204 (permalink)
 DavidHP 
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dwt51 View Post
So, I wonder if CME will find a way to make a "pro" of anyone who partitions his capital into >1 account, even if it's at multiple FCM's. Thus, anyone attempting to limit risk in the event of broker/FCM bankruptcy is a pro?

dwt51

CME is making a lot of changes and doing things that most traders are not aware of.
The following link sent to me by the CME support site is one example.
The link is 'on' their website but is deeply hidden and until you ask about it you seldom will see it.

On page 5 you can see a question about professional account and POA. Anyone with more than one POA will be considered a professional by the CME even though the CFTC rules say you can trade up to 15 accounts and not be a pro.

https://www.cmegroup.com/market-data/distributor/files/market-data-policy-changes-faq-2014.pdf

Not much can be done about it afaik.

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  #205 (permalink)
 kronie 
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DavidHP View Post
CME is making a lot of changes and doing things that most traders are not aware of.
The following link sent to me by the CME support site is one example.
The link is 'on' their website but is deeply hidden and until you ask about it you seldom will see it.

On page 5 you can see a question about professional account and POA. Anyone with more than one POA will be considered a professional by the CME even though the CFTC rules say you can trade up to 15 accounts and not be a pro.

https://www.cmegroup.com/market-data/distributor/files/market-data-policy-changes-faq-2014.pdf

Not much can be done about it afaik.

yet again another abuse of the small guys, but these emboldend MBA's thinking this is another revenue stream they are missing,

well step on the toe and watch the elephant tumble!

it happened to the CBOE and then a tsunami hit them with both the CME Emini trading being easier than Option trading (Index, Equity and Esoterics), then the SEC raised Reg-T to minimum accounts of $25,000. They just about disappeared from the modern vernacular.

Seems the party punch bowl is being poisoned and the gang will be moving to another platform from here. Well, not sure whether Nadex and Intercontinental Exchange have had their effect upon the CME, what with they own the Nymex, and the NYSE and have direct links to the LIFFE. Wow, seems old hat, these ancient exchanges, like the CBOT, CME and CBOE.

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  #206 (permalink)
 SMCJB 
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DavidHP View Post
CME is making a lot of changes and doing things that most traders are not aware of.
The following link sent to me by the CME support site is one example.
The link is 'on' their website but is deeply hidden and until you ask about it you seldom will see it.

On page 5 you can see a question about professional account and POA. Anyone with more than one POA will be considered a professional by the CME even though the CFTC rules say you can trade up to 15 accounts and not be a pro.

https://www.cmegroup.com/market-data/distributor/files/market-data-policy-changes-faq-2014.pdf

Not much can be done about it afaik.

Excellent link with lots of information that will answer a lot of questions I have seen asked.

To reiterate what @DavidHP said
POA on 2+ account = professional (page 5)
LLC with two trading terminals or less per Distributor per Subscriber entity will qualify for non-professional pricing (page 4)

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  #207 (permalink)
 SMCJB 
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So far most of the conversation regarding the new data fees seems to have been focused around Professional/Non-Professional prices.

Has anybody looked into the ATS ("Automated Trading System") pricing though which is significantly higher still at $670 per exchange per the 12 November 2013, Market Data Notice to Distributors. After rereading the FAQs @DavidHP posted I decided to find a definition of what they define as an ATS. This is very dated but the September 10, 2009, MARKET REGULATION ADVISORY NOTICE regarding Identification and Registration of Globex Operator IDs (Tag 50 IDs) has some definitions on (page 4). One interpretation of this is that any system that automates order execution (as opposed to manual click execution) is classified as an ATS. As such wouldn't almost everybody be subject to the $670/exchange pricing rather than the $85/exchange professional pricing?

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  #208 (permalink)
 Big Mike 
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SMCJB View Post
So far most of the conversation regarding the new data fees seems to have been focused around Professional/Non-Professional prices.

Has anybody looked into the ATS ("Automated Trading System") pricing though which is significantly higher still at $670 per exchange per the 12 November 2013, Market Data Notice to Distributors. After rereading the FAQs @DavidHP posted I decided to find a definition of what they define as an ATS. This is very dated but the September 10, 2009, MARKET REGULATION ADVISORY NOTICE regarding Identification and Registration of Globex Operator IDs (Tag 50 IDs) has some definitions on (page 4). One interpretation of this is that any system that automates order execution (as opposed to manual click execution) is classified as an ATS. As such wouldn't almost everybody be subject to the $670/exchange pricing rather than the $85/exchange professional pricing?

Perhaps @NinjaTrader and @NT Brokerage can offer clarity. My understanding in 2009 was platforms were required to report auto trading by a flag.

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  #209 (permalink)
 Cristian 
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Hi,
I put this question to Ninja Support as being a client of Ninja Brokerage.
This is the answer I got:

Hello,

Thank you for your inquiry.


No, the Market Data Non-Dispaly fees do not apply to you. Your account has data provided by Continuum/CQG. Automated Trading Systems are then developed within NinjaTrader, not through another API or you requesting live market data directly from the CME.

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  #210 (permalink)
ranger64
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Non-Professional Self-Certification Form:

"The Non-Professional Subscriber’s Access to Information must only
h) be via a maximum of two trading terminals per Distributor, permissioned for Real-Time Information and capable of routing orders to the CME Globex Platform (an “Order Routing Device”)."


What does "two trading terminals per distributor" mean? For example, if I am trading through AMP, have several subaccounts and have market data access through more than 2 platforms (NT/CQG, SC/TTnet, SC/Rithmic), does that make me a professional subsciber?

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  #211 (permalink)
 CobblersAwls 
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I was wondering if anyone could help me with a query. Would you be classified as a professional if you were CF30 authorised?

IT doesn't really specify and not sure how much they take into account foreign financial regs. Also not sure what the consequences be if I classified myself as non-professional and they disagreed.

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  #212 (permalink)
 SMCJB 
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I talked to CME Market Data Services today, they were very friendly and helpful, and confirmed what has already been said and dissected here.

I would like to reemphasize the member netting program they have. The way it was explained to me, if you are a member and registered with the exchange under the netting program you will then be billed directly by the CME, and will not have to pay any data fees at the broker level no matter how many brokers, or devices/platforms you have.

It should be noted that if you are a professional on one exchange you are considered a professional for all the exchanges. Similarly if you are member on just one exchange you are entitled to netting on all exchanges as well. I mention this because some of the memberships are very cheap. (CME/GEM $100/mth, CBOT/IDEM $46/mth!). While these memberships may not come with the fee breaks that some of the more expensive memberships do but for a small fee you may be able to qualify for membership data bundling across the CME Group. An additional thing to consider though is the potential tax implication of being a member.

CME Member Netting Information
https://www.cmegroup.com/market-data/distributor/members.html

CME Membership & Lease prices
https://www.cmegroup.com/company/membership/membership-pricing.html

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  #213 (permalink)
 Big Mike 
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Notice from CTS:


Quoting 
CTS Users:
In an effort to help alleviate the new market data fees CTS will now offer delayed data for CME, CBOT, NYMEX, COMEX and MGEX.
Any user can go the market data setup page, http://www.t4login.com/live/, and change their selection to “Delayed”. On the new frontend released this past weekend all Delayed markets will be prefixed with the << symbol to eliminate any confusion.
• Live execution is available from the delayed data markets.
• Your P&L will be displayed based on the delayed quote but pre trade risk management will use the real time data
• You may choose to have a combination of Live and Delayed data. Subscriptions are selected at the Exchange level for CME, CBOT, NYMEX and COMEX. For example you can choose Live for CME and CBOT but receive delayed data for NYMEX or COMEX.
• CTS’s T4 Delayed Feed is an exchange compliant market data feed delivering a complete market data stream after a brief 10 minute delay.
• When entering an order into a Delayed market you will be prompted to confirm as the price you are seeing may be different from the current price due to the delay. You can turn this confirm off in the Main window properties >Contract> Submission> then unchecking the 'Delay Market Confirmation' setting.
• Not all order types are available in Delayed markets
• After making any market data changes you must restart T4 for the changes to take effect

Any questions please email support@ctsfutures.com

Mike

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  #214 (permalink)
 smalltrader35 
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I am using Rithmic data into both NinjaTrader & Sierra charts. Does this mean I will have to pay $15*2 per month for all 4 exchanges?? How do I go about getting just the top of the book for all exchanges as I don't need market depth?? Do I go through sierra charts or contact brokers directly?? Maybe Matt can let me know what to do...

Thx

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  #215 (permalink)
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I am using Rithmic data into both NinjaTrader & Sierra charts. Does this mean I will have to pay $15*2 per month for all 4 exchanges?? How do I go about getting just the top of the book for all exchanges as I don't need market depth?? Do I go through sierra charts or contact brokers directly?? Maybe Matt can let me know what to do...

Thx

The short answer is yes, if you have two different logons. You will have to contact your broker.

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  #216 (permalink)
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smalltrader35 View Post
I am using Rithmic data into both NinjaTrader & Sierra charts. Does this mean I will have to pay $15*2 per month for all 4 exchanges?? How do I go about getting just the top of the book for all exchanges as I don't need market depth?? Do I go through sierra charts or contact brokers directly?? Maybe Matt can let me know what to do...

Thx

I have PM's you and we will take care of with our support team.

Matt

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
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  #217 (permalink)
 smalltrader35 
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I have PM's you and we will take care of with our support team.

Matt


Thanks Matt...

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  #218 (permalink)
 Futures Operator 
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SMCJB View Post

I would like to reemphasize the member netting program they have. The way it was explained to me, if you are a member and registered with the exchange under the netting program you will then be billed directly by the CME, and will not have to pay any data fees at the broker level no matter how many brokers, or devices/platforms you have.

It should be noted that if you are a professional on one exchange you are considered a professional for all the exchanges. Similarly if you are member on just one exchange you are entitled to netting on all exchanges as well. I mention this because some of the memberships are very cheap. (CME/GEM $100/mth, CBOT/IDEM $46/mth!). While these memberships may not come with the fee breaks that some of the more expensive memberships do but for a small fee you may be able to qualify for membership data bundling across the CME Group. An additional thing to consider though is the potential tax implication of being a member.

CME Member Netting Information
https://www.cmegroup.com/market-data/distributor/members.html

CME Membership & Lease prices
https://www.cmegroup.com/company/membership/membership-pricing.html

Thanks for sharing. Do leases count as memberships for this purpose? What are the tax implications of membership?

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  #219 (permalink)
 SMCJB 
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Futures Operator View Post
Do leases count as memberships for this purpose?

I think so. (It does for me)

Futures Operator View Post
What are the tax implications of membership?

I think it makes your trading earnings subject to self employment tax. (It does for me again)


Disclaimer. I'm not an accountant, I'm a trader, hence this is only my understanding and while I believe it to be accurate it may be incorrect.

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 smalltrader35 
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Hi Matt,

Below is my original post via the thread. I've only just checked my balance and I've been charged $15 per month for the market depth instead of the Top Of The Book deal I thought was set up for me since the start of the year. Not to worry about the oversight. Can you set up the Top Of The Book for me now as I don't need market depth? Is there anything I need to do my end regarding NT or Sierra?? I require CME, CBOT, NYMEX & COMEX Bundle Top Of The Book Only = $3 per month.



smalltrader35 View Post

I am using Rithmic data into both NinjaTrader & Sierra charts. Does this mean I will have to pay $15*2 per month for all 4 exchanges?? How do I go about getting just the top of the book for all exchanges as I don't need market depth?? Do I go through sierra charts or contact brokers directly?? Maybe Matt can let me know what to do...

Thx

I have PM's you and we will take care of with our support team.

Matt

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  #221 (permalink)
 mattz   is a Vendor
 
 
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smalltrader35 View Post
Hi Matt,

Below is my original post via the thread. I've only just checked my balance and I've been charged $15 per month for the market depth instead of the Top Of The Book deal I thought was set up for me since the start of the year. Not to worry about the oversight. Can you set up the Top Of The Book for me now as I don't need market depth? Is there anything I need to do my end regarding NT or Sierra?? I require CME, CBOT, NYMEX & COMEX Bundle Top Of The Book Only = $3 per month.



smalltrader35 View Post

I am using Rithmic data into both NinjaTrader & Sierra charts. Does this mean I will have to pay $15*2 per month for all 4 exchanges?? How do I go about getting just the top of the book for all exchanges as I don't need market depth?? Do I go through sierra charts or contact brokers directly?? Maybe Matt can let me know what to do...

Thx

I have PM's you and we will take care of with our support team.

Matt

Rithmic Via NinjaTrader
Rithmic Via SierraTrader
Do not offer Top of Book as far as I know.
We will list shortly here which platforms do offer it.
This is a personal matter of your account and it should be directed to
our technical team. Support (AT) optimusfutures (DOT) Com

Thank you,
Matt

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
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  #222 (permalink)
 mattz   is a Vendor
 
 
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CQG Trader which is a free platform does provide Top of the Book.

Thanks,
Matt

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Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
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