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CME Fee changes 2014, significant impact
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CME Fee changes 2014, significant impact

  #91 (permalink)
Market Wizard
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Balanar View Post
They have a monopoly and tell me some alternatives?

CME is way to big.

If you are focused on futures, you will have no chance avoiding CME. CME has on almost every product the highest liquidity.

Well - Eurex will most certainly benefit.

I may well stop trading ES entirely and stick with FESX.

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  #92 (permalink)
Elite Member
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Response from IB

After sending a message to Interactive Brokers regarding proposed changes to CME Fees, I was given this response:

"Dear Mr. Joyce,

If you are referring to the market data fees:

IB has no plan to change the existing fee structure for US Bundle (NP,L1), which includes GLOBEX futures data. You would have to check Ninja to see if they would be increase the associated data fees on their end.

If you are referring to the CME exchange fees:

IB has no plan to modify our existing commission structure for US futures, which is 0.85 USD per contract plus exchange fees. According to the link below, CME may slightly increase trading cost for selected number of contracts. IB would pass on the additional cost to you for related executions.

www.cmegroup.com/company/files/2014-fee-changes-summary.pdf

Best Regards

Yinan
IB CA"

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  #93 (permalink)
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My Conversation with Robert Carillo


I got a notice from DTN/IQFeed that fees would be increasing, so I contacted Robert Carrillo, my account manager. Below is a distillation of a series of emails and calls we had.

As an aside, the DTN notice also mentioned that they had increased the tick storage size from 120 to 180 days. If you use the BaBAR tool, I just released a patched version that allows you to take advantage of this.

The conversation:
--------------------------------------------------------

Before going into my understanding of my account, I wanted to clarify that when I say increased fees, I mean fees that I am paying now, which will have their value adjusted upwards, whereas when I say new fees, I mean fees that were not assessed before.

For 2014 will I face increased fees?

Robert Carrillo
There is a $2/mo increase for IQFeed Core Service, from $68/mo to $70/mo

Will there be new fees as well, for 2014 and/or 2015? Perhaps not new fees, but will the waivers go away at some point?

Robert Carrillo
Not new fees, but the waivers will end on Jan 1, 2015

If someone in 2014 said “I’d like the same services Bob gets,” how much would they pay for new service? (Would it be the same or more than what I pay?)

Robert Carrillo
If they sign up before Mar 1, 2014 (cutoff for new waivers) and obtain waivers, the cost will be the same as yours will be.

I have an older futures account with [Broker A] which I might close and move the assets to my account with [Broker B].

[Broker A] is the account that my fee waivers are attached to. If I close the account during 2014, will I lose my grandfathered status? Perhaps I should move my fee waivers to [Broker B]?

Robert Carrillo
The cutoff for new waivers customers is Mar 1, 2014. If you are switching brokers and still want waivers through 2014, you need to be certain the waivers through [Broker B] are in place before that date. I wouldn’t wait until the last minute on this. Brokers will be slammed with waiver requests as the Mar 1, 2014 cutoff approaches.

One of the selling points of having IQFeed is that I use it with NinjaTrader, and have the option to use other platforms as well. As I was reading the futures.io (formerly BMT) thread, it seems I may have to pay for each additional platform. Is that correct, and if so will it start in 2014 or 2015?

Robert Carrillo
This one is important and I haven’t yet posted about it on futures.io (formerly BMT), but will. CME Group charges exchange fees for each instance of providing data, not for how it is displayed. A single IQFeed account can still feed multiple applications simultaneously on the same computer and be charged one set of CME exchange fees.

Brokers will no longer be providing free CME Group data, so if you are also receiving Globex data from a broker, you’ll pay $15/mo to each broker you are receiving that data from. The $15/mo pays for Globex from CBOT, CME, COMEX and NYMEX.

I also have the IQFeed API and wrote a simple app called BaBAR to make connections and download data. BaBAR is available to futures.io (formerly BMT) elite members. Will I and other futures.io (formerly BMT)ers need to pay additional fees to run this and perhaps other applications I develop?

Robert Carrillo
As long as your API app(s) are on the same computer as the other apps you’re using IQFeed with, there are no additional fees.

When I signed up, I maxed out and got all data that was waived. (It was for free so why not?) I realize 2015 is a ways off, but when we get there will I be able to receive some or all of the data currently being waived on a delayed basis?

Robert Carrillo
I think you’ll be pleasantly surprised at the Non-Pro fees for Globex data, but you can receive those quotes on a 10 min delay with IQFeed Core Service. The two exceptions are COMEX and NYMEX which charge $1/mo each for delayed.

Finally, come 2015, how often will I be able to upgrade or downgrade my subscriptions?

Robert Carrillo
You can add exchanges or services whenever you like. Services and most exchanges prorate for the balance of the month. The exchanges that don’t prorate are COMEX, NYMEX and ICE Futures.

You can cancel exchanges and services anytime as well, but they will remain on your account until month-end, since there are no refunds or credit for unused time.

When I got to the end of this I realized I did not ask about LLC trading. I have an email into him on that now, he may reply to me or to the thread directly.

-Bob

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  #94 (permalink)
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Big Mike View Post

I believe that the brokers, platforms and data feed providers on futures.io (formerly BMT) are on top of this issue and that any delays are on the CME's side, so please cut them some slack and try to understand what they are dealing with.

More next week hopefully.

Mike

Why should I pay for my platform? This seems to be illogical. Maybe they mean platform and broker are the same!?

Or what do they mean by platform? My platform is NinjaTrader. I think the CME can not set up a fee for a platform.

Hope they can clarify this BEFORE 1st Januaray, 2014.

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  #95 (permalink)
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Balanar View Post
Why should I pay for my platform? This seems to be illogical. Maybe they mean platform and broker are the same!?

Or what do they mean by platform? My platform is NinjaTrader. I think the CME can not set up a fee for a platform.

Hope they can clarify this BEFORE 1st Januaray, 2014.

Read the post you are quoting, the paragraph above what you quoted.


Big Mike View Post
But some clarification I did receive from multiple sources did indicate to me, in my opinion, that the $15 per-platform fee (ie "primary" and "backup" platforms) is not correct and it is a per-broker fee. But this is just my interpretation, who knows at this point what the final language is going to look like.


Mike

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  #96 (permalink)
Market Wizard
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Watching this lengthy thread about new CME fees

... there are more questions than answers.

Facts:
1) CME is monopolist for US futures
2) There are many traders of any size
3) A high liquidity in the markets are attracting more traders
4) Fee pricing tends upwards
5) Uncertainty is obvious for every client

Conclusion:
a) Uncertainty is poison for money markets
b) The fee question for traders is primordial to stay above waters
c) If clients are leaving the boat (forced or unforced) - the liquidity in the market will shrink
d) Shrinking markets lead to less volatility aka less possibilities for good trading chances

What does it mean to me?
Under these premises every "homo oeconomicus" will decide to:
- leave this market / provider much sooner than later (or too late)
- checking for alternative markets - scanning alternatives and discuss them here on futures.io (formerly BMT)
- hop on the new boat sooner than later to profit longer

GFIs1
who thinks to have understood "THIS CME signal"

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  #97 (permalink)
 Vendor: tradingcode.net 
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GFIs1 View Post
(...)
What does it mean to me?
Under these premises every "homo oeconomicus" will decide to:
- leave this market / provider much sooner than later (or too late)
- checking for alternative markets - scanning alternatives and discuss them here on futures.io (formerly BMT)
- hop on the new boat sooner than later to profit longer
(...)

I agree with your facts, but disagree with what does this mean to 'me'/traders. Alternative FX futures, such as those on ICE and Eurex (discussed in this thread), simply don't have (enough) liquidity to make 'leave the CME market' idea an viable one.

The additional data costs for a non-professional trader (taken from Mike's post here) are very limited:

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Or, in other words, this can also be seen as a small liquidity premium embedded in the data costs.

I don't think these costs are hefty enough to trade instruments with far less liquidity (but I might be mistaken).


Last edited by Jura; December 6th, 2013 at 07:43 AM. Reason: Typo
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  #98 (permalink)
Market Wizard
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Jura View Post
Alternative FX futures, such as those on ICE and Eurex (discussed in this thread), simply don't have (enough) liquidity to make 'leave the CME market' idea an viable one.

..maybe we try to distinguish between FX and index futures:
even I am not following the fx - the mentions about the index futures should behave quite similar for fx.
Market participants do follow a certain pattern - unregarded the specific market.

GFIs1

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  #99 (permalink)
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GFIs1 View Post
..maybe we try to distinguish between FX and index futures:
even I am not following the fx - the mentions about the index futures should behave quite similar for fx.
Market participants do follow a certain pattern - unregarded the specific market.

I do not think I understand you. What do you mean with 'mentions about the index futures should behave quite similar for fx'?

Furthermore, that market participants follow a pattern is an obvious statement, but I do not see how that's relevant here. What kind of 'certain pattern' are you talking about?

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  #100 (permalink)
Market Wizard
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Jura View Post
... that market participants follow a pattern is an obvious statement, but I do not see how that's relevant here. What kind of 'certain pattern' are you talking about?

only about homo oeconomicus behaviour - (as mentioned)
..should be the same in every market.

see Wikipedia:
"Homo economicus is a term used for an approximation or model of Homo sapiens that acts to obtain the highest possible well-being for him or herself given available information about opportunities and other constraints, both natural and institutional, on his ability to achieve his predetermined goals. This approach has been formalized in certain social sciences models, particularly in economics."*

GFIs1

* Homo economicus - Wikipedia, the free encyclopedia

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