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

  #111 (permalink)
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Perhaps Big Mike could start a poll where everyone can indicate what status they will be under the new rules?

Pro
Non-pro
I use a corporation/LLC to trade

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  #112 (permalink)
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CME Fee changes 2014, significant impact

What are the criteria to qualify for non-professional subscriber?

1) NON-PROFESSIONAL SUBSCRIBER - Any natural person whom a market data Distributor has determined qualifies as a "Non-Professional Subscriber" and who is not:
(a) Registered or qualified with: the Securities and Exchange Commission, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association, nor
(b) Engaged as an "investment advisor" as that term is defined in Section 201(11) of the Investment Advisor's Act of 1940 (whether or not registered or qualified under that Act), nor
(c) Employed by a bank or another organization that is exempt from registration under Federal and/or state securities laws to perform functions that would require him or her to be so registered or qualified if he or she were to perform such functions for an organization not so exempt.
2) Subscriber must be viewing the data via a device capable of routing orders to CME Globex and have an active/capitalized futures account.
3) Subscriber must NOT hold or lease any type of membership at any of CME Groupís DCMs.
4) Any person who does meet the above criteria (1, 2 & 3) is considered a Professional Subscriber.

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


Correct me if I'm wrong, but I do not see where trading as a LLC is mentioned.

Or are they considering being employed by your LLC as an "investment advisor" to your company?

Nice thing about this thread is, I now have a list of questions to put towards my broker once they do get back to me.

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  #113 (permalink)
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Fritzk View Post

1) NON-PROFESSIONAL SUBSCRIBER - Any natural person whom a market data Distributor has determined qualifies as a "Non-Professional Subscriber" and who is not:

A LLC is a legal person, not a natural person.

Math. A gateway drug to reality.
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  #114 (permalink)
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CME Fee changes 2014, significant impact


traderwerks View Post
A LLC is a legal person, not a natural person.

Thx u

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  #115 (permalink)
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Fritzk View Post
What are the criteria to qualify for non-professional subscriber?

.....
2) Subscriber must be viewing the data via a device capable of routing orders to CME Globex and have an active/capitalized futures account....

Subscriber must be viewing the data via a device capable of routing orders to CME Globex
What does this mean? Have an internet connection? Have a software able to connect directly/(or not?) to CME globex for orders?

Interestingly, there is no restriction on analyzing the data as long you don't look at it (which should refer to charting)...

Also, does 'data' refers to real-time data only, and/or stored data, and/or delayed data?

It seems to me the intend is that non-professional subscriber data should only be use for charting and ordering... but who knows...

What is your interpretation?

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  #116 (permalink)
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steve2222 View Post
Hi @Deucalion

Are the other options that are more secure than the futures industry the names you mention in the 2nd paragraph above?

I have often toyed with the idea of exploring the FX offers more thoroughly as it potentially offers better options for someone in my time zone and helps a little bit with risks associated with having funds with an FCM in the US when I am a foreigner.

Like Canada, we have ask to CFD products, but I have steered clear of those as they are mostly market makers and shut you account down or take other steps if you start to beat them on a consistent basis.

@steve2222, CFD's are stupid - a broker will clearly tell you that he is counter party to it. Why bother. Trade Futures instead.

As far as alternative investments are concerned, I had chosen Managed FX. The reasons were following -
  • In the 2 jurisdictions I could open an M-FX account (UK and/or AUS); the FSA (UK) and ASIC (AUS) regulations are stricter than in the US.
  • Neither of the these places have the stupid FIFO regulation that is enforced in Canada/US.
  • None of these places forced me to use that stupid MT4 platform (no broker will tell you but everyone one of them uses a plugin/bridge into that MT4 trade matching stream.) Even IC Markets (AUS), through which I use the cTrader account has an MT4 offering that I do not trust. Brokers making a claim of NDD or DMA or ECN-STP and then offering an MT4 platform is a signal to run the heck away.
  • Because FIFO is not enforced, hedging positions in the same account is possible - this allows a great deal of control of exposure.
  • IF you chose your brokerage carefully, and if you have a decent size account they will be happy to provide you with a list of their liquidity providers including the routing engine to those liquidity providers (for example a 3rd party matching engine like Traiana that matches quotes directly to those banks) - When I asked these questions from brokers in Canada/US they didn't seem too interested in talking to me in plain speak (I have little patience for roundabout answers, and arcane obfuscation, that is generally a tip off)
  • Compounding is easier in FX.

The downside is -
  • In a managed FX account I lose alpha. Returns will not match a good discretionary trading approach. This is a very big downside. Unfortunately after PFG I was forced to re-assess what was important. I don't think I could survive another PFG like event. So I had to make sure that I built some diversification in where my capital was and how it was deployed.

I am not saying this is right for you, but for me, it helped to break down what needed to done to pay the bills and what needed to to be done in generating wealth.

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  #117 (permalink)
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The most recent news I've heard is that the CME is not going to reconsider the new definition for professional status, which as it is stated today will include LLC's. This is bad news for me...

But maybe in another couple days it will change again, I can only hope.

Mike

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  #118 (permalink)
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Big Mike View Post
The most recent news I've heard is that the CME is not going to reconsider the new definition for professional status, which as it is stated today will include LLC's. This is bad news for me...

But maybe in another couple days it will change again, I can only hope.

Mike

That bites the big one ...

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  #119 (permalink)
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Big Mike View Post
The most recent news I've heard is that the CME is not going to reconsider the new definition for professional status, which as it is stated today will include LLC's. This is bad news for me...

But maybe in another couple days it will change again, I can only hope.

Mike

Am in a similar boat. I would also consider dissolving the LLC, but would have to study that more ti understand the full implications

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  #120 (permalink)
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Big Mike View Post
The most recent news I've heard is that the CME is not going to reconsider the new definition for professional status, which as it is stated today will include LLC's. This is bad news for me...

But maybe in another couple days it will change again, I can only hope.

Mike

Here's a question:

FT71 told us that has the usual multi monitor setup, but his actual trading PC is a separate computer with no other apps on it.

Can someone have a similar architecture, sign up for IQFeed as an individual, display data on a multi monitor rig, and then have a separate trading computer make a connection to their broker and trade in a LLC account?

It seems to me that merely having a LLC should not disqualify me, after all I could be an individual trader with an LLC that sells car parts on eBay or whatnot.

Or maybe that wouldn't save much. Perhaps the CME would still charge the LLC account exorbitantly just to display the DoM.

Anyway, I'm just putting this out to see what people think.

-Bob

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