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

  #121 (permalink)
Elite Member
san francisco, ca
 
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bob7123 View Post
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


Bob my suspicion is that CME does not care what we are doing, they will charge the broker a certain amount based on the number of accounts they have and if they are pro or non-pro. The broker will then enforce the "access" via the username like happens today, where you can login with an account in one or maybe up to two locations before you are forcibly disconnected from another.

So I think if you are logged into two "services" that get data from CME I think they will make us pay twice.

For example today I use Zenfire a primary data source and broker connection, and then also have Kinetick for backup data and certain market internals etc that I do not get from ZF. I suspect under the new regime, this gets billed twice.

Given I trade out of an LLC, that could be crushing amounts of money!

I will wait and see what the final ruling on the LLC thing is going to be, but if I am looking at $000's of extra for data, then I will either trade as an individual or move to other non CME markets/instruments etc.

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  #122 (permalink)
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I hate the fees but it really put much more emphasis on using a more open / better platform where the data is more easily exportable between systems at runtime.

That appears to be the only way around this.

Incidentally i use two connections to IB so presume two fees are payable as i have market data for both.

I hope to move out of this structure to move completly `open` so i dont get impacted by this.

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  #123 (permalink)
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If you trade say 3 products, GC, CL & Index Futures that would be $255/month and slightly higher per contract fees. Is this really that big a deal? what am I missing

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  #124 (permalink)
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It's not so much the fee as the concept

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  #125 (permalink)
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neko333 View Post
If you trade say 3 products, GC, CL & Index Futures that would be $255/month and slightly higher per contract fees. Is this really that big a deal? what am I missing

How do you arrive at $225/month. Can you explain a bit more

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  #126 (permalink)
 Vendor: www.iqfeed.net 
Omaha NE
 
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marcopolo1 View Post
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?

This means that to qualify for Non-Pro exchange fees, you will need to meet the same criteria now required to receive Globex waivers. Real-time Globex data being fed to a trade-capable software, and a funded trading account with a participating broker which supports that software. Brokers who now participate in the waivers program will continue to verify funded accounts each month, but eff Mar 1, 2014 (new waivers customer cutoff) it will be to validate Non-Pro status instead of waivers qualification.

My thinking is that if one is now getting Globex data and doesn't have waivers, it might make sense to get waivers prior to Mar 2014 cutoff. It may mean opening a minimally funded account with a different broker who participates in the program and supports your software. If you are using a software you can't trade through, like Ensign for example, It may mean having an additional (trade-capable & supported by your participating broker) software running in the background and being fed by same data feed so you can get waivers.

There are advantages to having waivers before Mar 2014, whether you are a Non-Pro or Pro per CME Group rules. First, you will keep the waivers through 2014, provided you don't make changes to your broker/feed/software during that time that would make you disqualified. Second, eff Jan 1, 2015, as a Non-Pro you will pay the lower Non-Pro fees for Globex data, and as a Pro you will pay just 50% of the published Pro fees for Globex data.

Just some food for thought.


bob7123 View Post
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

If you have IQFeed and your software on one computer and your broker trading platform on a different computer, even as a bona fide Non-Pro per CME rules, you will pay Pro fees for IQFeed because you can't qualify for waivers that way. It won't matter if you're an LLC or not with that setup. Besides paying IQFeed Pro fees you would also be paying $15 to your broker for providing Globex data on the other computer.

My point is, if you can't qualify for waivers, you will pay Pro fees for Globex data whether or not you are trading through LLC.

Robert

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  #127 (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

Just a question that I think you have probably been pondering, is it still worthwhile to stay in an LLC? Does the extra charges at the front end outweigh the potential deductions and write offs that you get on the back end? I would think not but dang that is a big chunk of change to swallow. I am curious as I have an LLC setup ready to go when I either get funded or go live with my own money.

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  #128 (permalink)
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What a ridiculous money grab by the CME? Make it to expensive to trade and traders will find other products elsewhere. Will be interesting to see if liquidity starts to change on things like CL. There are alternatives like WTI on ICE. Things like WTI are not as liquid as CL so CL is better now. But what happens if WTI becomes the more liquid contract for example. CME better realize traders are only married to some of their products because they offer the most liquidity etc but that can change. If CME goes through with this I hope we start getting volume on other exchanges in similar contracts and CME comes back in a year begging for customers to come back. Bad idea for CME to tick off their entire customer base.

"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."

Last edited by liquidcci; December 10th, 2013 at 04:03 PM.
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  #129 (permalink)
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liquidcci View Post
Bad idea for CME to tick off their entire customer base.

That's just it though, retail is not their base. Their base is the volume pushers or "liquidity providers", for which these changes would have less than marginal impact I would imagine.

Mike

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  #130 (permalink)
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Big Mike View Post
That's just it though, retail is not their base. Their base is the volume pushers or "liquidity providers", for which these changes would have less than marginal impact I would imagine.

Mike

Mike you are probably right. I guess we have no way of knowing what the retail guys as a whole bring in from a liquidity perspective at least that I am aware. Question is collectively is it enough to change structure of some of these markets enough to cause the big fish to seek out other markets? Probably not but would be nice to see CME take a hit from this.

"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
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