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New CME fees on multiple platforms?


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New CME fees on multiple platforms?

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  #11 (permalink)
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SMCJB View Post
I'm not sure that's actually the case. Referencing the thread that @Big Mike already linked...






"This will be available to individual members, employees of member firms and Introducing Brokers who receive data from their clearing member firm."

This does not reference customers of introducing brokers or FCMs.

Matt

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  #12 (permalink)
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It should be noted that the public is tired of taxes and fees and charges just to be a member or participating customer, in addition to their individual high and very expensive cost of doing business with these CME Emini products.

No customer has any hearing ear from any quarter over their costs of:
1) their higher speed internet services
2) their personal office space investment
3) their personal investment in state of the art computer equipment, both multiple monitor systems and advanced computer gamer rigs capable of handling the demands that trading applications require
4) their dedicated office space, heating, lighting and extra high electricity demands upon their residences or commercial office spaces
5) their commission structures, which do not adjust based on volumes, similar to CME exchange members do
6) their non-interest bearing margin accounts of which they have no reduced or blended rate adjustments as similar CME exchange members do
7) their investments in education, memberships, participation forums, textbook, webinars and other publication subscriptions expenses

all of these hidden costs just to be capable of trading these CME products, and now insult to injury, even more fees, whether monthly usage for low volume months, or monthly per screen usage fees (proposed or any variant thereof)

all of these insults and yet they keep sticking more pins into the pin cushions hoping that even more cash will come out...

any you wonder why more and more are shifting over to Equity, Index, ETF and Futures Options trading and away from CME Emini futures, or simply going all the way over to full time Fx Currency pairs trading....

a strong word of caution is in order from those whom would otherwise not be so vocal is in order....

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  #13 (permalink)
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kronie View Post
any you wonder why more and more are shifting over to Equity, Index, ETF and Futures Options trading and away from CME Emini futures, or simply going all the way over to full time Fx Currency pairs trading....

Clearly you have the right to choose what asset class you wish to trade but consider that stocks require 25K for day trading, stock you need to pay interest if you are short (borrowing costs), Index has no leverage, and FX cash could at times have larger spreads during news announcements with some dealers as oppose to CME where spreads are more stable from my observation.

To me it seems that there is more interest today worldwide than any other time especially in CME products.
CME Group Announces Open Interest Record for FX Futures and Options - CME Investor Relations

Matt

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  #14 (permalink)
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mattz View Post
Data distribution it not free.
Data is disseminated via pipes and the more are connected to it the more it costs.
Cost of technology went up, so customers, brokers and other professionals are being affected by this.

Matt

Come on Matt...they are doing it because they are greedy and have little if no competition. When interest rate volume cranks up again do u think they will eliminate or drop the platform fee because of their increased revenue? I doubt it. The leaders of the CME will stuff their pockets first before they help out the retail trader.

This decision is based on greed and little to do with passing on cost. It is about their compensation and shareholders and with no completion the customer is really not much of a consideration.

I have been a member of. CBOt for 20 plus yrs...

The Market is Smarter than You Are
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  #15 (permalink)
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tflanner View Post
Come on Matt...they are doing it because they are greedy and have little if no competition. When interest rate volume cranks up again do u think they will eliminate or drop the platform fee because of their increased revenue? I doubt it. The leaders of the CME will stuff their pockets first before they help out the retail trader.

This decision is based on greed and little to do with passing on cost. It is about their compensation and shareholders and with no completion the customer is really not much of a consideration.

I have been a member of. CBOt for 20 plus yrs...

the customer is not part of the equation because of arrogance of greed... The often quoted excuse of having their shareholders interests in mind and having to answer only to them is trotted out and used but really has nothing to do with the idea that, that customer segment (the sophisticated public that uses those services and products CME offers for trading revenue or hopes of profit) has no representation and ends up bearing the brunt of the expenses. @Matt and others fail to realize that those data pipes or networks / servers are and have been paid for going into future replacements of the present infrastructure, and none of these fees represent present costs or expenses.

ever wonder why a toll road, still collects tolls, long after the road and a healthy budget for maintenance and repairs have already been funded?


its a business model that is discussed and studied in B- School, time and time again. The discussion also veers into the Public Policy arena that future public servants study in similar classes, and that discussion morphs into why you never propose to eliminate an existing tax long after its purpose has been accomplished, even if it predates your administration or even lifetime, you simply leave it in place.

@Optimus in their quote of volumes being at all time highs, really I have no idea what those statemens are supposed to suggest or mean.

Customers are fluid, and base their participation in and use of those CME products based on expenses. Proprietary Equity trading desks were all the rage until their expenses rose beyond a normal persons liklihood of profitability, as well as the nasty matter of Prime Brokerage services rolling up and eventually being something that the full faith and credit of the US Treasury had to bail out, irrespective of which major institution the originating Omnibus accounts came from. Those events along with the advent and preference of the basket trades and ETF's took precedence over individualized stock trading spelled the end of their rosey future, although it still took time before more and more Prop Shops (as they were called) to fold; they folded nonetheless.

Emini futures trading is following the same arrogant path, so well trodden by previous vehicles, or as someone said: "asset classes", have gone down.

shame they don't teach reality lessons in B-School, just perpetuality and blue sky lessons, as if: "life is a box of chocolates...", and you know which wise man said that...

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  #16 (permalink)
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I personally think it is a dumb fee. I would like to think it will go to improve technology and benefit us all but I have my doubts that it will. But $15 monthly if you are not a pro is a tick and half 1 contract on most markets. Just not enough to be concerned about. Pro designation gets materially more expensive but even then most with pro designation probably trade more than 1 contract so should be absorbed easily(if profitable). I am not for the fee but has no real effect on my bottom line so can live with it.

"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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  #17 (permalink)
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liquidcci View Post
I personally think it is a dumb fee. I would like to think it will go to improve technology and benefit us all but I have my doubts that it will. But $15 monthly if you are not a pro is a tick and half 1 contract on most markets. Just not enough to be concerned about. Pro designation gets materially more expensive but even then most with pro designation probably trade more than 1 contract so should be absorbed easily(if profitable). I am not for the fee but has no real effect on my bottom line so can live with it.


tick bytes

what you just described are skimming a few sheets off the ream of paper.

somehow they knew that so many would respond, in a similar manner as you described. what remains troublesome is the notion that "they" can disrespect the very same unexpected customer base, which has contributes so handily to their unexpected volume increases and profitability equation.

Commodity products are crafted, designed and proposed in such a manner as to attrack "risk attention or participation of those on the other side of the trade", in exchange for possibly outsized profitability chances. Commodity products are really for the Hedgers, not the Speculators. When the participation from the Spec crowd rises to the levels and exceeds the levels of the Hedgers, then that outcome, as unexpected as it remains, represents pure profit. Sacking that profitability with fees is pure greed magnified by arrogance and more greed. Messing with the equation of attracting participants to these products and changing their profit profile completely upsets "their" basis for participating.

Wise merchants do not byte (bite) the hands that feed them, stupid merchants do. Another more easily understood proverb goes like this: don't look a gift horse in the mouth, you might find his cavities and loose interest.

These fees upon fees and yet again, insult to injury upon those who must maintain multiple platforms / monitors, now having even more fees simply causes the customer to re-evaluate their risk profile and profit potential and seek better opportunities elsewheres.

logical and simple conclusion....

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  #18 (permalink)
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If a $15 monthly fee is materially affecting ones profitability then one should rethink trading futures. Just saying....

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Seahn View Post
If a $15 monthly fee is materially affecting ones profitability then one should rethink trading futures. Just saying....

$340/month for professionals. That's $4080/year and isn't insignificant.
That also assumes your only paying the fee once and not multiple times for multiple accounts/systems/devices.

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kronie View Post
tick bytes

what you just described are skimming a few sheets off the ream of paper.

somehow they knew that so many would respond, in a similar manner as you described. what remains troublesome is the notion that "they" can disrespect the very same unexpected customer base, which has contributes so handily to their unexpected volume increases and profitability equation.

Commodity products are crafted, designed and proposed in such a manner as to attrack "risk attention or participation of those on the other side of the trade", in exchange for possibly outsized profitability chances. Commodity products are really for the Hedgers, not the Speculators. When the participation from the Spec crowd rises to the levels and exceeds the levels of the Hedgers, then that outcome, as unexpected as it remains, represents pure profit. Sacking that profitability with fees is pure greed magnified by arrogance and more greed. Messing with the equation of attracting participants to these products and changing their profit profile completely upsets "their" basis for participating.

Wise merchants do not byte (bite) the hands that feed them, stupid merchants do. Another more easily understood proverb goes like this: don't look a gift horse in the mouth, you might find his cavities and loose interest.

These fees upon fees and yet again, insult to injury upon those who must maintain multiple platforms / monitors, now having even more fees simply causes the customer to re-evaluate their risk profile and profit potential and seek better opportunities elsewheres.

logical and simple conclusion....


I hear what you are saying. But even with multiple platforms the fees are small. Just a blip on my monthly statement so it is an immaterial cost in the scope of trading if profitable. If not profitable it won't be the $15 fee that takes someone out of the business. Yes they are essentially skimming but does not matter much.

"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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