Broker/Data: Advantage Futures, Ninja/TT and InvestorRT/IQFeed.
Favorite Futures: Treasury futures
Posts: 275 since Nov 2010
Thanks: 161 given,
Actually, I don't think the CME cares in the least about membership prices, I think they would prefer that the Memberships all go away. There are contractual reasons this is not likely to happen. What this is really about is the CME generating the highest level of clearing fee revenue possible from its order flow consistent with its rules. It stems from the fact that every trader standing in a futures pit had some sort of membership privilege, and was theoretically making all trading decisions and executing trades on his/her own. Order flow generated by nonmembers had a higher priced fee structure. In a HFT situation for sure and possibly in an algo situation, there is quite likely a team effort; nonmembers are involved in the decision making and possibly in the execution process. Under that scenario, the CME is claiming that a different fee structure applies, correctly in my (biased) opinion.
"You don't need a weatherman to know which way the wind blows..."