CME offers further Globex price incentives
06 February 2004 | 437 views | 0
Chicago Mercantile Exchange Inc. (CME), today announced it will offer two additional pricing incentive programs to further develop its customer bases in North America and Asia.
Effective April 19, CME will introduce a new Electronic Corporate Membership Program (ECMP) to offer a flexible, cost-effective alternative for electronic proprietary trading groups and trading arcades that are not eligible for CME's existing membership categories and fee incentives. Program participants will be eligible for special GLOBEX(R) transaction and clearing fee incentives of 44 cents per side for all CME interest rate, commodity, foreign exchange and E-mini(TM) stock index products. Applicable membership requirements will be waived through October 2005. CME members who have held trading privileges during the last two years are not eligible for the new program.
Additionally on March 1, CME will launch a new 18-month Asian Incentive Program (AIP) for hedge funds and banks located in the Pacific Rim. These organizations represent another potential high-growth customer segment for the Exchange. Applicable membership requirements will be waived throughout the term of the program and program participants will be eligible for the following special GLOBEX transaction and clearing fees:
Eurodollar futures and options contracts: GLOBEX fees 44 cents; Pit fees 49 cents
E-mini(TM) stock index futures and options contracts (including S&P 500(R) and NASDAQ-100(R) contracts): GLOBEX fees 54 cents
CME eFX (electronic foreign exchange) futures and options contracts: GLOBEX fees 70 cents
*Fees noted above include all GLOBEX and clearing costs.
"Since launching our European Incentive Pricing Plan in November, more than 200 traders have registered and 20 firms have requested connectivity to GLOBEX," said CME Chairman Terry Duffy. "By building on the initial success of our efforts in Europe and making similar programs available around the world, we will expand our global presence and increase trading volumes on GLOBEX."
"Electronic trading is an important element of our growth strategy and now represents more than half of CME's revenues," said Craig Donohue, CME Chief Executive Officer. "These incentive programs allow us to tap into new business opportunities from very specific market segments that offer significant growth potential for CME."
All major CME products trade on GLOBEX, which is available globally 23-1/4 hours a day, five days a week.