CME Group, the world's largest and most diverse derivatives exchange, today announced it is expanding its international incentive programs to provide its global customer base with greater access to CME, CBOT and NYMEX products.
The incentive programs will include a simplified fee structure and will be extended until December 31, 2010.
"CME Group's commitment to its global customers is made even stronger through these expanded incentive programs," said Rick Redding, CME Group Managing Director, Products & Services. "In the last five years, our volume during non-U.S. trading hours has increased from four to 18 percent, and more than 250 participants have enrolled in our European, Asian and emerging market incentive plans. In the last two years, our international telecommunication hub volume has increased 218 percent. The extensions announced today will allow more firms to access these markets and continue to build liquidity around the clock, around the world."
The international incentives will include CME and CBOT products effective February 1, 2009. NYMEX products will be included April 1 for the International Incentive Program and the Asia-Pacific Incentive Program and later in 2009 for the Emerging Market Incentive Program. The programs include:
- The International Incentive Program (IIP) will enable proprietary trading firms and trading arcades located outside of North America to receive discounted fees for electronic trading of CME, CBOT and NYMEX products. This program was formerly limited to European proprietary trading groups and trading arcades under CME's European Incentive Program.
- The Emerging Market Incentive Program (EMIP) will provide fee incentives for CME, CBOT and NYMEX products trading electronically. The EMIP also will continue to encourage the development of new traders at proprietary firms operating in countries not actively involved in global futures markets. CME Group previously served this market segment through The CBOT Partnership Program, which are now being combined to form the EMIP.
- The Asia-Pacific Incentive Program (AIP), which provides discount fees for Asian banks, will now offer incentives to trade all CME, CBOT and NYMEX products.
Customers who participate in these incentive programs will be subject to minimum volume and application requirements.