Are there any Fee-Rebate programs for high volumes of equity options?

D

d0rian

I just noticed today that the CBOE has a Frequent Trader Program, but it seems from a glance that it only applies to volume on 3 option instruments: VIX, SPX, RUT (?) My volume often exceeds the 10K / mo threshold for the program, but it's mostly in equity options on individual underlyings. Does anyone have any familiarity with the CBOE or any other option exchange's fee-rebate programs? It would seem odd that equity options wouldn't count towards the threshold...
At the end of the day, I'm just trying to get a handle on all of the fee rebate programs my volume may make me eligible for.
 
Hi d0rian - The CBOE provides volume discounts on their CASH settled index options IMO because they have a monopoly on them so there is no way to avoid those exchange fees. On some of our software, you can avoid option exchange fees by using our Option SMART route for equity options. We will pass through CASH settled index options. At your volume, I would check out Sterling Trader Pro where you can access a SMART route or send your orders toward an options exchange and be subject to their schedule.
 
Thanks for reply; yes, I figured it had something to do with those VIX / SPX / RUT instruments being perhaps only available through them directly...whereas the fragmented nature of the equity options market I'm guessing means that my orders can be getting filled on any number of smaller exchanges (and I doubt that my volume on any of those exchanges alone would put me above whatever threshold they may have for a fee rebate program, which I'm guessing they don't offer anyway...)
If I'm reading your reply correctly, you're saying that with your software, you'd pass along those fee rebates to some eligible clients for those Cash-settled index options (i.e. VIX,SPX,RUT), but for equity options I'm likely out of luck, and will be stuck with whatever exchange fees are set by the ECN's.
 
We always pass through the cash-settled index exchange fees. On Lightspeed Trader they are flat fees as we do not track them on that software. On Sterling Trader Pro, Realtick and Silexx, we track exchange fees and offer a SMART route which avoids option exchange fees on other options symbols except for cash-settled indexes. Or, you can send it to an exchange and be subject to those fees. Call me if you want more details.
 
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