CME Group to waive fees on S&P 400 contracts from 3/08 - 12/08

[JayS]

Might have already been posted, but I don't see it.


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CME Group to waive fees on S&P 400 contracts
Fri Feb 15, 2008 9:13am EST

NEW YORK, Feb 15 (Reuters) - CME Group Inc (CME.N: Quote, Profile, Research), which runs the world's largest derivatives exchange, on Friday said it will waive CME Globex and clearing fees for all Standard & Poor's MidCap 400 and E-mini S&P MidCap 400 Index futures and options on futures.

The waiver will begin on March and continue through December, CME said. The waivers are similar to existing fee waivers for S&P SmallCap 600 products, CME said. (Reporting by Jonathan Stempel; Editing by Steve Orlofsky)

 

[buzzy2]

Trying to push alternative to Russell 2000

 

[RedDuke]

It has a good chance of succeding. I have heard from some people that they will not migrate to trading on ICE and will stick with globex. They most trade ER.

 

[o10maximus]

Is it likely the cme will lose the russell (er) to ICE?

 

[Truff]

Quote from buzzy2:

Trying to push alternative to Russell 2000

Problem is these products have NO liquidity at all. That will change if more traded it of course. Good luck to the first few. LOL Just think of the $ the CME will lose from not having the ER. Somehow i dont feel bad for them. The exchange fees are way to high to begin with.

 

[Pa(b)st Prime]

Quote from o10maximus:

Is it likely the cme will lose the russell (er) to ICE?

Yea. Done deal.

 

[RedDuke]

Does anyone know Russell rationel for doing this change? Globex looks like ag reat fit for this product.

 

[Businessman]

Quote from Truff:

Problem is these products have NO liquidity at all. That will change if more traded it of course. Good luck to the first few. LOL Just think of the $ the CME will lose from not having the ER. Somehow i dont feel bad for them. The exchange fees are way to high to begin with.

EMD averages 25,000 contracts a day and on high volume days gos as high as 60,000. Thats not 'NO' liquidity.

But EMD needs to do a minimum of 100,000 contracts a day to be suitable for day trading.

If enough ER2 day traders move over it could reach that..

 

[o10maximus]

Quote from Pa(b)st Prime:

Yea. Done deal.

I was hoping that somehow the cme would pull a deal out of their as* to win it back. It's gonna be like losing a great friend or a frequently used appendage.

 

[h hubbins]

the only way cme gets er back is if there isn't enough volume on ice and russell had the foresight to stipulate a given volume in the contract. i'm guessing the guys at russell aren't stupid and stipulated some volume requirements in their contract.

i've heard that a lot of the small cap funds are pegged to the r2k index in their by-laws and so they can't use anything else. they go where the contract goes is my guess.


supposedly the ice came in with a last minute take it or leave it offer that russell couldn't ignore so they took it. i heard from a guy at the exchange that it was literally a friday offer and they said take it now, as in you can't hang up the phone and get another bid from cme and get back to me in 20 minutes.