CME Membership - CTAs

H

heech

Hi guys,

Reading through the CME's membership section on their website gives me a headache. I thought I'd just lean on the combined expertise of everyone here...

How are clearing fees handled, for CTA-traded accounts? If I was a member, would my clients get discounts on trades as well?
 
Quote from heech:

Hi guys,

Reading through the CME's membership section on their website gives me a headache. I thought I'd just lean on the combined expertise of everyone here...

How are clearing fees handled, for CTA-traded accounts? If I was a member, would my clients get discounts on trades as well?
More...

No reason to ask unless you have $300 million under management.
 
Quote from bwolinsky:

No reason to ask unless you have $300 million under management.
More...
Uh, the numbers are dependent on trading volume, not AUM. And membership was already almost making sense for my pool a year ago. I've gained 50% in the pool in AUM since and am onboarding my first SMAs. If membership applies to my client accounts, then the numbers REALLY work.
 
Quote from heech:

Uh, the numbers are dependent on trading volume, not AUM. And membership was already almost making sense for my pool a year ago. I've gained 50% in the pool in AUM since and am onboarding my first SMAs. If membership applies to my client accounts, then the numbers REALLY work.
More...

Maybe a CME seat would be dependent on volume. The floor brokers and IB's in the pit though usually have this much ammo.

I'd trust my broker with a direct line before paying too much for a seat. It's only going to benefit you if you have any intention of ever being on the floor to trade size electronic markets simply can't handle without excessive slippage.
 
Quote from rmorse:

http://www.cmegroup.com/company/membership/membership-pricing.html#pricingType=1

You can lease a membership for around $2k per month. I believe the membership benefits apply to that entity. So, if your an LP with all your clients in one account, the entity will get the discount. If your a CTA with SMA, each account is owned by the investor, so they are not members. I believe they pay full rate.
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Funds don't get off that easily. They have special categories for those managing other people's money, usually requiring equity ownership. A LP trading prop funds have it easiest.

I'm not convinced about the CTA w/ SMA... I'm hoping that isn't the case. i'll follow up to this thread after I find out for certain.
 
Good point, I had overlooked that even though it actually happened to me once when I was a CTA..... Not too common unless you know a lot of locals, though.
 
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