Cost Structure for CME Futures Traders

Quote from millydog:

I'd imagine that if they choose to extend the program then seat prices may drop in the near term. I am thinking about purchasing the GEM seat but I want to wait for the anouncement first. I'd hate to buy it and then see the price drop in half after.
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Remember the corporate membership clearing rates are not the same as the leasee rates.
http://www.cme.com/clearing/clr/fees/rule106r7031.html
http://www.cme.com/clearing/clr/fees/lessememp1870.html

A leasee pays .46(.21 + .25) a side for the first 200 sides then it is reduced to .21. The reason for the reduction after 200 is the globex fee is capped at $50. The corportate member pays .44 a side.

The advantage of the corporate membership is in the FX(Currency) products. A corporate member pays .44 a side where as a leasee pays .52 a side.
 
Simple question I cant seem to find the answer to. If you lease an IOM at the Merc , which allows you to trade the ES and NQ, would you be able to trade the ER2 as well under that membership? In other words would I have to lease a IOM and a GEM seat if I want to trade both products (es and er2) at member rates? thx guys. good trading, Jim
 
Quote from jim c:

Simple question I cant seem to find the answer to. If you lease an IOM at the Merc , which allows you to trade the ES and NQ, would you be able to trade the ER2 as well under that membership? In other words would I have to lease a IOM and a GEM seat if I want to trade both products (es and er2) at member rates? thx guys. good trading, Jim
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Yes, you can trade anything equal to or below the membership you have. Example, if you have a IMM membership you can trade IMM, IOM, GEM.
 
Quote from AAloisio:

Yes, you can trade anything equal to or below the membership you have. Example, if you have a IMM membership you can trade IMM, IOM, GEM.
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thx AAloisio, thats what i thought but couldnt find a def answer. thx, jim
 
Instead of starting a new thread on this topic, I was able to hunt this one down.

Any updated info that can be shared? I am looking at this more myself and could use any updated advice or help.

Thanks!
 
Thought I'd give this thread a bump to see if anyone has more info or suggestions on this topic. I've contacted the CME and will post here what I found out.
 
its called a ecm. electronic corp membership, i would call the cme for details, great program, costs should be around 2.00 r/t for active traders.. depending on the clearing firm you choose,
 
The CME website isn't that clear (at least to me) in what the costs are to have a membership.

What I mean is, what is the startup, ongoing and then trading costs? Can you trade with any FCM or certain ones?

I'm trying to figure out at what point should someone consider a membership and what all costs are involved in it.

It'd be nice if the CME website was a little more clear, but I haven't found a simple explanation of everything.
 
Quote from brownsfan019:

The CME website isn't that clear (at least to me) in what the costs are to have a membership.

What I mean is, what is the startup, ongoing and then trading costs? Can you trade with any FCM or certain ones?

I'm trying to figure out at what point should someone consider a membership and what all costs are involved in it.

It'd be nice if the CME website was a little more clear, but I haven't found a simple explanation of everything.
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There isn't much to explain. You have to have a corp or LLC to get it. You pay $1,750 to apply. You must meet a minimum of 25 RT per day reviewed on a quarterly basis. If you don't meet that, then your membership is revoked for the next quarter and you are back on non-member rates. You would have to pay the $1.750 and reapply again to get back in. The rates for each instrument are listed on the FAQ.

It is simple really: If you trade more than 25 turns per day on average, then you should be on an ECM. The cost savings are huge compared to retail rates of around $4.80 per RT or so.

Anything else?
 
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