Eurex, Chicago Exchanges get ready to rumble

Release: 4844-03
For Release: September 26, 2003

COMMENT PERIOD FOR U.S. FUTURES EXCHANGE (EUREX US) CONTRACT MARKET APPLICATION EXTENDED

The period for submitting comments on the U.S. Futures Exchange’s (Eurex US) contract market designation application has been extended by Commission staff until October 16, 2003. Eurex US submitted its application to the Commission on September 16, 2003. On that same date, the application was posted on the Commission’s website with notice of a 15-day comment period ending October 1, 2003. Subsequently, interested parties have requested that the comment period be extended. In order to ensure that all parties have a reasonable opportunity to review and comment on the Eurex US application and that the Commission has adequate time to consider comments and to complete its review within the 60-day fast-track review procedures, the comment period has been extended by an additional 15 days until October 16, 2003, providing for a 30-day comment period.

Comments on the Eurex US application may be submitted electronically at submissions@cftc.gov. All comments will be promptly posted on the Commission’s website (http://www.cftc.gov/dea/deasubmissioncomments.htm).
 
In the release, they say:
------------------------------
At the same time Eurex US will offer trading at cost levels far below those currently paid in the U.S. market. The vast majority of trades will be priced at 20 cents per contract or less depending on participation in incentive schemes."

It added that the execution of an individual trade, irrespective of volume, would cost no more than $0.30 per contract.
--------------------------------

* Who is getting the price 20-30 cents/contract, is that us, the traders, or the broker?

* And if it's the broker, what's their price today, and what price could we traders expect to get?
 
Well, they just want to tell traders that their exchange fee will be
around $0.30 vs. CME´s "exchange fee" (aka rip-off) of about $1.14.

:D
 
Yes, the fee schedule is very favourable for Eurex.

However, the A/C/E system is PURE BULLS**T!

It is still based on 64kbit connections, not all trades are transmitted to market data vendors (see my other Eurex Thread) .

Generally it has no chance when it comes
to a technical comparison with LIFFE connect,
which is CBoT's new choice.

I hate Eurex (A/C/E) for it's system.
 
Quote from FX-Trader:

Well, they just want to tell traders that their exchange fee will be
around $0.30 vs. CME´s "exchange fee" (aka rip-off) of about $1.14.

:D
More...

Do I get this right FX-Trader?

Today the exchange charges about $1.14, charges that the broker pays, who in his turn charges traders about $5, leaving the broker with about $4 for costs and profit.

If the exchange's price would come down to $0.30, that would make it $0.84 cheaper for the broker, who in his turn could lower the price for traders with about the same amount. A good guess could be down to about $4, ie 20% lower commission. Not a huge difference in that case...
 
No, it´s more like (all halfturn):

$0.50 goes to broker
$1.14 goes to CME
$0.02 goess to NFA
-------------------------
$1.66 total cost (E-Mini futures/halfturn)


$0.50 goes to broker
$0.30 goes to Eurex
$0.02 goess to NFA
-------------------------
$0.82 total cost (E-Mini futures/halfturn)

:D
 
If A/C/E is going to disappear, how would contracts like ZN(10-year Note) be traded? Will CBOT get its own electronic exchange?
It is confusing if the same contract is traded on two exchanges.:confused:
 
CBOT cuts fees for electronic trading in a salvo at Eurex US

By Mark Skertic
October 22, 2003

To compete with Eurex US, the Chicago Board of Trade has borrowed from the playbook of retailers and manufacturers: When someone wants to take your market share, try to come up with something that's better and cheaper.

On Tuesday, the Board of Trade's leadership said that fees for electronic trading are going to drop, and that the lower costs will save market users an estimated $60 million annually. The new fees are scheduled to be in place on Jan. 1.

Fees were reduced in anticipation of Eurex's arrival in the U.S. The Swiss-German exchange, the largest futures exchange in the world, has announced plans to open Eurex US by Feb. 1.

But those plans hinge on regulatory approval, and last week federal regulators said they were taking Eurex off fast-track approval so they could take a closer look at the application.

Bernard Dan, the Board of Trade's president and chief executive officer, said the Eurex application should get more scrutiny because it leaves many questions unanswered.

Eurex, he said, has made promises in its public statements, but has not addressed those points in its application with regulators.

"What you don't do is apply with one business plan and market with another," said Dan.

A spokesman for Eurex declined to comment.

The Board of Trade has been gearing up for Eurex's anticipated arrival for months. On Tuesday, Dan and Charles Carey, chairman of the board, outlined their fee plan.

"Our future rates will be at, or significantly below, all published rates of any prospective competitor," Dan said. "And there's no opaqueness about pricing. It is what it is."

Eurex CEO Rudi Ferscha has said his U.S. exchange will charge a maximum of 30 cents per contract, with most trades priced at less than 20 cents per contract. He also said the exchange would commit to holding those prices for five years.

For Board of Trade members, the average rate will be 5.5 cents per trade, down from 12 cents. Non-members using a member's account will pay on average 22.5 cents a trade, down from 27.4 cents.

Those two categories account for about 80 percent of trading, Dan said. The remainder is non-member account trading, where the average trade will cost 85 cents, down from $1.05.

Copyright © 2003, Chicago Tribune
More...
 
Quote from CoolTrader:

If A/C/E is going to disappear, how would contracts like ZN(10-year Note) be traded? Will CBOT get its own electronic exchange?
It is confusing if the same contract is traded on two exchanges.:confused:
More...

LIFFE connect is the new system.

It is far better than the shitty Eurex
ACE platform.
 
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