Exchange membership

[nemesis45]

There is a substantial difference between commissions for a lessee and seat owner.

Seats are not a bad investment with a 4-6% yield. However, there is a requirement that you own 950 shares of CME.

http://www.cmegroup.com/company/files/CME_Fee_Schedule.pdf

Thank you for that.
So net fee per side = CME Globex clearing fee + Globex fee + other applicable fee?

How do seats return yield :S. (apart from fee discounts, that is.)

 

[xandman]

Yield on Leasing it out based on current rates. Obviously, you won't be trading.

I am not familiar with the costs of just holding the seat though.

 

[trade_canada]

CME Group Membership Pricing

There ya go! Owning a seat is really only beneficial if you trade some big boy volume or need spread margin for some funky combinations, or wanna look like a bada$$

 

[nemesis45]

It helps if you are a firm doing big volumes.
A lot.
Can always lease out a seat if you are an individual trader i guess

 

[trade_canada]

+1 for leasing, seats have lost value since co-location became feasible and I can't foresee any reason for them to gain value.