Exchange seats - worth buying?
- Thread starter Ghost of Cutten
- Start date
I've just found out that some contracts I want member rates on requiring owning a seat, and are not available if you just have a lease - so pretty easy decision now. Thanks for the advice anyway.
Oh and as for those prices - seat bid/offer spreads are pretty huge, so you can probably improve your yield or cost by just being a bit patient rather than high-ticking the offer.
Oh and as for those prices - seat bid/offer spreads are pretty huge, so you can probably improve your yield or cost by just being a bit patient rather than high-ticking the offer.
Aitch Eff Tee
Guest
Which contracts?
That $1.4 million included an equity portion, present seats are strictly trading rights since demutualization occurred.
Quote from nazzdack:
1) ?.....The various CME seat prices appear to be "very high" compared to CBOT when comparing similar trading priviliedges.
2) The CBOT lease rates seem proper for what one can trade with respect to a "low" seat price creating the appearance of a "high percentage" on the seat price.
Nice to see logic that turns reality upside down and backwards.
I am interested in buying a CBOT membership soon( around 300k$).
Some advice about where the price is headed?
I have a hard time figuring how to gauge full membership prices compared to electronic firms programs like I use now( IIP for me , 0.75$ fee vs 0.14$ for full members ).
Thanks.
Some advice about where the price is headed?
I have a hard time figuring how to gauge full membership prices compared to electronic firms programs like I use now( IIP for me , 0.75$ fee vs 0.14$ for full members ).
Thanks.
I wonder how an overlapped chart plotting CME/Nymex/CBOT seat prices and the CME stock price would look...
Their Q1 revenues were down, and they are looking for the OTC Swaps market for salvation. And that has been traditionally where the ICE made it's bones.
Typically traders buy seats when they are having very good years and want to do something about the tax hit in terms of an accounting decision. That might be the bigger piece for you ultimately than worrying about future price trends.
There is no tax deduction for purchasing a seat. It is an asset that does not depreciate just like land or a stock. When you sell it that is when you pay capital gains if the price increased or write it off as a loss if it decreased.
As far as the CBOT membership goes if you are patient you could probably pick it up for around $280. It doesn't seem like it has wanted to go much over $300.
I don't know if this has to do with the exchange issuing and buying back memberships to help stabilize the price or if it is just the market doing that.
As far as the CBOT membership goes if you are patient you could probably pick it up for around $280. It doesn't seem like it has wanted to go much over $300.
I don't know if this has to do with the exchange issuing and buying back memberships to help stabilize the price or if it is just the market doing that.