Leasing A Seat At One Of The Exchanges!

[qazmax]

PCX seats are so low they pay you $400 to lease them. Of course you have to cover the rest of the month dues ($750 last I checked)

You used to have to pay $12,000 a month to lease one, highest I was aware.

Now the value is guessing the intrinsic value of ARCA stock. Factoring a risk of dues increasing, the exchange blowing through the coffers of $$$ ARCA gave it, and of course ARCA stock never amounting to much, plus the time value of the money you plunked down for the seat and the monthly unleased seat.

I say they are still over-valued. Once the BOX and the Eurex have options floors in the U.S. there will be no need of the smaller exchanges.

 

[mskl]

http://www.suntimes.com/output/business/cst-fin-cboe20.html



Check out this recent story about the CBOE. They are feeling the HEAT!!

 

[bone]

It's an electronic world, my man. The clowns here in Chicago are intent on giving the circus away. It makes no sense to own a seat on a floor when you can get it done cheaper, faster, and with more transparency and fairness in an electronic exchange. Seats at the CBOT, CME, and CBOE will never recover unless they convert ALL OF THE FLOOR LIQUIDITY to the screen - and that ladies and germs, is the big Catch-22. There are floor locals and brokers who will continue to hold the Boards of Directors hostage and let Eurex, ISE, Globex, and ACE take the rest of the business they haven't gotten already. Don't buy a seat. Don't let them off the hook. Besides, you'll just be buying it cheap, and selling it cheaper.

 

[metooxx]

Originally posted by PuffyGums
You can lease a seat at the Minneapolis Grain Exchange for $50/mo.

www.mgex.com

Why would anyone want a seat there?

 

[metooxx]

Originally posted by wcom_daytrader
is it possible to buy a seat at the cboe (+- 175.000$) and not to use it but just wait for a few years and maybe sell it if the price is higher. or do you have to actually use your seat.?

i wouldnt mind buying a seat at the cboe and just wait a couple of years.

anyone?

Are you crazy?

 

[PuffyGums]

Originally posted by metooxx


Why would anyone want a seat there?

If you want to trade grains you do. Don't buy a seat. Just lease one. A number of traders makes quite a nice living making a market in options on futures. Volume and open interest are breaking records.

The market closes at 1:30 so its a short day compared to an ES trader.

As an illiquid market it, provides opportunities for people who want to make a market on the floor.

The expenses for trading there are very low.

 

[metooxx]

Originally posted by PuffyGums

If you want to trade grains you do. Don't buy a seat. Just lease one. A number of traders makes quite a nice living making a market in options on futures. Volume and open interest are breaking records.

The market closes at 1:30 so its a short day compared to an ES trader.

As an illiquid market it, provides opportunities for people who want to make a market on the floor.

The expenses for trading there are very low.

And so are the opportunities ...

 

[qazmax]

Originally posted by PuffyGums
You can lease a seat at the Minneapolis Grain Exchange for $50/mo.

www.mgex.com

Can you trade electronically there? Or is it Open Out Cry?

 

[CalTrader]

Leasing costs are available on the major exchanges websites or by calling the membership departments at the CME CBOT CBOE.

The exchange world has changed quite a bit over the last few years. Competition is heating up, primarily due to the establishment of viable electronic markets. in particular the CME is under pressure and has had a tough time adapting. Consolidation in the exchange industry is probably not over and the larger exchanges will be the winners - but will not endur unmodified.

The prices of leases and seats fluctuate: The prices are usually a fair indicator of the opportunity. The MGE is a place where many start their trading careers: its a low cost entry with commensurate opportunities.

 

[freehouse]

Originally posted by PuffyGums

If you want to trade grains you do. Don't buy a seat. Just lease one. A number of traders makes quite a nice living making a market in options on futures. Volume and open interest are breaking records.

The market closes at 1:30 so its a short day compared to an ES trader.

As an illiquid market it, provides opportunities for people who want to make a market on the floor.

The expenses for trading there are very low.

Imagine if you couldn't trade remotely as a member and had to be in Minneapolis instead. That would suck especially in the wintertime.