No complaints about the new EUREX fees ?

[Risk Less]

qdz2,

Market Makers get lower execution fees if they answer a majority of the RFQs on a consistent basis. Most firms have an autoquoter that submits a two sided quote around Theoretical value in the Options. iRFQs aren't really necessary in the liquid futures markets.

Some Option Market Makers use an AutoQuoter that actually gives a two sided quote to options at a series of strikes. As the underlying price changes the Quotes are pulled and re-enterd using new theoretical values. This creates a drag on the system, but it also populates the options screens with quotes. The exchange worked to limit this type of thing because it impacts stability. This what Def is referring to when he mentions Market Maker fees.

The New fees have been implemented to address the great number of transactions sent by Automatic Trading Systems in the FUTURES. Their use is growing at a tremendous rate and the matching engine at Eurex is being put to the test.

My mix of traders have not forced me to charge my clients for pulled orders, but I would bet that the firms that do charge have a great deal of ATS trades going through them.

Riskless

Quote from qdz2:

1. what's cost ratio of this particular fee for the market makers?
2. do we get the advantages for market maker by paying this fee?

Thanks for enlightening us.

 

[def]

Quote from riskless:

I am not just talking about Market Maker fees, because the fee structure has always been aimed at Automated Trading systems. These fees are designed for the retail ATS user. He even mentioned TT Spreader in the conversation!

I think we are now on the same page. In your first post, you mentioned "These fees are aimed at firms like IB's parent Timberhill, Hull Trading, Archelon and others." and above you mention correctly that they are aimed at retail (or any automated traders)

 

[qdz2]

Thanks riskless for the info. Seems we were not talking about the fee for order modification or cancellation. Anyway, just leave me alone and let me keep listening. Thanks.

 

[corvus]

Quote from corvus:

I had been looking at trading Eurex in Jan...actually made some orders but no cancellations, though typically I have a few during the day. I didn't realize that they had these fees. That sucks.

HEY EUREX...THESE FEES MAKE YOUR PRODUCT EXTREMELY UNATTRACTIVE TO TRADE. THAT MEANS NO COMMISSIONS FOR YOU BOZOS.

Lord knows they are reading this...ha.

lol...you know, reading through this thread, my post is sort of laughable.

 

[Risk Less]

Each of those firms have their own Automated Trading Systems. The fees are still aimed at them. A retail ATS could not create a model that inputs and pulls trades as fast as Archelon's, Timberhill's or Hull's. Because of the amount of activity that these firms put through, Eurex is forced to implement limits on the number of orders. So basically we are on the same page, but Eurex is aiming these fees at firms with ATS as well.

The fee structure is available: www.eurexchange.com/marketplace/products_funct_overview_2_en.html


Riskless

Quote from def:



I think we are now on the same page. In your first post, you mentioned "These fees are aimed at firms like IB's parent Timberhill, Hull Trading, Archelon and others." and above you mention correctly that they are aimed at retail (or any automated traders)

 

[Cutten]

Why not switch to a broker who doesn't make this charge?

The fees are only charged by Eurex on a firm-wide basis i.e. if you personally sumbit 10 orders per executed trade, and 2 other traders submit 2 orders per executed trade, then as a group you have done 14:3 - as this is less than the 5:1 ratio, Eurex will not charge that group a penny. If the firm still charges the 10 order trader some fees in this case, then they are doing it purely to make a profit. The only firms that should charge it are those whose customers, as a group, on average do more than the 5:1 ratio.

Most firms do not have sufficient numbers of hyperactive traders as customers to incur these Eurex fees. Just ask around and you'll find brokers who don't pass on the charges.

 

[harrytrader]

I'm your Prophet . Now don't kill me like in Ancient Greece just because I am the messenger of bad news

http://www.elitetrader.com/vb/showthread.php?s=&postid=208149#post208149

"harrytrader
Elite Member

Registered: Aug 2002
Posts: 2002


02-22-03 10:30 PM

Higher fees, higher account, higher margin call, higher speed, higher taxes : prepare for that or you will be washed out"

Quote from qdz2:

I did.

The same crap on direct options orders. Before the next year comes, this will apply to any type of orders on any security. And we all can say quit and kiss goodbye.



Pay me extra fee since you put down that bag of bread and took this one in my store. Well, I don't care if you are shopping here any more. But I will give you a rebate for one bag of bread you picked for each bag you buy.

Okay, thank you for your f8cking rebate. I just choose not shopping here any more. And who cares if consumer protection group sue sh8t of you!