Question about CME Membership

Ha. I’m both pleased and embarrassed. Pleased that someone accurately corrected me. It’s like the internet worked. Very good.

Embarrassed because l tend to forget about those income capped taxes..

So yeah. For <1M or so it’s a consideration. With enough trading the fees are such an issue that you have no choice on CME. On other exchanges I usually opportunistically declare because ‘membership’ gets very ambiguous.
 
garachen said:
On other exchanges I usually opportunistically declare because ‘membership’ gets very ambiguous.
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Just 10 years ago, the seat sold for over $1 Mil a pop. Man I feel sorry for those folks. Who knew it would come down so much. I just might as well wait a few more years. At the going rate, who knows, we might see it swoon under 10 grand (IOM).

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Some more detail on question 2.

If you lapse OR change seats (lease from a different seat owner on the same exchange) within 60 days there is a $300 fee. If you lapse for more than 60 days but within a year there is a $500 fee.

If your lessor sells the seat you are leasing and you lease a new seat the same day without technically lapsing, you still have to pay a $300 fee.

If you wait for more than a year you have to pay the full application fee again.

Source:
https://www.cmegroup.com/company/membership/files/shortform.pdf
 
Hi,

I am also currently inestigating a seat for ES trading. Still early stages because I am based in the UK and I still need to do my work on tax implications.

I am new to the whole topic and currently trying to undertand what would be required if I only trade ES futures? Full CME membership? What does IMO exactly stand for and what does it cover?

I am looking at this site for information: https://www.cmegroup.com/company/membership/individual/cme.html#pricing

Is there a database for past CME seat transactions to get a sense hot the prices evolved over the years? Still unsure if buying or leasing is better.
 
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rainbow47 said:
Hi,

I am also currently inestigating a seat for ES trading. Still early stages because I am based in the UK and I still need to do my work on tax implications.

I am new to the whole topic and currently trying to undertand what would be required if I only trade ES futures? Full CME membership? What does IMO exactly stand for and what does it cover?

I am looking at this site for information: https://www.cmegroup.com/company/membership/individual/cme.html#pricing

Is there a database for past CME seat transactions to get a sense hot the prices evolved over the years? Still unsure if buying or leasing is better.
More...

IOM is fine for ES and will cost you probably between $200-$300 a month for a lease, buying one will probably be around $25K currently.

Here you can see what IOM includes.

https://www.cmegroup.com/company/membership/individual/cme.html

Not sure if there is a list of past transactions however you can see recent sales/leases on the CME site.

Edit: i would probably go with leasing, easier process and you can lease many years for the price of a purchase.
 
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Have helped more than a few clients get CME memberships in different forms.
If you been trading for a while and trading volume of 2000+ eminis per month than it makes sense.
Be happy to assist if you like, feel free to PM me.
 
Thank you both. Really appreciate your help. I will look into the details.

Just one other question, is a IMO seat valid for lifetime if I buy it? And can it be resold any time again?
 
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