The CBOT Board of Directors recently approved rule and regulation changes expanding eligibility for member firm registration and transaction fee treatment, allowing pools, hedge funds, mutual funds, pension funds, and investment companies, or similarly structured entities owned by passive investors, to receive significant cost savings on their transactions at the exchange.
CBOT Chairman Charles P. Carey said, " The Board of Director's action to expand eligibility for firms such as Fairfax to receive member firm fees exemplify the exchange's commitment to broader market participation and our focus on all profiles of trading. Further, Fairfax's actions are a clear indication that the support for our open and transparent market model is viewed as the preferred market model. We expect more customers to take advantage of this new passive investor category."
CBOT President Bernard W. Dan said, "Firms such as Fairfax recognized the value the CBOT brings to the industry through its transparent, liquid and integrated markets. We can now encourage our customers to further leverage the strength, innovation and transparency of the CBOT and do so with the most competitive transaction fees in the industry. This is a win-win situation for both sides."
Companies who become member firms under this rule can take advantage of the new pricing structure recently introduced at the CBOT for electronically traded fixed-income products. Effective on January 1, 2004, these firms will be charged transaction fees ranging from 20 - 30 cents.
For more information on eligibility requirements to new passive investor category, please visit www.cbot.com
