Qualified e-cbot® member firms, including European proprietary trading firms and trading arcades, now will have the ability to trade on CBOT's electronic platform, which features the most advanced technology in the world, without owning or leasing a seat until July 31, 2005. Exchange fees for e-cbot firms that take advantage of the permit program will be reduced by 50 percent, from 90 cents to 45 cents per side. Additionally, e-cbot permit program participants will have the opportunity to qualify for a temporary waiver of the CBOT's 15 cent per side delegate surcharge.
CBOT Chairman Charles P. Carey said, "The e-cbot permit program is evidence of the CBOT's aggressive approach to increasing the exchange's presence throughout Europe and the rest of the world. The CBOT, which is already a leading exchange globally, saw an explosion of volume in 2003 and set an all-time annual trading record. With the e-cbot permit program, even more European traders will have the opportunity to access the CBOT's cutting-edge technology and deep pool of liquidity through our transparent and open markets."
Scheduled to begin on February 1, 2004, the e-cbot permit program's key requirements include:
- Entity must have a clearing relationship with a CBOT clearing member.
- Applicants must register for the e-cbot program with the CBOT by March 31, 2004.
- Entities that act as brokers for third parties are not eligible for the permit program.
