CBOT Chairman Nickolas J. Neubauer said, "These temporary changes are being made within the objectives of our pricing strategy. We wanted to make our pricing structure more customer-focused and create benefits for large market users. We wanted to maintain and strengthen membership preference by increasing the demand for seats. These changes are consistent with our strategy to encourage market liquidity and efficiency. We believe these objectives are being achieved, as the intrinsic value of the Chicago Board of Trade is growing. As a result the Board felt that these temporary changes to the pricing strategy were in order."
The CBOT pricing structure has been revised as indicated below:
- Effective May 1, 2002, change the fee for open auction non-member financial futures product transactions to $0.30 per contract/per side for all volume levels. This reduces the established rates of $0.50 for monthly volume under 50,000 contracts and $0.40 for monthly volume of 50,000 to 150,000 contracts.
- Effective June 1, 2002, waive the $0.20 per contract charge for individual and institutional members trading Dow Jones stock index products in the open auction or on the CBOT's electronic trading system.
- Effective October 1, 2002, waive the $200 per month fee for IDEM badge holders who execute trades in Dow Jones stock index products.
- For the 3rd and 4th quarters of 2002, waive the Floor technology/Floor Efficiency Service charges for all membership categories. On a monthly basis, these charges are $167 for Full Members, $100 for Associate Members and GIMs, and $67 for IDEMs and COMs.
