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ELX Futures, L.P. (ELX Futures), a new fully electronic futures exchange launching Friday, July 10, announced today that it will not charge for trades in the month of July, with billing to begin August 3.
Neal Wolkoff, Chief Executive Officer of ELX Futures, said, “Given our July 10th start date, we wanted to kick off our launch and show appreciation to our new customers by providing free trades for the month of July. We are confident that market participants will see a noticeable difference in our technology, fee structure and customer service, and will welcome ELX Futures as an innovative alternative in the futures market.”
Billing for customers will begin in August with a simple fee schedule for customers. ELX Futures will have a $0.09/contract bundled fee (clearing and exchange fees) for users with Average Daily Volume (ADV) above 400 contract sides. For low volume users at or below 400 contract sides of ADV, the bundled fee is $0.24/contract. The new fee schedule will represent a large reduction in costs for most market participants.
Other aspects of the ELX Futures fee schedule are: (1) to benefit from these fees there are no shareholding or membership requirements; (2) operational simplicity of only two fee tiers; (3) no fee surcharge for block trades, EFP’s, give-ups or trade busts; (4) once a trader reaches the higher ADV threshold during a monthly billing period then all the trades during that month qualify for the lower rate retroactively; and (5) ELX Futures will keep this fee structure in place for a minimum of one year from the time of launch.
The initial suite of products will offer trading in U.S. Treasury futures contracts, with the intention of moving into other major asset classes.
