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Under the terms of the plan, 50% of the revenues from the new trading platform will be allocated to an intermediary incentive pool. All intermediaries who are responsible for bringing a minimum of 10,000 contracts of business to the platform each month will be eligible to participate in the pool. At the end of each month, the qualifying intermediaries will receive a pro-rata share based on the volume for which they were responsible.
Exchange Chairman Vincent Viola said, "We are the first trading platform to recognize the ongoing and critical role of the voice brokers in the energy trading space. As an exchange, we have devised an innovative means to incentivize voice brokers, along with the traditional brokerage community, in the digital age."
The Exchange intends to file notification of this plan with the Commodity Futures Trading Commission today and begin the program on Monday.
The Exchange introduced the NYMEX ClearPortSM trading platform on January 16. The system currently offers trading in 34 futures contracts based on popular off-exchange petroleum, gas, and power instruments.
The fee structure for the platform already includes an innovative structure which rewards liquidity providers. Under the terms of the program, anyone making a bid or an offer that is subsequently accepted in natural gas receives $.25 per contract, while the participant on the other side of the trade will pay an all-inclusive fee of $.65 per contract. For the crude and petroleum products futures contracts, liquidity providers receive $1.00 per contract and the participant on the other side of the trade pays an all-inclusive fee of $2.50 per contract. For electricity futures, liquidity providers receive $1.00 per contract and the participant on the other side of the trade pays an all-inclusive fee of $3.50 per contract.
