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The Chicago Board of Trade (CBOT®) today announced modifications to its trading fee schedule effective October 1, 2006. The revisions include a reduction in the trading volume requirements for certain members to receive volume discounts, an increase in fees for non-members who trade the CBOT Treasury complex, and a simplified fee schedule segmented by product and membership category.
In an effort to reward liquidity providers at the Exchange and facilitate their access to trading opportunities, certain membership types will become eligible for fee discounts when their monthly trading volume reaches 15,000 contracts, rather than the current standard of 100,000 contracts. After reaching the volume thresholds, eligible market participants will receive discounts retroactive to the first contract traded within the month.
The modifications to Non-Member CBOT Treasury complex fees include an increase in open auction futures from 30 cents to 40 cents. Treasury futures traded on e-cbot will change from 45 cents to 50 cents, and fees for e-cbot options trading will move from 50 cents to 75 cents.
In addition, the Exchange is organizing its fee schedules by product among five membership groups: Individual Member, Equity Member Firm, Trading Member Firm, e-cbot Member Firm and Non-Member. In a move designed to better meet the needs of CBOT customers, this reorganization better aligns fees with the Exchange’s membership and product structure.
Fee Change Rate Per Contract Guidance
These fee adjustments will impact CBOT average rate per contract in the 2006 fourth quarter as follows:
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$0.564 |
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5% to 8% |
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3% to 5% |
This rate per contract estimate assumes that the future volume transaction mix is similar to the mix experienced year-to-date though July 31, 2006. Average rate per contract represents total exchange and clearing fee revenue divided by total trading volume.
For additional information on the revised CBOT fee schedule, please visit the Exchange’s website at www.cbot.com/exchangefees.
