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Old Aug 20th, 2010, 12:40 PM   #1
nicbizz
 
 
Join Date: Feb 2010
Posts: 91
Hey all,
I trade fairly heavily in the ES through IB, and paying $3.20 - $3.60/rt is starting to cut deep. So I was thinking an leasing a seat might be the way to go.

I checked the CME website but couldnt find anything on membership (maybe I'm looking at the wrong page). Would anybody with experience or knowlegde about this kindly help on the following q:

1) Whats the difference between CME, IMM, IOM, GEM seats? My volume is mainly on the ES, and GME appears to have the lowest leasing cost. Would that work for me?

2) How is the application process like? I don't reside in the U.S. - hopefully this is not a problem.

3) Once I manage to lease a seat, do I have to go through speaciaized brokers, or can I continue to trade with IB?

4) Speaking of IB, do they offer decent rates for futures trading?

Thanks in advance
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Old Aug 20th, 2010, 12:50 PM   #2
taclander
 
 
Join Date: Dec 2004
Posts: 920
http://www.cmegroup.com/company/membership/index.html

On the home page for the CME it was on the middle right side of the page. In my opinion you might be better off finding another broker if you are doing the kind of volume to make a lease worthwhile. Not sure if it is ok to post other non sponsor brokers, so I won't. Other brokers will help you through the process and offer very good rates, easily comparable to IB's posted rates.
Under Resources at the top of the CME home page is a link for Find A Broker. You can start calling that list and looking up issues at the nfa.futures.org.
Good luck
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Old Aug 20th, 2010, 01:16 PM   #3
cstfx
 
 
Join Date: Mar 2007
Posts: 3,998
Use the ECM membership as it is more cost effective and the due dilligence on the part of the exchange is not as "probing" since you are not really a member. To lease a seat (or purchase) you would need to go thru the whole review process and be sponsored.

http://www.interactivebrokers.com/en...=f&p2=futures6

On the above link, IB has a link to the application. ECM is cheaper than membership, but the exchange fees are a little higher than if you were a member. The only requirement is that you avg 50 rt a day in volume to get the discount. Once you have this ECM, you are not tied to IB, you could use it for other brokers as well and I believe pool the daily volume requirement. Aslo, if you look at the unbundled breakdown on IB's commission schedules, for the ES, which you trade, the exchange fee is the same whether you lease a seat for a few k a month, buy a seat for, what 7 figures?, or use ECM plan.

But understand, the ECM is for trading your own proprietary funds, not anyone else's.

http://www.cmegroup.com/company/memb...iles/ECMQA.pdf
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Old Aug 20th, 2010, 03:21 PM   #4
ScoobyStoo
 
 
Join Date: Mar 2009
Posts: 280
Sadly the ECM-W scheme you are refering to comes to an end in Dec 2010. Only the ECM-H scheme will continue into 2011.
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Old Aug 20th, 2010, 05:13 PM   #5
cstfx
 
 
Join Date: Mar 2007
Posts: 3,998
Quote:
Quote from ScoobyStoo:

Sadly the ECM-W scheme you are refering to comes to an end in Dec 2010. Only the ECM-H scheme will continue into 2011.
It was supposed to come to an end in 2008 also.

Depending on where we are at by Dec 31, may be extended again, but once you get it, you got it.
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Old Aug 20th, 2010, 05:55 PM   #6
pcp198
 
 
Join Date: May 2010
Posts: 146
Quote:
Quote from nicbizz:

Hey all,
I trade fairly heavily in the ES through IB, and paying $3.20 - $3.60/rt is starting to cut deep.
thats not a bad rate, I'm currently paying $5.5 RT.
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