I once had a seat fall 100k right after I bought it - which was admittedly frustrating - but in general, outside of the fee differentials, they've been a good investment. Right now the CME full keeps pegging the offer and the NYMEX is hitting the bid. I suspect oil is washing some people out. CBOT seat activity doesn't seem to be too seasonal and I think a 280 bid is reasonable. Not sure if you will get hit. I've had some bids take over a year. Also, for some reason nobody seems interested in really negotiating these things. I've been BBO on several for a long time and I never get called. I've called the other side many times and only once negotiated a slight price improvement. My guess is that buying will work out well for you.
I would agree with Garachen, I think it would probably worth buying one. Put a $300,000 bid in. As long as the CME gives a favorable commission structure to seat owners, it should remain a good investment for you, considering the money you will save on your own commissions.
Thanks guys. I guess I will try to buy one in Q1. I am already in touch with CME.I will keep you up to date...
I was once a CME clerk on the floor and not a member so take this with a grain of salt. I did spent many hours standing next to dominant brokers and long lived pit traders. The high price tag of the Full membership is to give you an ear to the executing broker in the pits who regularly consults institutional participants and may give you an early "peek" at forth comming orders. Essentially, you spend your days paying lip service to the broker who will give you an edge. There is no better edge. For electronic based trading were you work with numerical data and price relationships, there might be better values with other memberships/products that seemingly convey the same information in price/volume. So if you get that jacket ( lucky you), by all means, stand in those pits!
http://www.advantagefutures.com/ser...n/cbot-membership/cbot-individual-membership/ PROCESS FOR CBOT INDIVIDUAL MEMBERSHIP: Each of the five types of individual CBOT memberships involve the same membership process. To apply for CBOT membership you must submit: A typewritten application for membership, which includes Answers to questions on education, employment, residential and disciplinary history; and Completion of a financial statement of assets, liabilities and net worth; A $2,000 non-refundable fee made payable to CME Group; Two 2″ x 2″ passport-quality color photographs; and A certified birth certificate or passport During the application process, CME Group will: List the name of each applicant in our Weekly Special Executive Report Post your photo on the CME Group trading floor If your membership application is approved, you have 30 days to acquire a membership. You can acquire a membership via: Purchase Gift Lease Family Firm transfer Primary Clearing Member Authorizations: If you plan to execute trades on the Exchange Floor or on the CME Globex electronic trading system, you must designate a primary clearing member that will accept and clear the trades. NFA Floor Broker/Trader Registration/Authorization of Error Accounts: You must file with the National Futures Association (NFA) either as a Floor Trader or Floor Broker if you intend to access the trading floor. If you will use your membership for the purpose of filling orders for other members or customers you must apply to the NFA for a floor broker’s license. Acquisitions: Purchase or Lease of a Membership – Following the approval of a membership application, you have 30 days to procure a membership privilege. You may submit a bid to purchase a membership at any time, i.e., before you submit your application for membership, while your application is being processed or after your application is approved. You may also submit a lease agreement or transfer forms once you are approved for membership. You may lease a membership by paying a monthly ‘rent’ to an owner of any division of membership. You can find a member to lease from through clearing firms or through a list of lessors posted in the Membership for Leasesection of the CME Group website Membership Pricing section. FORMS FOR CBOT INDIVIDUAL MEMBERSHIP: Click here for Application for Membership Click here for Additional Forms PRICING: Click here for CBOT Membership and Lease Pricing
If you can be "patient", seats can appear to make a "seasonal bottom" in March / April before the "expected" price advance and volatility advance of grains into Summer.