CBOT to Reduce Transaction Fees for U.S. Treasury Products

CBOT® to Reduce Transaction Fees for U.S. Treasury Products Effective February 1, 2004

CHICAGO, February 3, 2004 — The Chicago Board of Trade (CBOT) announced today that effective February 1, 2004, the exchange will reduce exchange transaction fees for all customers electronically trading CBOT U.S. Treasury futures and options on futures products. Further, certain exchange transaction fees will be waived in their entirety.

President and CEO Bernard W. Dan said, “This latest initiative is one of the many elements of the CBOT’s action-oriented approach to providing customers with a superior environment for trading U.S. Treasury derivatives products. Along with the advanced functionality of the CBOT’s premier electronic trading platform, an innovative clearing solution that is saving market users more than $1.7 billion, and highly liquid and transparent markets, the exchange is meeting the needs of customers with the most competitive pricing in the world.”

These fees will be in place for electronically traded CBOT U.S. Treasury futures and options contracts and newly announced German debt contracts for a minimum of six months, after which time the CBOT Board of Directors will review the reduced fees. The price reductions also will apply to e-cbot® members and market users participating in the CBOT’s European permit program. Highlights of the new transaction fees include:

o Exchange transaction fees for members trading for a member-owned account on an individual or firm-owned seat will be waived. (Previously, those users paid $0.10 per side for the first 25,000 contracts traded and $0.05 thereafter.)

o Non-members trading for an individual member’s or member-firm’s proprietary account will pay a flat exchange transaction fee of $0.06 per side, an average reduction of approximately 75 percent. (Previously, those users paid $0.30 for the first 100,000 contracts traded and $0.20 cents thereafter.)

o Non-members will pay flat exchange transaction fees of $0.30 for futures transactions and $0.50 for options, an average reduction of approximately 65 percent. (Previously, those users paid $0.90 for the first 100,000 contracts traded and $0.75 thereafter.)

For more information on CBOT’s reduced fee transaction schedule, see our Exchange Transaction page at www.cbot.com

 

Looks like us nonmembers will now only pay $.30 exchange fee instead of the previous $.90.

Not bad!

 

Will this bring seat prices down?

 

yahoo!!!!

 

o Exchange transaction fees for members trading for a member-owned account on an individual or firm-owned seat will be waived. (Previously, those users paid $0.10 per side for the first 25,000 contracts traded and $0.05 thereafter.

Dunnu, IMO this should bring prices UP !

 

It's a wonder what a little competition will do. These guys sit on their fat asses until EUREX US comes to town then all of sudden they find that they can drop rates. Whaddya know!

Better late than never I suppose.

 

What about CME??

 

Bone ?

 

they have lowered prices to exactly what they were charging members to trade electronically. i have consequently dropped my lease. clearing house fees the next to be cut?

 

Too greedy to lower their fees.