Looks like IB isn't going to charge less to trade this contract. CME fee maybe 1/10th but IB's commissions certainly aren't going to be 1/10th. I hope IB charges proportionately less in terms of commissions and margin. The symbols are: M6E - Euro M6C - Canadian Dollar M6J - JPY M6S - Swiss Francs M6A - Australian Dollar
If I were the CME. I would offer some kind of kickback commission/fee structure to the brokers to get them down to like 50 cents a contract or even something lower. They are going to be able to run a tight market on these. They have a great team of forex futures market makers already in place with all the systems etc. They have had them in place for a number of years now. They could easily put the forex bucket shops out of business. Easily. All they need is for futures brokerages to be able drop rates on commissions. The only thing the bucket shops have on the futures brokers is the ability to use a credit card at account opening! Of course, most forex traders do not realize at first that the spread they pay IS a commission. If these are successful, the CME will probably roll out several ready made spread contracts like EUR/JPY etc.
The arbs and spreaders gotta get involved and I'm sure they will. I've got teh 6e / m6e setup in autospreader but haven't placed a trade yet