CME Membership - CTAs

Discussion in 'Professional Trading' started by heech, May 3, 2012.

  1. heech

    heech

    Hi guys,

    Reading through the CME's membership section on their website gives me a headache. I thought I'd just lean on the combined expertise of everyone here...

    How are clearing fees handled, for CTA-traded accounts? If I was a member, would my clients get discounts on trades as well?
     
  2. No reason to ask unless you have $300 million under management.
     
  3. heech

    heech

    Uh, the numbers are dependent on trading volume, not AUM. And membership was already almost making sense for my pool a year ago. I've gained 50% in the pool in AUM since and am onboarding my first SMAs. If membership applies to my client accounts, then the numbers REALLY work.
     
  4. Maybe a CME seat would be dependent on volume. The floor brokers and IB's in the pit though usually have this much ammo.

    I'd trust my broker with a direct line before paying too much for a seat. It's only going to benefit you if you have any intention of ever being on the floor to trade size electronic markets simply can't handle without excessive slippage.
     
  5. rmorse

    rmorse ET Sponsor

    http://www.cmegroup.com/company/membership/membership-pricing.html#pricingType=1

    You can lease a membership for around $2k per month. I believe the membership benefits apply to that entity. So, if your an LP with all your clients in one account, the entity will get the discount. If your a CTA with SMA, each account is owned by the investor, so they are not members. I believe they pay full rate.
     
  6. heech

    heech

    Funds don't get off that easily. They have special categories for those managing other people's money, usually requiring equity ownership. A LP trading prop funds have it easiest.

    I'm not convinced about the CTA w/ SMA... I'm hoping that isn't the case. i'll follow up to this thread after I find out for certain.
     
  7. hitnrun

    hitnrun

    heech

    I believe you could get a cme 106 R ecm membership ?
     
  8. theshrink

    theshrink

    CTA clients do not get member rates.
     
  9. rmorse

    rmorse ET Sponsor

    Unless they are members.
     
  10. theshrink

    theshrink

    Good point, I had overlooked that even though it actually happened to me once when I was a CTA..... Not too common unless you know a lot of locals, though.
     
    #10     May 7, 2012