CME's Globex Terminal

Discussion in 'Retail Brokers' started by dozu888, Dec 8, 2001.

  1. dozu888


    I browsed through CME's page, and also had some phone conversation with their staff.... it appears that one can lease a Globex terminal for a monthly fee.. see the link below

    The clearing fee is listed here

    So far so good.... but you will need to find a clearing firm, which is listed here

    Before I even attempt to go further, I am wondering if anybody has any experience in trading the Globex products using this kind of set up.

    Performance, reliability, fees.... any input is appreciated.
  2. I thought you had to be a CME member to lease a globex terminal. Anyway, why would you go to all that expense when you can get it for next to nothing fronm IB?
  3. dozu888

    I'm wondering what would prompt you to take this route. Is it reliability, transaction costs, managing multiple accounts or what? This seems to be an awful lot of trouble to go through if you're just trading an account or two but I admit that I'm not familiar with the advantages of a globex terminal.

    Unless the terminal would provided significant advantages I would guess that a -good- discount online broker with a good software platform, redundant hardware, redundant globex connections, multiple commodity and market choices, as well as responsive telephone service with no penalty for occasionally placing orders by phone would serve most traders as well or better than going the other route.

    The cost difference could cover redundant PC's, internet connections and nice monitors on your end.
  4. booger


    Anyone seen the Globex book next to the web java book (which is five rows deep)? I'd like to know how they compare...this is the main advantage here for the small spec, imo---knowledge of resting orders.

  5. I see. I'm wondering if this is more of an advantage in commodities and slower markets than index futures. Program trades kick in and take out bids or offers so quickly I think it would be more of a distraction for me than anything.

    BTW, love that nickname!
  6. booger


    y, the eminis are incredibly fast----however----I watch the CBOT books (via IB) for 30-10-5y Treasurys all day--yes, there is very little predictability inherently within the resting orders, but every so often one gets a peek at levels of S/R, just before data, during freefalls, and while trending, one might see 500 to buy cumulatively over 2 lines with only 50 to sell on 5 lines-I'll typically wager 2 tics to make 4 in a setup like that. geez, would love to watch a GLOBEX mach sometime...


    ps, y, the nick is slowly becoming "taken" on new reg's. any suggestions for an alternative? *cringe*
  7. The main reason one would get a Globex Terminal is per trade cost. That means you are doing beaucoup volume. Last I checked, you need to do at least 100 round turns a day to make having a Globex Terminal worthwhile.

    That's the only advantage I see. I suppose you will see the quotes a hair earlier than through an online broker but you do not see anymore of the book depth. They've changed this earlier this year so that even if you have the Globex Terminal, you only see the book upto 5 levels deep.
  8. I'd think anyone doing that kind of volume would be able to negotiate a nice rate with a broker.
  9. True, but getting a Globex Terminal means cutting out the middle man (i.e. the broker) and dealing directly with the clearing FCM.