direct participation or via broker

Discussion in 'Index Futures' started by dabruha, Oct 1, 2009.

  1. dabruha


    Sorry for the newbie question, but I am researching the pros/cons about becoming a direct participant (probably non-clearing member) of the exchange versus just going through a broker. Is there any aspect I should focus on?
  2. 1) Average Costs
    2) Administration
  3. 4xxxx


    I would be happy to discuss some of the benefits of a direct Eurex NCM ( Non Clearing Membership) with you.

    Increased personal rapport with the exchange ( as opposed to anonymous Agency=customer business) is obviously one selling point. However, your volume should warrant a membership so if you are not trading at least 6000 Dax, or 10,000 EuroStoxx, or 15, 000 Fixed Income per month then it would probably not make sense sinc you would have to at least meet those monthly volume levels to cover Eurex's MTF's ( Minimum Transaction Fees) after the first 1.25 years after your membership.

    We do have some incentive programs meant to encourage direct membership which would amount to EUR 3,000/month in free transaction fees for 12 months afer you are admitted as a new member. ( This would mean 6000 free DAX / month or 10,000 free EuroStoxx/month, or 15,000 free Fixed Income / month.

    I assume you are only P=Prop business? There are also additional fee discounts availalbe to direct members who meet certain monthly thresholds that can bring your monthly transaction costs down by 10%, 20% and 30% but these are pretty lofty volume thresholds.

    Email me or contact me if you are interested in hearing more.


    Tim Levandoski