Release: 4844-03 For Release: September 26, 2003 COMMENT PERIOD FOR U.S. FUTURES EXCHANGE (EUREX US) CONTRACT MARKET APPLICATION EXTENDED The period for submitting comments on the U.S. Futures Exchangeâs (Eurex US) contract market designation application has been extended by Commission staff until October 16, 2003. Eurex US submitted its application to the Commission on September 16, 2003. On that same date, the application was posted on the Commissionâs website with notice of a 15-day comment period ending October 1, 2003. Subsequently, interested parties have requested that the comment period be extended. In order to ensure that all parties have a reasonable opportunity to review and comment on the Eurex US application and that the Commission has adequate time to consider comments and to complete its review within the 60-day fast-track review procedures, the comment period has been extended by an additional 15 days until October 16, 2003, providing for a 30-day comment period. Comments on the Eurex US application may be submitted electronically at submissions@cftc.gov. All comments will be promptly posted on the Commissionâs website (http://www.cftc.gov/dea/deasubmissioncomments.htm).
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In the release, they say: ------------------------------ At the same time Eurex US will offer trading at cost levels far below those currently paid in the U.S. market. The vast majority of trades will be priced at 20 cents per contract or less depending on participation in incentive schemes." It added that the execution of an individual trade, irrespective of volume, would cost no more than $0.30 per contract. -------------------------------- * Who is getting the price 20-30 cents/contract, is that us, the traders, or the broker? * And if it's the broker, what's their price today, and what price could we traders expect to get?
Well, they just want to tell traders that their exchange fee will be around $0.30 vs. CME´s "exchange fee" (aka rip-off) of about $1.14.
Yes, the fee schedule is very favourable for Eurex. However, the A/C/E system is PURE BULLS**T! It is still based on 64kbit connections, not all trades are transmitted to market data vendors (see my other Eurex Thread) . Generally it has no chance when it comes to a technical comparison with LIFFE connect, which is CBoT's new choice. I hate Eurex (A/C/E) for it's system.
Do I get this right FX-Trader? Today the exchange charges about $1.14, charges that the broker pays, who in his turn charges traders about $5, leaving the broker with about $4 for costs and profit. If the exchange's price would come down to $0.30, that would make it $0.84 cheaper for the broker, who in his turn could lower the price for traders with about the same amount. A good guess could be down to about $4, ie 20% lower commission. Not a huge difference in that case...
No, it´s more like (all halfturn): $0.50 goes to broker $1.14 goes to CME $0.02 goess to NFA ------------------------- $1.66 total cost (E-Mini futures/halfturn) $0.50 goes to broker $0.30 goes to Eurex $0.02 goess to NFA ------------------------- $0.82 total cost (E-Mini futures/halfturn)
If A/C/E is going to disappear, how would contracts like ZN(10-year Note) be traded? Will CBOT get its own electronic exchange? It is confusing if the same contract is traded on two exchanges.