Exchange fees, Do we have to pay more then once for them????

Discussion in 'Order Execution' started by mahram, Jul 5, 2005.

  1. hi I was wondering if somebody can answer this, I subscribe to esignal,realtick, and Ib quotes. I asked the esignal person, If I already payed for exhange fees on realtick, if I have to pay again at esignal? I read and been told no you dont, its a one time only fee if you already payed, some say yes, what do you guys think
  2. mnx


    i've always wondered about this too. actually i was talking about this same subject thios morning. While I don't know the official rules, I think it's total BS that you should have to pay exchange fees more than once...

    my .002$

  3. Ebo


    You only have to pay one vendor.
    Which Vendor is charging you the second time?
    Send them a copy of the first fees paid to the primary vendor.

    This has been discussed to death on another thread.
  4. Someone in the know please address this question (DTN, eSignal). Does an exchange basically grant a site license to a broker, IB for example, and then IB would simply report how many users (all of them anonymous to the exchange) are accessing data on a monthly basis and pay the exchange accordingly? Or does the exchange know each individual's name, etc. For example, if I'm already paying through IB for Eurex trading access and real-time market data, why should I again pay the Eurex exchange fee through DTN for a real-time feed (not including DTN's fee as a real-time provider of course).

    Last month I trialed mcurto's squawk box service, which streams a real-time webcast of action in the CBOT pits for the 10-year t-note and 30-year bond (it didn't significantly benefit my particular trading method, but it's a great service). In order to receive the stream, I had to provide my DTN account number so the squawk box service could verify that I was already paying for CBOT real-time data (I guess to CBOT, mcurto's service is real-time data for which it's due a fee). This is exactly the case of the exchange being satisfied without the need for duplicate exchange fees paid by a specific user.

    I understand that the data providers--DTN, eSignal, etc.--might see the tracking of exchange fees which they are not physically collecting as an undue burden. However, the other side of the coin is that some traders like to maintain multiple data providers (since they all crap out at one time or another), and only paying exchange fees once would provide an incentive to keep multiple data vendors on a regular basis. Unless they're getting a kickback from the exchange for each exchange fee collected (which I don't believe), the data vendors should be collecting the same amount of revenue regardless of whether they physically collect the exchange fees or not. The additional revenue from the expanded subscription base (i.e., where more traders are maintaining multiple vendor subscriptions) could potentially offset or exceed the actual cost of administering the exchange fee validation process.

    I think many of us here would really appreciate feedback from both brokers and data providers on this matter. Thank you.

  5. CBOT404


    It's not the vendors who control the fees it's the exchanges. 2nd biggest source of revenue for them. And the exchanges don't care if you have bloomberg, cqg, dtn, ect. You pay for their data on each system.
  6. yeah but I read on the site you only have to pay once for the exhange fee and thats what alot of traders have said.

  7. CBOT404


    once per vendor for futures, not sure about equities.
  8. Also on the esignal website, if you sign up for esignal wireless quotes, you dont have to pay exchange fees twice because you already paid for them, so Im really confused, do you have to pay twice or not if you already paid them with another provider.

  9. CBOT404


    They say you only pay once, but you can not have access to real time data simultaneously. So you can be on your wirless but not on your PC at the same time to receive live quotes.
  10. alanm


    The last time I investigated this was December, 2001. I asked the NYSE, CME, and CBOT directly. All confirmed that the fee is charged for each "display device". That means you pay fees for each platform.

    Note that I also specifically asked the NYSE about OpenBook, since you used to pay them directly for it, instead of through your market data vendor, and it would be practical for them to allow it in multiple places, unlike the situation where one vendor would have to verify that you paid another vendor every month. They confirmed that the reason for the policy was specifically that they intended to charge for each display device, not just the practical issues of verifying each user paid at least once.

    Please, if anyone has actual experience paying one exchange fee for multiple platforms, or confirmation from an exchange that they are not required to do so, post the details. I'd love to avoid paying 3 sets of fees if I don't have to.
    #10     Jul 5, 2005