Actually I was thinking more about the greatly diminished arb opportunities in the Treasury complex at the CBOT than ES-SP arbing at the CME. Clearly Gobex vs. the pit is alive and well, although there has been a drop off in the pit population in the S&P's.
I already found these before I posted. I was actually wondering what kind of fees there are in addition to the cost of the seat lease? Aren't there monthly membership fees Also, what are the fees/rates for the clearing firm? Does anyone here lease a seat and trade electronically? I'd really like to PM some ET members who lease and trade electronically. Thanks in advance.
I was actually wondering what kind of fees there are in addition to the cost of the seat lease? Aren't there monthly membership fees? Also, what are the fees/rates for the clearing firm? Is there a fee to use a/c/e? Thanks very much.
I've gotten a couple of PM's from other Elite Trader members and wanted to post this back to the top. I know that is costs around 1200/month to lease a CBOT seat. Would leasing this seat allow me to trade on ACE and get member rates? What sort of clearing fees will I expect to get for trading electronically? Are there any other capital requirements to lease a seat? Anything else I should know? Finally, how much quicker are executions on ACE than say IB? Thanks in advance
FutureTrade, If you lease a seat you will get Lessee rates and they are substantially lower than non-member customer rates: $.45 versus $1.35 per lot. If you go through IB you are trading on ACE. During the membership and lease setup process, you will need to notify your clearing firm or broker and they need to set you up as a Lessee. The Exchnage must know who you clear through prior to your being granted the lease. Therefore, you will automatically be charged a lower exchange fee. In order to lease a seat you will need to go through the Membership process at the CBOT. This will include detailed Financial History and Employment information. You will be interviewed and be subject to a thorough Background check. Last question: ACE is the exchange matching system. You can compare the ACE Gui to TWS, TT or FFasttrade and I can tell you that it is not faster. If you have any more questions, PM me and I will get back asap. You need to do the math and see if it is worth a seat lease. The last AM lease that I saw was under $1,000 per month. If you trade over 1100 contracts a month it pays for itself. Good Luck! Risk Less
floor vs. screen If you had the choice of trading on the floor vs. screen based, which would you pick? Is being on the floor in an open outcry environment far better edge wise than the "sterile" environment of the screen? I am debating whether the floor edge is worth it-pain is the ass to apply 1.)$1,000 per month lease 2)NFA paperwork, 3)floor broker application costs of $1700. Any thoughts as to why it would be worth all that trouble and expense? Thanks
floor vs. screen If you had the choice of trading on the floor vs. screen based, which would you pick? Is being on the floor in an open outcry environment far better edge wise than the "sterile" environment of the screen? I am debating whether the floor edge is worth it-pain is the ass to apply 1.)$1,000 per month lease 2)NFA paperwork, 3)floor broker application costs of $1700. Any thoughts as to why it would be worth all that trouble and expense? Thanks
The edge on the floor is gone for Futures. Most of the paper is on the screen. In the ES and NQ the floor guys are getting run over by the screens. The Options are a different story! You need to be in the Pit due to costs and flows, but the Pits are extremely competitive for the flows. In order to Market Make in the 10-Year or the S&P Options you better have some time to prove yourself and get some recognition from Brokers. A veteran floor trader will find it difficult to move into a new pit and get the trades that he wants. In addition, the markets are tight and traders need to inventory substantial positions to make a go of it. Capiatal is essential because you will need to take some swings. Risk Less