Well, that's assuming someone doing 1000 lot trades is paying the retail price. Everything is negotiable, of course. I know a couple of traders doing that sort of size, and they have huge negotiating power and get all sorts of special treatment.
If you are trading 250 contracts, that is already at least half a million just to cover the cost of margin, not to mention the excess funds you would need to maintain risk-management and money-management. At that level, you are no longer a regular "trader" but probably a well-known name among a circle of elite traders. (Not to mention taking home somewhere around the low 8 digits) aphie
If it wasn't for the rights to trade Globex, an IOM would be selling for 1/3 it's present value. Ain't nobody paying 300k to trade in the pit as it slowly dries up.
Pabst, Could globex or an exchange like globex just open up to unlimited membership and do away with brokers altogether?
Theoretically yes but many caveats are involved. In the case of ES, Standard and Poors, obviously "owns' the rights. The CME pays big for the listing. That's one reason why exchange fees for retail ES are so large. Rumor has it that the CBOT paid Dow jones at least 25 mill for the rights on DIA futures for 5 years. Just now is the exchange getting some of its investment back. Another thing established exchanges have is the credit worthiness of their clearing houses. Large institutions may have problems justifying having 50 mil parked in Joe Blow Futures Exchange. Over the years many have tried, none have succeeded. Also food for thought, Enron was really just a glorified energy derivatives exchange.
This is a very true statement and basically the trader calls the shots at this level. Also, you would be amazed at the amount of traders there are out thier trading the maximum amount allowed on the minis that are fairly low key and unheard of. I have found a few. They all get whatever it is that they may need to make there trading enviroment easier. "Soft Dollar" expense. comp
I would think that if it was requested it can be accomplished, as long as it is legal. Mainly you will find requests toward IT related needs, equipment, connectivity etc.. The majority of the traders that trade size tend to be frugal, not all but I have found that most are and the requests that are made seemed to be geared toward making thier trading environment better. comp