No complaints about the new EUREX fees ?

Discussion in 'Index Futures' started by x-or, Feb 21, 2003.

  1. x-or


    I know that I already talked about this but I'm a bit surprised that nobody ever complained about the new fees that Eurex implemented on 1 dec 2002.

    As a reminder :
    EUREX will consider any order submission, modification, or cancellation as a system transaction. Fees will be levied on users who create excessive system transactions relative to the number of executed orders, in excess of the ratio 5:1.

    IB is forced to pass on these charges to customers. Accordingly, all order submissions, modifications, and cancels will be charged 0.50€ per order. Executed orders will generate a 2.50€ credit against other system transactions in the same product on the same day.

    How do you deal with that ? Did that change your way of trading or placing orders ?

    Personnaly, I don't like it because :
    - To enter, I place a limit order that I adjust with market's moves. The worst case is this one :
    If I move my order n times and finally decide to cancel it, I'm charged 0.5 + n*0.5 + 0.5 € ! (a bit expensive for not having entered the market !)
    Now, unconsciously when I moved my order a lot and I'm still not in, I tend to chase the market only to be executed and avoid this fee...

    - When I'm executed, I send a protective stop order that I trail. Naturally, i move it a few times. If I cancel it (case of a winning trade), once again I'm charged.
    To avoid this I try to move my stop directly to b/e and then 1 or 2 times only before exiting.

    Generally, I don't pay much of this fee because the charging/crediting is calculated on the same day and what I described above doesn't happen everytime.
    But for sure, they have changed my way of trading because now I can't trade naturally anymore.
    When you have to think of something else than executing your plan, that's not good.

    I'm really more relaxed when I trade the ES.
  2. qdz2


    I did.

    The same crap on direct options orders. Before the next year comes, this will apply to any type of orders on any security. And we all can say quit and kiss goodbye.


    Pay me extra fee since you put down that bag of bread and took this one in my store. Well, I don't care if you are shopping here any more. But I will give you a rebate for one bag of bread you picked for each bag you buy.

    Okay, thank you for your f8cking rebate. I just choose not shopping here any more. And who cares if consumer protection group sue sh8t of you!
  3. corvus


    I had been looking at trading Eurex in Jan...actually made some orders but no cancellations, though typically I have a few during the day. I didn't realize that they had these fees. That sucks. :mad:


    Lord knows they are reading this...ha.
  4. sammybea


    Well.. that just bodes well for the CME and their Emini product.. Why complain why i know the exchange i use get more business (liquidity) due to the Eurex :)
  5. Swipe


    the problem with eurex is they don't want the daytraders coming over there and making their market a free for all like the us futures has become. they are only interested in the institutions trading in their market

    they are trying to impliment a restriction so only licensed traders can trade there
  6. corvus


    Thanks for the update swipe...any link to info on the licensing?
  7. sammybea


    I have never understood that argument. Why would they not want the retail daytrader to trade the markets there? That just offers more liquidity for the so-called pros. :confused:
  8. Talk to some of the Eurex Marketing people and their strategy for the next few years is to compete with the US exchnages on all fronts: Retail and Institutional. They charge these fees because Eurex is overrun with Automatic trading systems. Autoquoting in both the Options and Futures creates a tremendous burden on their matching engine. This has forced them to implement these changes. These fees are aimed at firms like IB's parent Timberhill, Hull Trading, Archelon and others.

    I will investigate these fees further and post more info later.

  9. def

    def Sponsor

    riskless, you are wrong about who these fees are aimed at. as you know, firms like TImber Hill, Hull et al have made eurex the sucess it is. market makers have had restrictions on the number of updates for a long time.

    these days, anyone can get their hands on an automated system. while I do not agree on how they implement the rules, i can understand why the put them in. At IB there if you do 1 trade per 5 orders, there is no fee. this seems reasonable.
  10. corvus


    def, so let me get this straight...if I put in an order for ESTX50 and cancel, 3 times, and then put in an order and get filled, there is no fee?
    #10     Feb 22, 2003