Q: Exchange Seats

Discussion in 'Options' started by toshiaki, Mar 1, 2021.

  1. toshiaki

    toshiaki

    Is there a primer on the purpose of exchange seats and how they affect options commissions? I trade only equities and stock options - no futures, commodities, etc.

    My basic understanding is that you can lease a seat on CME for example and then send your info to Interactive Brokers to get your discounted transaction rate. I don't see much info on how much of a discount you actually as compared to paying 0.65/contract.

    I'm non-US so this might not be applicable to me but I'm wondering how much someone could actually save with a seat.
     
  2. ZBZB

    ZBZB

    You want an IOM seat for index futures. Last trade $19,000 plus $2,000 application fee. Call CME and ask for membership. They will email you the forms to fill in. When you are accepted as a member email membership at interactivebrokers.com and they will apply the exchange fee discount.

    savings $1.23 exchange fee per contract.
     
  3. FSU

    FSU

    If you only trade equities and stock options, the CME seat won't help you lower your fees.
     
    Lou Friedman and rb7 like this.