Ha. I’m both pleased and embarrassed. Pleased that someone accurately corrected me. It’s like the internet worked. Very good. Embarrassed because l tend to forget about those income capped taxes.. So yeah. For <1M or so it’s a consideration. With enough trading the fees are such an issue that you have no choice on CME. On other exchanges I usually opportunistically declare because ‘membership’ gets very ambiguous.
Just 10 years ago, the seat sold for over $1 Mil a pop. Man I feel sorry for those folks. Who knew it would come down so much. I just might as well wait a few more years. At the going rate, who knows, we might see it swoon under 10 grand (IOM).
Some more detail on question 2. If you lapse OR change seats (lease from a different seat owner on the same exchange) within 60 days there is a $300 fee. If you lapse for more than 60 days but within a year there is a $500 fee. If your lessor sells the seat you are leasing and you lease a new seat the same day without technically lapsing, you still have to pay a $300 fee. If you wait for more than a year you have to pay the full application fee again. Source: https://www.cmegroup.com/company/membership/files/shortform.pdf
If you scroll down the page https://www.cmegroup.com/company/membership/individual/cme.html#pricing , there are half a dozen offers for seats to lease $200/month (for the IOM, lowered costs on Emini). Have periodically seen those leases go off at $150/month FYI..
Hi, I am also currently inestigating a seat for ES trading. Still early stages because I am based in the UK and I still need to do my work on tax implications. I am new to the whole topic and currently trying to undertand what would be required if I only trade ES futures? Full CME membership? What does IMO exactly stand for and what does it cover? I am looking at this site for information: https://www.cmegroup.com/company/membership/individual/cme.html#pricing Is there a database for past CME seat transactions to get a sense hot the prices evolved over the years? Still unsure if buying or leasing is better.
IOM is fine for ES and will cost you probably between $200-$300 a month for a lease, buying one will probably be around $25K currently. Here you can see what IOM includes. https://www.cmegroup.com/company/membership/individual/cme.html Not sure if there is a list of past transactions however you can see recent sales/leases on the CME site. Edit: i would probably go with leasing, easier process and you can lease many years for the price of a purchase.
More information regarding the fees can be found here: https://www.cmegroup.com/company/clearing-fees.html If i remember correctly you save around $0,73 per contract as a leaser and $0,85 if you own a seat. Could be changed by now, didn't check. Also do not forget you need to pay $2000 for your application which is non refundable if your application gets rejected by the CME. Ps. Here you can see past sales. https://www.cmegroup.com/company/me...ricing/cme-historical-membership-pricing.html
Have helped more than a few clients get CME memberships in different forms. If you been trading for a while and trading volume of 2000+ eminis per month than it makes sense. Be happy to assist if you like, feel free to PM me.
Thank you both. Really appreciate your help. I will look into the details. Just one other question, is a IMO seat valid for lifetime if I buy it? And can it be resold any time again?