Thinking about CME/IOM membership

Discussion in 'Professional Trading' started by heech, Jan 22, 2011.

  1. FSU

    FSU

    IMM seat leasing currently for $1,300 a month. As mentioned earlier check into the LLC rebate program.
     
    #21     Jan 26, 2011
  2. heech

    heech

    I assume you're talking about the electronic corporate memberships, which is only available for those trading prop funds in a corporate (including LLC) format.

    For anyone accepting outside investor funds, that's not available.
     
    #22     Jan 26, 2011
  3. Just refreshing this thread as I am considering getting CME membership

    Heech, did you ever get the membership? Did you lease or buy? If so , how has your experience been. How was the application process? Are the savings worth it?

    Any others who care to share their experiences with CME exchange membership?

    Thanks.
     
    #23     Feb 8, 2012
  4. heech

    heech

    Heh, I'm kind of embarrassed to admit this... but no, I never went through with it. I got the initial paperwork done, but they had a few bureaucratic issues they wanted me to follow up with (pseudo-silly stuff like organization chart, etc, etc). And I just got caught up in other stuff, so never updated my application.

    It's still frozen over there. I'll get back to it if/when my volume get significant enough that the cost savings are screaming in my face. Right now... it's still more of a break-even situation even if I went forward with it.
     
    #24     Feb 8, 2012
  5. Thanks, heech for the quick response.

    No need to be embarrassed.

    I know the feeling..the amount of paper work, bureaucratic hassles required of traders for account opening and other issue can be so time consuming and frustrating!

    Quick question:

    The CME has 106.H which you can get by leasing two memberships.

    The CBOT has the Rule 106.S. family of funds trading member firm. With this the member" is required to own or have assigned to it two B-1/Full memberships and one B-2/Associate membership. "

    Does an assignment here for CBOT 106.S imply a "lease" similar to the explicit "lease" language used in the CME 106.H requirement??

    Thanks!
     
    #25     Feb 9, 2012
  6. heech

    heech

    Yes, I believe the answer is lease = assignment.

    Don't hesitate to reach out to the CME directly to ask; they have staff which will ultimately be looking at your application... so doesn't hurt to have them involved now.
     
    #26     Feb 9, 2012
  7. Thanks, heech. All the best to you!
     
    #27     Feb 9, 2012
  8. garachen

    garachen

    Yeah, this is something that should take place between you, your clearing firm and the CME. Basically, you explain your scenario to your clearing company and they can let you know if there is any precedent for using a seat that way. I've seen some crazy stuff, like people using a seat and assigning it to their company at the same time or people 'leasing' the stock requirement for a corporate seat.

    There are a lot of special cases - more than are covered by the website so I suggest you talk to your clearing company. And there are some exceptions for single and 2 member LLC's

    I've bought several seats, the application process is pretty smooth.
     
    #28     Feb 10, 2012
  9. IIRC, anyone who owns or leases a seat is subject to FICA taxes. this alone prevents many traders from doing this. sure you can save some money on each RT but then the gubmit takes it.
     
    #29     Feb 11, 2012
  10. This should be only for corps/people residing in the US I assume. People/corps outside of the US shouldn't have that issue since this is a US tax.
     
    #30     Apr 26, 2015