Does anyone see any growth in the ym market and seat prices for idem? If you are an active trader and buy a seat you can get a good 15% return on your $$$ just from exchange fees. There has got to be some uncertainity for the low seat price. What is the deal? It's only $29,000.
I'm buying one, just waiting for paperwork. Nonstock memberships are significantly cheaper. Plus the future of floor trading seems pessimistic. So more and more might unload memberships. I just want the opportunity to fly into chicago and be able to step into equity pit at the CBOT. Purely entertainment. The clearing firm I talked to said its not worth it since the volume is greater on the ECN's.
The IDEM last went for $29,000, trade the ym with greatly reduced exhange fees. It is non equity. When the es came out the cme had something similar, but it was a yearly fee to reduce exhange fees just to entice liquidity. Very low at the time, a few thousand dollars. Now the seat for the eminis is $250,000+, that is an equity seat with a special class of shares attatched. If they ever shitcan the ym the seat is worthless, that's the risk. Or they could increase the fees for seatholders as well if it gains traction. No equity so nothing you can do about it.
your commissions are cut in half,4000 a month to 2000 is 2g a mo. times twelve is 24k,pays for itself,or you can rent it for 900 a mo.
One other aspect, sometimes overlooked is the tax consequences. Purchase or lease of a seat makes you a professional dealer as far as Uncle Sam is concerned. You are then *required* to pay SE tax. Additionally, you must pay 3rd party "professional" fees, when/if needed. The break-even calculation is more complicated than figuring commisions/fees. Osorico