CME Group (NASDAQ:CME), a global derivatives marketplace, has announced many pricing changes for each of its product exchanges (CME, CBOT, NYMEX and COMEX) to come into effect as of January 1, 2016 pending CFTC regulatory approval. Among the more relevant changes are those related to FX, metal and interest rate products.
For FX and E-mini FX Futures, the CME is adding spreads to volume discounts. Globex trades and give-ups are currently eligible for the reduced fees based on the monthly average daily volume (ADV) thresholds noted in the chart below. Effective January 1, 2016, Globex spread transactions will also be included when determining the monthly ADV and applying the reduced fees.
Clearing fee rates for E-mini and E-micro FX Products that currently include fractional cents will be rounded up to the nearest whole cent.
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The majority of fee changes in metal and interest rate products seem to affect mainly non-members. The ClearPort Exchange Fee for core Metal Options will increase by $0.10 per side for non-members from $1.45 to $1.55. The Exchange Fee rate for electronic transactions in the 10 Year U.S. Treasury Futures will increase by $0.10 per side for non-members from $0.59 to $0.69. The Exchange Fee rate for electronic transactions in the U.S. Treasury Bond Futures will increase by $0.15 per side for non-members from $0.59 to $0.74. The Exchange Fee rate for electronic transactions in the Ultra U.S. Treasury Bond Futures will increase by $0.20 per side for non-members from $0.59 to $0.79.
As for interest rate products, the CME Globex fee discounts that currently apply to members and non-members for CME Eurodollar Futures contracts with longer than 3-year expirations (Blue through Copper) will no longer apply to the Blue contracts – these discounts will now apply only to CME Eurodollar Futures contracts with longer than 4-year expirations (Gold through Copper). The Block Surcharge for Interest Rates Futures and Options will increase by $0.10 per side across all member and non-member categories.
In November the CME Group reportedly joined forces with the London Stock Exchange, LCH.Clearnet, Societe Generale, UBS and Euroclear to form a ‘Blockchain Settlement Group’ that would explore how blockchain technology can streamline post-trade processes.