OneChicago changes fee structure
13 April 2011 Chicago
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OneChicagois modifying its trading fee structure in a move that it says will illustrate the superior financing rates and significant cost savings market participants experience while carrying their equity exposure via security futures. As interest rates rise, the value proposition will be accentuated.
The details of the new fee structure are:
OneChicago fees will be divided into two parts – an execution fee, charged to the executing firm and a daily carry fee, charged to the carrying firm.
OneChicago's execution fee is $20.00 per $1 million (2/10th of a basis point) dollar executed notional value.
OneChicago's carry fee is $1.00 per $1 million (1/100th of a basis point) dollar notional value per day. For fee purposes, OneChicago will cap the settlement price value at $120.00.
Futures on narrow based indexes will remain on a per contract basis at execution with no carry fees. The new fee level for futures on narrow based indexes will be $1.00 per side per contract vs. the current $.50 per side.
"We are always looking for ways to highlight the cost savings and superior financing that security futures provide to our members," said David Downey, CEO of OneChicago. "Using security futures as a financing tool with our new fee rate structure will offer direct comparison to current financing costs for customers. The implementation of this fee structure also sets a new industry standard for trading listed derivatives."
The change will be effective on May 1, 2011.
The details of the new fee structure are:
OneChicago fees will be divided into two parts – an execution fee, charged to the executing firm and a daily carry fee, charged to the carrying firm.
OneChicago's execution fee is $20.00 per $1 million (2/10th of a basis point) dollar executed notional value.
OneChicago's carry fee is $1.00 per $1 million (1/100th of a basis point) dollar notional value per day. For fee purposes, OneChicago will cap the settlement price value at $120.00.
Futures on narrow based indexes will remain on a per contract basis at execution with no carry fees. The new fee level for futures on narrow based indexes will be $1.00 per side per contract vs. the current $.50 per side.
"We are always looking for ways to highlight the cost savings and superior financing that security futures provide to our members," said David Downey, CEO of OneChicago. "Using security futures as a financing tool with our new fee rate structure will offer direct comparison to current financing costs for customers. The implementation of this fee structure also sets a new industry standard for trading listed derivatives."
The change will be effective on May 1, 2011.
NO FEE, NO RISK
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