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John,
Curious if you have any thoughts on the future of CME currencies. Word is
that the volume is withering away. Having recently switched to a internet
cash forex firm, this is easy to see. No way I would ever go back. 24 hour
stops/ 24hour tight spreads... Are you aware of any plan the guys have to
protect their franchise? Based on what I see, it would appear that the
currency world will soon be owned by whomever survives the (inevitable)
consolidation of the cash e-brokers. I have not looked at a currency
futures quote in months.
Chris
----- Original Message -----
From: <I4Lothian@xxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Thursday, December 21, 2000 3:08 PM
Subject: Re: CME fees / was Re: Unidentified subject!
> I think the delineation between trading terminal and quote and charting
> service is the key one. If the quotes are on a trading terminal that the
CME
> is going to receive fees for trades done, then they have that income
stream.
> If the feed is going to a charting system, then there may not be trades
> generated, thus no income. So they charge for that.
>
> Also, I think the CME was very aggressive in going to the free quotes for
the
> emini contracts, currencies and newer contracts. I think this was one of
the
> keys to them establishing the new emini markets. However, the other
> exchanges only matched the CME with limited time offers for free quotes.
The
> market did not move to the CME position. Thus, the CME moved back to
where
> the rest of the market was. Right or wrong, I can understand this
> competitive stance, especially in light of the next generation trading
> terminals which will have the streaming quotes.
>
> Of course, if the CBOT had a pile of cash rather than a pile of debt, we
> could have come out with a different outcome to this. They may have well
> matched the CME's free quote offer. But we will never know.
>
> Regards,
>
> John J. Lothian
>
> Disclosure: Futures trading involves financial risk, lots of it! John J.
> Lothian is the President of the Electronic Trading Division of The Price
> Futures Group, Inc., an Introducing Broker.
>
> In a message dated 12/21/00 1:04:48 PM Central Standard Time,
> sean@xxxxxxxxxxxxxxxxxxxx writes:
>
> << Good points John. However, many users of lower end data feeds have
been
> known to look at the live charting web page at quote.com when their own
> feeds are down. This service will not remain available under the new
plan.
>
> The CME's biggest mistake, however, is the increase in fees from $10/mo
to
> $60/mo for non-professional, real-time data. The whole idea of the $10
fee
> was to get the stock trading day traders to add the feed and,
potentially,
> trade the mini s&p and nasdaq. The discounters will tell you that this
> strategy has been a success.
>
> I have watched the merc and the board shoot themselves in the foot so
many
> times over the years. Let's see what the CBOT does to match this
blunder.
> Perhaps they could raise fees for a/c/e bonds and notes traded during the
> regular trading session!
>
> Sean
> >>
>
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