New CME Fees

[barefoot]

I assume everyone is aware that CME is imposing new fees starting tomorrow, June 1. They will charge $1 for every order or change order. They will credit $5 for every fill. This could affect how we trade, especially concerning trailing stops. When using Simulated stop, ninja places a "Safety stop" away from the market, does it not? Does this safety stop trail along with the synthetic stop?

[barefoot]

Apparantly, I didn't have the whole story. CME doesn't start charging brokers until August. Interactive brokers is starting to charge these fees June 1.

I'll be shopping for a new broker this week.

Also, it is my understanding that stop market orders are not native on Globex, only on IB's servers. So a trailing stop will not pose a problem. Is this correct?

[Nereus]

Yes... this is a bit unclear to me as well. There is a good discussion at this link:

http://www.elitetrader.com/vb/showth...threadid=50056

on the last page"businessman" mentions that stops and trailing stops native to IB are not native to globex. ...

I would like to see documentation from IB re: this info.

[NinjaTrader_Ray]

IB is NOT charging. They are revising their plan to synchronize with the August 1st date issued by the CME.

[trymph]

What if entries and bracket orders could have setting to be always either a sim stop or in the case of those with J-trader be on the firm's server rather than going to the exchange. I do know my firm with J-trader has ability to specify all stops be on the "SYOM" which is Patsystemsdevlopednon exchange native server at the firms' house. Also I have been thinking of making all my orders either entry or brackets somehow be synthetic stopsso that I can specify the bid/ask size ratio to trigger the order. This way all orders wouldnt be charged the fee as they'd be on either your hard drive or the firms'. Alittle more dangerous with regards to disconnects but maybe worth it?? Of course if trailing then each tick at least in ES is worth alot more than the $1 fee. Just a thought. I'm including the target portion of the bracket to be a stop also so that it could be directed as a sim or firm stored order. There goes quene priority........Damn those guys at the CME they are too smart.



I realized I should have said Market IF Touched (MIT) rather than stop order for targets and even entries depending on the whether your fading the direction (MIT) or jumping on the direction (STOP). Of cours MIT can be mkt/limit type. MITwould belike a chase oder here in NT environment.

[Alfred]

Here is a CME link that explains the new fee policy.

http://www.cme.com/files/CMEMessagingPolicy.pdf