ELX Futures, the electronic exchange, has slashed its fee to a new 9 cent one-tier bundled fee schedule for market users trading all U.S. Treasury and Eurodollar futures contracts on ELX, effective February 1, 2011. The advantage of this new single-tier low price is that it promises to significantly reduce transaction costs for all types of market participants. There are no minimum average daily volume (ADV) requirements and market participants will have the operational simplicity of only one fee tier. The ELX model also has a simple no-cost registration process without traditional membership obligations and no fee surcharges for block trades, EFRPs, errors, give-ups and trade busts. Under the old pricing, the minimum volume was 400 contracts monthly ADV (average daily volume) to qualify for the 9 cent fee in US Treasuries, and anyone trading 400 or less was charged 24 cents. For Eurodollars, the old pricing was 18 cents per contract.
The new 9-cent price for all ELX’s current products follows ELX’s reduction of minimum block trade levels to 300 contracts from 1,000 contracts for the 5, 10, and 30 -year U.S. Treasury futures contracts as well as the Ultrabond. We also have experienced a significant increase in volume, and market share, making this fee change a compelling reason to experience what ELX has to offer. In a statement in today’s release, Neal Wolkoff, CEO of ELX Futures, said, “ELX is committed to providing price competition and superior services to market participants. This new single-tier fee schedule is another new ELX initiative to benefit customers and foster competition in the global futures market.”
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio