On March 1, 2014, the CME Group will be making several changes to the cost of market data. This memo below will briefly cover the changes, but it is important to note that the CME Group is discontinuing the market data trading waiver, and will be introducing a non-professional policy as well as changes to the fee schedule for professional users accessing CME Group market data. The CME is also making changes to the Market Data Non-Display policy. We strongly suggest that you become familiar with all of the CME Group Market Data changes and fully understand the new fee structure as well as communicate all necessary information to your clients.
**NON-PROFESSIONAL & PROFESSIONAL FEES STARTING MARCH 1, 2014
*|Monthly User/ Device Fees|Notes|CME|CBOT|NYMEX|COMEX|
|Real Time: Professional|i.,ii.,v|$85|$85|$85|$85|
|Real Time: Non Professional Market Despth|iii., v.|$5|$5|$5|$5|
|Real Time: Non Professional Top-Of-Book|iv.,v|$1|$1|$1|$1|
i. Fees cover all contracts (pit traded* and electronic).
ii. Kansas City Board of Trade (KCBT) HRW Wheat (Hard Red Winter Wheat) User/Device Fees Real Time Package is $25 Monthly.
iii. Non-Professional Depth of Market Package $15 monthly, per device, for all CME Group Exchanges.
iv. Non-Professional Top of Book Package $3 monthly, per device, for all CME Group Exchanges.
v. Certain user/device fees may be waived for existing (as of March 1, 2014) Subscribers that are grandfathered into the trading waiver for 2014. Certain reduced fees will apply for such grandfather Subscribers thereafter pursuant to the Letter. For avoidance of doubt, any existing fee-liable Subscriber may not move to the waiver under the above outlined migration process after March 1st, 2014.
*any access to PIT data will result in Professional level fees.
Please read the industry standards below to see if you and/or your client meet the guidelines for a Non-Professional Subscriber.
NON-PROFESSIONAL SUBSCRIBER - Any natural person whom a market data Distributor has determined qualifies as a “Non-Professional Subscriber” and who is not:
(a) Registered or qualified with: the Securities and Exchange Commission, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association, nor
(b) Engaged as an “investment advisor” as that term is defined in Section 201(11) of the Investment Advisor’s Act of 1940 (whether or not registered or qualified under that Act), nor
© Employed by a bank or another organization that is exempt from registration under Federal and/or state securities laws to perform functions that would require him or her to be so registered or qualified if he or she were to perform such functions for an organization not so exempt.
Non-Professional may also include certain small business entities (limited liability companies, partnerships, trusts or corporations that are not affiliated with any entity that may be considered a Professional) whose primary business purpose is not trading and such entity must have no more than two trading terminals under that entity (or its affiliates’) name.
Subscriber must be viewing the data via a device capable of routing orders to CME Globex and have an active/capitalized futures account.
Subscriber must NOT hold or lease any type of membership at any of CME Group’s DCMs.
Any person who does meet the above criteria (1, 2, 3 & 4) is considered a Professional Subscriber.
MARKET DATA NON-DISPLAY POLICY
The CME has also revised their Non-Display policy, which will apply to anyone accessing, processing or consuming CME Group Market Data for a purpose other than in support of its display or distribution. Use of market data within automated trading systems will now be part of the Non-Display license. Categories have been established within the Non-Display license as follows:
A.Automated Trading Systems (ATS) – systems that use CME Group information to trade via automated systems, either for purposes of routing orders to CME Group or to other exchanges
· User Non-Display License – CME will be introducing a reduced rate to a distributor that is a single user (for avoidance of doubt, this does not include a single user at a firm, but rather a single user subscriber) of non-display market data for purposes of automated trading when market data is received directly from CME Group or through an uncontrolled feed through a third party. The existing Sub-Vendor Access fee and new Category A: Automated Trading System License fee have been combined at a rate of $375 monthly/exchange. The user is required to complete a Market Data License with CME Group and remit license fees to CME directly.
· Managed User Non-Display – CME will be introducing a reduced rate to a subscriber that is a single user (for avoidance of doubt, this does not include a single user at a firm, but rather a single user subscriber) of non-display market data for purposes of automated trading when they receive market data controlled through a third party provider. The single user would need to complete a subscriber agreement and send to Vision, we report Managed User Non-Display to CME, and the user would be billed by Vision a reduced rate of $170/monthly per exchange.
B.Trade Internalization – the user of market data in systems that match trades within an organization, as opposed to routing to the exchange
C.Internal Non-Display – use of data for systems processing and calculations, such as portfolio management, credit and risk systems and all other forms of non-display user
ALL subscribers of NON-DISPLAY use must enter into an agreement directly with the CME for such use, prior to receiving data. Effective March 1, 2014, the following fees will go into effect:
[TD]Non Display License Fees per Month|CME|CBOT|NYMEX|COMEX|
|Category C| 0| 0| 0| 0|
· ALL USERS WILL BE PROFESSIONAL SUBSCRIBERS BY DEFAULT.
It is extremely important that all NON-PROFESSIONAL subscribers complete the CME Group Non-Professional Self Certification Form (attached) immediately and send back to firstname.lastname@example.org to avoid being charged professional rates.
· Any user (professional or non-professional) set up prior to March 1st and receiving data for a particular exchange is grandfathered in and all fees will be waived for the remainder of 2014. Starting with 2015, PROFESSIONAL users will pay 50% of the fees, and starting in 2016 PROFESSIONAL users will pay 100% of the fees. Starting with 2015, NON-PROFESSIONAL users will be liable for 100% of the fees listed above. If you add additional market access AFTER March 1st, it will be billed at 100% of the fee listed above.
· Any user (professional and non-professional) NOT grandfathered in (set up AFTER March 1st and was not previously receiving market data) will be charged 100% of exchange fees listed above starting March 1, 2014. There is no waiver for anyone set up after March 1st. *Please note, if they were set up at a previous FCM prior to March 2, 2014 they would be considered grandfathered in and would need to complete the CME Group Subscriber Trading Waiver Migration Request form (attached) and send back to email@example.com prior to setup at Vision to avoid additional fees.
· ALL users (professional & non-professional) are required to have order routing capabilities and have an active futures account. We will NOT be able to set any accounts to view only to receive market data.
· The CME has published FAQs on these changes that can be found here: http://www.cmegroup.com/market-data/distributor/files/market-data-policy-changes-faq-2014.pdf.
· Optimus Trading Group is not responsible for any misprints or changes in fees put forth in this memo or in any CME memo. All fees charged by the CME to Vision will be passed through directly to clients and brokers. If you and/or your clients currently have access to market data that is not needed or do not wish to pay for in the future, you will need to e-mail firstname.lastname@example.org to have the access shut off to avoid any additional fees.
Should you have any questions, please do not hesitate contact our Market Data Team via e-mail at email@example.com