CME Group to Waive Fees for S&P 400 MidCap Equity Index Contracts

[thrunner 10]

The waivers is in effect March 3, 2008, and continue through December of this year.

The volume of EMD is about 4-5x lower and there may be some range spread at opening, closing and near EST lunchtime 11-1, 2.

As some have mentioned in the other thread: http://www.traderslaboratory.com/forums/f18/fyi-er2-is-moving-1918.html

EMD may be a little less jumpy than ER2 during these periods (see cyan line below for the range spread).

 

http://cmegroup.mediaroom.com/index.php?s=43&item=693

 

CME Group to Waive Fees for S&P 400 MidCap Equity Index Contracts

PRNewswire-FirstCall

CHICAGO

(:CME)

 

CHICAGO, Feb. 15 /PRNewswire-FirstCall/ -- CME Group, the world's largest and most diverse exchange, announced that CME Globex® and clearing fees will be waived for all S&P MidCap 400® and E-mini® S&P MidCap 400 Index futures and options on futures for all market participants. The waivers will go into effect March 3, 2008, and continue through December of this year. The waivers in the S&P MidCap 400 products are similar to the fee waivers for the S&P SmallCap 600® products already in place.

 

The S&P SmallCap 600 and MidCap 400 contracts, along with other products in the equity index complex, are attractive alternatives to the Russell 2000 contract, which will no longer be listed on CME Globex following the September 2008 contract expiration.

 

[email 10]

thrunner,

 

Thanks for the info, looks very interesting. I may look into it.

cheers,

email

[thrunner 10]

I can confirm that the cost for trading EMD under TradeStation is $2.42 RT (round trip) vs about $4.70 RT for other CME stock index futures. You will need to be on the unbundled plan, which most newer accounts are. I am not sure about other brokerages such as IB who also have unbundled plans.

Apparently if you are on the bundled plans, the savings will not be passed on to you and your broker pockets the difference.

 

The only drawback to EMD is that the volume is thin. However, if you are trading 3-5 contracts at a time, there shouldn't be a problem and the savings could be significant, especially for a scalper.

 

The range spread is really not as bad as it looks by the indicator, it is fairly isolated to a single bar that usually has a greater ATR in the ER2 vs EMD, thus making EMD less jumpy in the aforementioned periods (usually opening and closing).

 

Edited March 26, 2008 by thrunner
add updated picture

[dcstrategies 10]

i have had some significant slippage trading emd with a 5 lot position--so maybe 1-2 could work, but currently there is not enough liquidity. Also, TS prices always seem to be around 5.00 rt no matter what market it is. I must be on a different plan

[thrunner 10]

Thank you. I should qualify the lot position by saying these were limit orders. TS recently (as of Mar 15 or so) updated their billing system on EMD, you should be getting a credit if you are on the unbundled plan.

[dcstrategies 10]

what is the unbundled plan? I have been with ts for 3 years--don't think i have seen that

[thrunner 10]

This is all verbatim from their thread on TS, should be all public information. It is something new to me as well

Posted - 03/22/2008 08:15:27

Just for clarification...if you are on our 'unbundled' plan then you will realize the fee waivers as your plan calls for TradeStation's fee plus the exchange's execution and clearing fees (if any) passed on to you. In this case, for example, it would be $1.20 + $0 (fees). If you are on our 'bundled' plan then you would not realize any fee variances as that plan calls for an 'all in' approach (ie $2.50/contract all in).

 

If anyone is interested in switching plans you can contact customer service. Please note that there are other differences in the plans as well. For example, there is a $0.10/contract/day carry charge for positions carried overnight when using the unbundled plan that you will not see a separate charge for when you are on the bundled plan.

 

Additionally, as Goose alluded to, there was a configuration issue at RJO which ignored the fee waiver. That has been corrected as of trade date 3-20-2008 (including any necessary credits for prior trades eligible for fee waivers).

 

 

The bundled plan (ie $2.50 per contract all in) that I referred to is a legacy commission plan of ours that we previously offered. We moved to the unbundled approach at least a year or two ago where your charges for TradeStation's commission fee, the exchange's execution and clearing fee, and the overnight carry fee are broken out and charged seperately. Not all customers have chosen to move to the unbundled commission plan, so we still have customers that are on a bundled plan.

 

For further details on our current commission plans, contact client services or sales or visit the link below.

 

http://www.tradestation.com/fees/All_Asset_Types.shtm

[dcstrategies 10]

a simple call in to TS and they will change the plan to reflect these discounts.

[Infinity_Tom 10]

a simple call in to TS and they will change the plan to reflect these discounts.

 

I agree the MidCap 400 is thin now, but I suspect that to change when the Russell moves to ICE.

 

If you are interested in MidCap 400 you can demo trade it by clicking here http://www.infinityfutures.com/demoforms/IATdemo.aspx?ref=jlee

 

Trade it live for $0.75 per contract all in.

 

Best regards,

 

Tom

[Guest forsearch]

I agree the MidCap 400 is thin now, but I suspect that to change when the Russell moves to ICE.

 

Tom,

 

Does AT have any ICE contracts active right now?

[Infinity_Tom 10]

Tom,

 

Does AT have any ICE contracts active right now?

 

FS,

 

Nothing with ICE right now. We will write to the ICE exchange for the Russell 2000.

 

I'm curious, do you currently trade any products on ICE?

If so, have you ever had any issues with the way ICE handles stop orders?

It is possible for stops to be traded thru on ICE and be unable. I know they are working on this but currently it is not a very comforting scenario.

 

Best regards,

 

Tom

[rebroker 10]

Today for the first time I have observed the EMD and I liked what I saw. I was trading the russell because of the added profit, but didn't like the whip-saw action too much. The EMD will crank out the same profit with a better flowing action with fewer surprises. I compared back history on line charts of the EMD and the russell, the EmD appeared better and easier to read, where as the russell had more of a random nature before a solid move. I have always like a chart that ticks in tenths of a point, which makes for a better flowing chart, instead of the ES which is more blocky. Volume need to pick up,...early morning was difficult. Will take more observations to get a better grip on my opinion. Conclusion: the EMD has the cranking profit potential of the russell, with fewer whip-saw action.

[bh_trade 10]

Pretty good understatement. Volume in that contract is anemic at best. I also like the tick value/range component of ER2 and tried trading a few 1 lots of EMD a few weeks ago and honestly, I didn't care for it much. Try watching it on an overnight session sometime, could drive an 18 wheeler sideways through the bid/ask spread. That contract has a long, long way to go if it is going to become the CME's replacement for The Russell.

 

 

Volume need to pick up,...early morning was difficult. Will take more observations to get a better grip on my opinion.

[Guest forsearch]

Those interested in trading the Russell on ICE can go to the following webinar at 4:30 EST June 18 (this afternoon), featuring Ray McKenzie, Vice-President of ICE Futures US:

 

http://www.alaron.com/registerseminar.aspx?display=russellice1 to register.

 

-fs