The Chicago Mercantile Exchange plans to give commodity advisors and hedge funds trading on its foreign exchange a reduced rate for nine months, but the offer only applies to those that hold a $50 million in assets under management and trade more than 125,000 sides per month.
For CTAs and hedge funds that meet the monthly volume, their total transaction fees, including CME Globex charges and clearling fees, will be reduced to $0.60, or by more than 60% of the usual $1.60. The 9-month program will begin on November 1.
“We are continually looking for at ways to keep CME futures competitively priced and believe that eligible CTAs and hedge funds will find our FX markets more attractive than ever,” said Rick Sears, managing director or CME foreign exchange.
The incentive is similar to another CME offered to CTAs and hedge funds in August this year, which applied to those with assets under management at or above $2 billion.