CME Group expands international incentive programs. New rules will include a simplified fee structure and will be extended until 31 December 2010. Incentives are applicable to CME, CBOT and NYMEX Products.
The international incentives will include CME and CBOT products effective 1 February 2009. NYMEX products will be included 1 April for the International Incentive Program and the Asia-Pacific Incentive Program and later in 2009 for the Emerging Market Incentive Program. The programs include:
The International Incentive Program (IIP) will enable proprietary trading firms and trading arcades located outside of North America to receive discounted fees for electronic trading of CME, CBOT and NYMEX products. This program was formerly limited to European proprietary trading groups and trading arcades under CME’s European Incentive Program.
The Emerging Market Incentive Program (EMIP) will provide fee incentives for CME, CBOT and NYMEX products trading electronically. The EMIP also will continue to encourage the development of new traders at proprietary firms operating in countries not actively involved in global futures markets.
CME Group previously served this market segment through The CBOT Global Developing Markets Program and CME Emerging Markets Partnership Program, which are now being combined to form the EMIP.
The Asia-Pacific Incentive Program (AIP), which provides discount fees for Asian banks, will now offer incentives to trade all CME, CBOT and NYMEX products.
“CME Group’s commitment to its global customers is made even stronger through these expanded incentive programs,” says Rick Redding, managing director, Products & Services, CME Group. “In the last five years, our volume during non-U.S. trading hours has increased from four to 18%, and more than 250 participants have enrolled in our European, Asian and emerging market incentive plans.
“In the last two years, our international telecommunication hub volume has increased 218 %. The extensions announced today will allow more firms to access these markets and continue to build liquidity around the clock, around the world.”
L.D.