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I get the feeling that they(CME) know, no matter what fee increase they put out, there will be an uproar. So they put out the worst case scenario first and survive the initial sh*tstorm. Then, if they back off even half way, they are still ahead and the customer will let out a sigh of relief knowing it could have been worse. At that point many will live with it.
Can you help answer these questions from other members on NexusFi?
Your right,... still, HFT's make up 60% of all CME volume. Thats why they targeted them in their rate changes. If the 40% who are left is reduced who are the HFT's going to feed off of? Somebody is going to lose regardless.
Great information, like many others here Id like to thank Mike for getting this upfront so we can be forewarned and ready to rethink our costs.
I don't say much, I read a lot!
On Monday, I saw the email we are sending to all IQFeed/DTN.IQ customers regarding improvements made during 2013 and 2014 pricing. It will be emailed this week. We always send this letter during the first week of Dec (along with changing prices on our site to reflect 2014), and this year is no different.
First couple paragraphs from it:
What is different is that CME Group is raising fees and stopping the waivers program. It's been in the news since Nov 12,
The reason we didn’t send communication to our customers or comment on forums is because there are multiple moving pieces and we don’t want to provide inaccurate info while we gather more details. You all know I like to have the facts straight before commenting. Conjecture and rumors don't help anybody.
It's important to remember that for traders with waivers, this is a non-issue until Jan 2015. You will keep your waivers through 2014, and that is true for anybody who gets waivers prior to Mar 1, 2014.
We received the Pro/Non-Pro rules from CME today. They reflect the rules Mike posted from CME, with no mention of Corp/LLC, but we are asking for clarification on that since the RCG letter mentioned it . We'll advise as soon as we know more.
Regarding the IQFeed site showing $91/mo for CME Group Non-Pro's, that won't matter until Jan 2015. It will be updated well prior to that to reflect the lower rate. I learned in a meeting about this earlier today, that in order to qualify as a Non-Pro, you not only need to answer "No" to all the questions on the CME Group form, but you also have to be qualified as for the old waivers program. Assuming you still have waivers come Jan 1, 2015, and have answered the CME form as a Non-Pro, you will get the lower Non-Pro rates eff Jan 1.
Since one needs to "qualify for waivers" to be a Non-Pro after Jan 2015, the CME Group Waivers page on the IQFeed site will remain but be changed to reflect "CME Group Non-Pro Qualification" page or something to that effect. The same steps will be required but for a different purpose. Instead of brokers verifying funded accounts to permit waivers, it will be to permit Non-Pro status.
This is a big transition for all of us, and we will continue to keep everybody informed with facts as we get them.
Algorithmic, or HFT? Big difference. I figured algorithmic was more like 80%, but definitely not HFT. Honestly I could be way off, I don't really focus on that.
I am not sure on the algo vs HFT.. to me they are the same. In the article below they refer to HFT trading in milliseconds and microseconds. This has to be Algo to trade this way.
Not the same. Most executions are algorithmic, but it has nothing to do with high frequency or low latency. It has to do with the banks and firms wanting to get the best price for their clients so they use sophisticated formulas instead of just dumping big volume when an order comes in.
I cannot think of any article that reliably has facts that really break it down by a profit center, firms that make their money on algo trading vs HFT trading.