ELX Futures, the New York-based US futures exchange, is taking on the already established Chicago Mercantile Exchange Group (CME), with an introductory offer of free trading in the month of July – reported Reuters. ELX is entering the exchange arena as the Obama administration had proposed to bring more derivatives on to exchanges as part of its financial markets overhaul.
The initial suite of products will offer trading in US Treasury futures contracts, with the intention of moving into other major asset classes in the future.
Billing for customers will begin in August with a simple fee schedule for customers. ELX Futures will have a $0.09/contract bundled fee (clearing and exchange fees) for users with Average Daily Volume (ADV) above 400 contract sides. For low volume users at or below 400 contract sides of ADV, the bundled fee is $0.24/contract. The new fee schedule will represent a large reduction in costs for most market participants.
Neal Wolkoff, CEO of ELX Futures, who previously headed the American Stock Exchange, said: “We plan to compete aggressively and offer our customers the best in service, technology and fees. We are confident that market participants will see a noticeable difference in our technology, fee structure and customer service, and will welcome ELX Futures as an innovative alternative in the futures market.”
