Chicago Mercantile Exchange (CME) has added new
functionality alongside discounts for electronically traded
options on futures.
Starting 25 March, CME Globex will feature user-defined
spreads, which allow traders to create a spread if the exchange
does not already offer it. The new functionality applies to
options on CME interest rates, equities, FX and commodities.
CME began offering user-defined spreads last July on Eurodollar
futures and options, when it introduced functionality for
covered, or delta neutral spreads. Since then, over 550,000
contracts have traded in covered transactions on Globex across
all CME products groups.
Electronic options volumes on CME averaged 123,000 contracts
daily in 2006 and represented 13% of the overall options
CME also announced improvements to its CME EOS Trader, the
exchange's Internet-based trading application. The system
allows for access to the options platform and now offers
enhancements such as credit controls and a shared order
In addition, CME will offer a variety of pricing incentives
beginning on 1 May for transaction fees on options traded
through Globex. These discounts will run until year end
and vary by product group. Eurodollar option fees for members
will be cut to $0.15, from $0.25, and to $0.25 from $0.55 for
non-members. E-mini S&P 500, Nasdaq 100 and Russell 2000
options fees will be capped at $200 per day for members and
priced at $0.16 for non-members. FX options fees for
non-members will be slashed to $0.25 from $1. And livestock
options fees will be cut to $0.25 from $0.50 for members and to
$0.65 from $1.25 for non-members.