CME Group Inc. has raised trading fees at its futures markets, just as a competitor exchange prepares to open its doors.
The fee changes, described in an 11-page notice on CMEs website, reduce prices on some products and raise them on others. Overall, the changes will result in a minimal increase in revenues/overall rate per contract, a CME spokesman said. The changes go into effect Aug. 1.
CMEs announcement just before rival ELX Futures L.P.s planned late-June launch underscores its dominance in the futures-trading world and contrasts sharply with the strategy of a predecessor in dealing with a similar upstart just five years ago.
In 2004, the Chicago Board of Trade bought by CME last year cut fees on some products to zero, days before Eurex US was to begin offering trading in Treasury futures. Traders credit the move with preventing the exchange from gaining a foothold.
Since those days, CME has grown significantly, swallowing up not only the CBOT but also the New York Mercantile Exchange, whose fees, already higher than the average fees at CME and the CBOT, wont change under the new fee schedule. CMEs three exchanges now handle more than 90% of U.S. futures trading.