CHICAGO Nov 12 CME Group Inc, the largest U.S. futures exchange operator, on Tuesday said it would increase transaction fees for nearly all its major products next year after making investments in resources and technology.
Starting on Jan. 1, CME will raise fees for trading in Treasuries, energy, metals, currencies, and stock-index futures.
The biggest increases await traders who do not own memberships at CME's exchanges, which include the Chicago Mercantile Exchange, Chicago Board of Trade, Nymex and Comex. Even exchange members, whose "seats" and equity stakes in CME give them fee discounts, will have to pay more in some cases as the exchange operator executes its first substantial fee changes since 2009.
"We routinely adjust fees and since our last fee increase, we've made numerous investments in resources and technology enhancements to address the growing infrastructure needs for our customers," CME spokesman Michael Shore said.
CME is expected to keep benefiting from rising trading volumes. In October, CME's total volume averaged 11.1 million contracts per day, up 12 percent from a year earlier. Interest rate volume averaged 4.9 million contracts per day, up 20 percent.
Market speculation over when the U.S. Federal Reserve will exit its bond-buying stimulus program has boosted volume in interest rate futures. CME also has seen signs that volume has benefited from a migration of business into interest-rate futures from the over-the-counter market, Chief Executive Phupinder Gill said on a conference call last week.
For non-members, the exchange fee rate for U.S. Treasury futures traded electronically and Treasury options traded in open outcry pits will increase to 54 cents from 50 cents. Members will pay 6 cents to trade Treasury futures and options starting next year, up a penny.
CME will increase the clearing fee for equity standard futures by 5 cents for non-members and by 2.5 cents for members. Non-members also face a 1 cent increase in the clearing fee for equity standard options.
At Nymex, the day rate for members trading core energy futures, including light sweet crude oil and Henry Hub natural gas, will increase 10 cents to 55 cents.
At Comex, the member day rate on core metals products, including gold, silver and copper futures and options, will jump to 55 cents from 45 cents in open-outcry and electronic markets.
In CBOT grain markets, the exchange fee rate for non-members to trade futures and options will increase by 5 cents to 65 cents per contract in open-outcry pits and by 14 cents to $1.89 in electronic markets.