Buying or leasing a seat on the exchange

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tom

Administrator
Staff member
Amy sent this to her Boxcar Trade Alerts subscribers. Martin O'Shield was kind enough to assemble this interesting information. I thought it should be more widely distributed. I hope Amy and Martin don't mind. :)

This is what Martin wrote:
--------------------------------

My apologies for the delay but even though the Chicago Mercantile Exchange merged with the Chicago Board of Trade, (my favorite), and the bought out the Comex, and the New York Mercantile Exchange, then merged them all under the "CME Group" Umbrella, each still requires individual Membership and not all "Clearing Firms" clears all exchanges.

Meaning it gets confusing fast as there isn't a clear "Path", but though you can go to the following Chicago Mercantile Exchange website to deal direct with the "Clearing Firms", it is my experience, like "Retail Trading Brokerage Firms", not all of them are alike: https://www.cmegroup.com/clearing/financial-and-regulatory-surveillance/clearing-firms.html

As you have previously stated to me, your interested in trading "The Indexes/Indices" and the "Indexes" are traded here in Chicago really at 3 Exchanges, but for this email we'll only cover 2:

1. The Chicago Board of Trade

2. Chicago Mercantile Exchange, (The Merk)


Let's start with the Chicago Mercantile Exchange first who has "Levels of Membership" broken down according to the following:


There are four divisions of individual CME memberships representing the four levels of access to CME products.

Chicago Mercantile Exchange (CME) (B1) membership​

Trades: Any CME Exchange-listed contract

*International Monetary Market (IMM) (B2) membership​

Trades: Foreign Exchange, Interest Rate and Equity Index futures, and all IOM and GEM products

*Index and Option Market (IOM) (B3) membership​

Trades: Equity Index futures contracts, random length Lumber contracts, all options contracts, and all GEM products

Growth and Emerging Markets (GEM) (B4) membership​

Trades: Various products including contracts related to emerging market countries; restricted financials


It very inexpensive to "LEASE" versus outright "Buying" but, if you would like to purchase a seat on the CME, the following is the pricing:​

CME Current Membership Prices​

 

Last updated: October 23, 2020 9:31 AM CDT [Chicago Time] | *last updated price​

 

Membership Interest Sales​

    
 

BID

OFFER

LAST SALE

DATE

CME

$300,000

$350,000

$340,000

09/23/20

IMM

$52,500

$61,500

$56,000

10/20/20

IOM

$15,000

*$24,500

$22,000

10/22/20

GEM

$1,000

$1,800

$1,200

10/09/20



You can "Lease" what we call a "Full Seat", (The Equal of 'Owning a Seat' listed above), for prices no Chicagoan has experienced since the 1970s, (it feels):

Chicago Mercantile Exchange, (CME) Full Lease Prices​

Chicago Mercantile Exchange (CME) (B1) membership​

Trades: Any CME Exchange-listed contract

Last updated: October 26, 2020 11:56 AM CDT [Chicago Time]​


CME Division​

Reported Lease Information - New Leases​

   

EFFECTIVE DATE

TERM

LEASE PRICE

NEGOTIATED DATE

08/27/20

3 mo.

$2,500

08/26/20

08/27/20

3 mo.

$2,500

08/26/20

08/04/20

12 mo.

$2,000

08/04/20

08/01/20

6 mo.

$2,200

07/31/20

07/06/20

6 mo.

$2,500

07/06/20

07/01/20

6 mo.

$2,500

06/25/20

07/01/20

6 mo.

$2,500

06/25/20

06/09/20

6 mo.

$2,200

06/09/20

06/01/20

6 mo.

$2,600

05/29/20

06/01/20

3 mo.

$2,200

05/29/20



I recommend is that you LEASE a IMM and/or IOM CME Seat as it allows you to trade both Index Futures & Options Contracts at the lowest prices available to "Members of the Exchange". Yes "Leasing a Seat/Badge" gives you "Membership" privileges.

Chicago Mercantile Exchange IMM Division​

International Monetary Market (IMM) (B2) membership​

Trades: Foreign Exchange, Interest Rate and Equity Index futures, and all IOM and GEM products

Reported Lease Information - New Leases​

   

EFFECTIVE DATE

TERM

LEASE PRICE

NEGOTIATED DATE

10/08/20

3 mo.

$750

10/08/20

09/22/20

3 mo.

$700

09/22/20

08/27/20

6 mo. + 5 days

$600

08/27/20

08/27/20

6 mo. + 5 days

$600

08/27/20

07/31/20

3 mo.

$700

07/31/20

07/31/20

3 mo.

$700

07/31/20

07/01/20

6 mo.

$700

06/30/20

06/01/20

6 mo.

$850

05/17/20

06/01/20

6 mo.

$850

05/17/20

05/11/20

3 mo.

$800

05/08/20



Chicago Mercantile Exchange IOM Division​

Index and Option Market (IOM) (B3) membership​

Trades: Equity Index futures contracts, random length Lumber contracts, all options contracts, and all GEM products

Reported Lease Information - New Leases​

   

EFFECTIVE DATE

TERM

LEASE PRICE

NEGOTIATED DATE

10/06/20

3 mo.

$150

10/06/20

09/14/20

6 mo.

$275

09/14/20

09/01/20

6 mo.

$275

08/31/20

08/24/20

6 mo. + 8 days

$200

08/24/20

08/24/20

6 mo.

$250

08/21/20

08/17/20

6 mo.

$250

08/17/20

08/12/20

6 mo.

$200

08/11/20

08/10/20

6 mo.

$275

08/07/20

08/07/20

6 mo.

$250

08/06/20

07/27/20

3 mo.

$100

07/27/20



That was for the Chicago Mercantile Exchange who merged with the Chicago Board of Trade and this is how the CBOT structures its Membership:

CBOT Individual Membership​

Individual Membership Divisions​

There are five levels of individual CBOT memberships.

Each type determines eligibility for trading certain products at reduced rates and provides access to trading on the CME Group trading floor.

*(B-1) Full Members (FULL)​

Trades: All financial and Agricultural futures and options contracts

*(B-2) Associate Members (AM)​

Trades: All financial futures and options and Agricultural options only

(B-3) Government, Instruments Market (GIM) Members​

Trades: Financial instrument futures

*(B-4) Index, Debt and Energy Market (IDEM) Members​

Trades: Fed Fund and index futures

(B-5) Commodity Options Market (COM) Members​

Trades: Options

For the CBOT, either "Lease" a (B-2) AM Seat/Badge, or at a minimum, a (B-4) IDEM Badge and/or a (B-1) FULL Seat Badge


Chicago Board of Trade Lease Prices​

Membership (W/out Stock) Lease Prices with Corresponding Sales Prices as of 10/26/2020​

B-1 (Full)

Leases Available 14

B-2 (AM)

Leases Available 46

B-3 (GIM)

Leases Available 6

B-4 (IDEM)

Leases Available 46

B-5 (COM)

Leases Available 51

2@$566.27​

--

--

--

--

Month-end Rental Dollar Amount (as of 09/30/20)​

$566.27

$276.44

$210.00

$20.00

$50.00

Last 3 Membership Sales

    

$178,000 - 10/22/20

$43,000 - 08/21/20

$20,000 - 03/02/20

$1,200 - 10/23/20

$4,000 - 08/11/20

$171,000 - 10/08/20

$44,000 - 08/13/20

$23,500 - 01/22/19

$2,400 - 06/19/20

$4,000 - 07/08/20

$175,000 - 10/02/20

$40,000 - 07/31/20

$40,000 - 12/07/17

$2,000 - 06/18/20

$3,000 - 03/18/20


You can trust but verify all of the above here, but I just wanted to explain it before you looked at it:

https://www.cmegroup.com/company/membership/individual/
 

AndrewS

Member
You would need to do some serious volume to justify the expenses. Besides the lease payments or purchase price there is a $2,000 application fee. Once you become a member you also will lose your nonprofessional status with data fees.
 

MartinO

New member
You would need to do some serious volume to justify the expenses. Besides the lease payments or purchase price there is a $2,000 application fee. Once you become a member you also will lose your nonprofessional status with data fees.
AndrewS,


What you've stated isn't true as it all depends upon your relationship with your Clearing Firm and as you can see below, your "Non-Professional Data Feed Fees" all becomes a "Tax Writeoff" along with your "Losses" as its "Ordinary Income" according to the IRS as you'll be considered a entity doing "Trading as a Business" :)

Trading_As_A_Business_IRS_Tax_Deductionable.png
Once you either Lease/Purchase a "Seat" on the Chicago Board of Trade/Chicago Mercantile Exchange, you do NOT pay "Subscriber Fees" on a "NON-Professional" basis and can WRITE OFF ALL LOSSES and "Cost of Doing Business" as a "Professional Trader".

Trading_As_A_Business_IRS_Tax_Filing.png

So if you "Trade" any of the above Chicago Commodity Exchange "Products" and win/lose, depending upon your particular situation, all of it could be declared "Ordinary" income on your IRS Tax forms:

Trading_As_A_Business_IRS_Tax_Forms.png


You can "Trust but Verify" by watching this video Taxes for Traders 2020

And the slides pictured above are located here TastyTrade Presentation Slides: Taxes for Traders 2020



I'm the one who emailed the above information to both Amy Meissner and Tom Nunamaker, but shall be providing more information shortly.


You can get deals such as:

1. No Commissions, just open an account with X dollar amount

2. You'll never pay "Retail Commissions" + "Retail Exchange Fees"

3. Direct connectivity to the Clearing Firms Servers at the Chicago Commodity Exchanges Data Center for better/faster fills

4. You really cant compare what a Clearing Firm can do for you versus a "Retail Brokerage"


For my 1st 30 days of trading, I've paid over $600 in Commissions & over $500 in "Exchange Fees".


For that pricing I could have leased a FULL SEAT on the Chicago Board of Trade for easily 3 months, with commissions of around .10 cents


YUP!


I'll post more later.

Sincerely,



Martin
 
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Marcas

Active member
Very interesting information. To bad it is not well known to retail traders who pay through the nose, at least I didn't hear about this option so far.
Thanks a lot.
 

MartinO

New member
Very interesting information. To bad it is not well known to retail traders who pay through the nose, at least I didn't hear about this option so far.
Thanks a lot.
Marcus,


That's why I posted the information as it was through Aeromir I learned about the "Issues" TD Ameritrade's Think or Swim was having.

Then I started using TastyTrade's Platform and have experienced "Glitches" any/all "Brokerage Platforms" incur.


Upon doing some trading and seeing my account go down, I contacted them and asked how their commissions were being paid by me, and they explained its embedded directly within each of your "Trades". But when I tallied up what I was paying, then did a cursory search of Seat Leases, there is no comparison many "Retail Traders" have been paying paying paying when they could be saving / utilizing those "Retail Fees" for "MORE ACTUAL TRADING" if you become a member of a Commodity Exchange :)

That's whats next for me as I'd like to "Try" this "Professionally" for at least a year and besides, all the Commodity Exchanges are located essentially down the street from me :cool:

Sincerely,



Martin
 
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Marcas

Active member
Yes, buying a seat seems to be a good approach.
I'm interested but before anything I need to do my own search as applying for a seat may bring some unpleasant and irrevocable consequences. I do not know. I only guess/suspect that there could be some member's duties/obligations or tax consequences including need for accountant specializing in this stuff, etc.
 

MartinO

New member
Yes, buying a seat seems to be a good approach.
I'm interested but before anything I need to do my own search as applying for a seat may bring some unpleasant and irrevocable consequences. I do not know. I only guess/suspect that there could be some member's duties/obligations or tax consequences including need for accountant specializing in this stuff, etc.
Marcas,


I've provided the URL for the Chicago Mercantile Exchange's membership, and yes, if you watch the video I posted, you can use your local Accountant of forever years, and they would only wind up contacting an accountant here in Chicago, land of the Commodity Exchanges, to instruct them on how to "Elect for Mark to Market" Tax Accounting:

IRS_Form_475_Trading_As_A_Business.png

IRS 429 Traders in Securities Information for Form 1040 or 1040-SR Filers


You could quickly run through this IRS Form 475 Form that will help YOU determine if you qualify:


Frequently Asked Questions for I.R.C. § 475

Remember, its not enough to just claim yourself a "Trader Trading as a Business" as your "Trading" must be deemed "Substantial" with your activity being "Consistent" with "Regularity".

When I hear the word "Regularity" in the eyes of the IRS, I think it means "Daily" and thats what my 2nd Trading Account is for :cool:

FullSizeR.jpg

I was a "Lab Tech" to one of the Co-Founders of TD Ameritrade's Think or Swim, Charles Cottle, where we both worked for Anthony Saliba's International Trading Institute that trained you how to be a "Options Market Maker" and one of the Golden Rules is:


"Staying Spread is staying alive"! Its works :)


I suggest you watch the video, and contact your brokerage firm to provide you the appropriate Tax paperwork for filling correctly.

Watch both the video and read through the slides I've posted as your concerns were addressed in both.


Sincerely,



Martin
 
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MartinO

New member
AndrewS replied to a thread you are watching at Aeromir Discussion Forums.


Buying or leasing a seat on the exchange



Please read section 11: https://www.cmegroup.com/market-data/distributor/files/non-professional-subscribers-faq.pdf

AndrewS, as I've indicated above, "Subscription Fees" are Tax Write-Off-able when your "Trading as a Business" and Clearing Firms can provide you your "Data Feeds" for free.


Also, on TastyTrade, you can subscribe to their "The Smalls Exchange Data Feed" whether your a "Professional" or "Non-Professional" and everybody, for the time being, can pay the exact same pricing!

https://subscribers.thesmallexchange.com/

Again, its all dependent upon your relationship with your Clearing Firm as there isn't ONLY one particular way!

:)

Sincerely,



Martin
 
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AndrewS

Member
There are two different things being discussed here. Trader tax status and being an exchange member. If you do enough volume then owning or leasing a seat on the exchange where you do that volume will reduce your fees. However owning or leasing a seat does not automatically give you trader tax status with the IRS. To have that you need to meet their requirements of transaction volume, frequency and income contribution.
 

MartinO

New member
There are two different things being discussed here. Trader tax status and being an exchange member. If you do enough volume then owning or leasing a seat on the exchange where you do that volume will reduce your fees. However owning or leasing a seat does not automatically give you trader tax status with the IRS. To have that you need to meet their requirements of transaction volume, frequency and income contribution.


AndrewS, this is partially correct because once you either lease/purchase a seat, the Clearing Firm can offer you discounts on anything they clear, so your NOT limited to *ONLY* trading on a "particular" exchange.

Its really up to the relationship you establish with the Clearing Firm and some of them would rather have a "Certain Size" account where they can either offer you "Unlimited Trades Commission Free if you maintain a balance of X" or "Dirt Cheap" commissions.

When it comes to Introducing Brokers, (what TastyTrade is), and/or a Futures Commission Merchant, they all need to get "Cleared" through a "Clearing Firm" who can "Move Mountains" and rival any/all "Brokerage Fees" as part of your negotiation.

There is no 1 clear path to doing this.

Sincerely,



Martin
 
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AndrewS

Member
When you talk about buying or leasing a seat you are pretty much talking about the CME Group which means futures and futures options. Equity exchanges and other futures exchanges either do not have seats or it is impractical to lease or buy a seat. The only thing a seat on any CME Group exchange does is give you reduced exchange fees on any products traded on that particular exchange. Anything else you talk about does not require having a seat. You can negotiate any deal with any broker, you can trade as a business, if you qualify you can have Trader tax status with the IRS but none of these require owning or leasing a seat.
 

MartinO

New member
When you talk about buying or leasing a seat you are pretty much talking about the CME Group which means futures and futures options. Equity exchanges and other futures exchanges either do not have seats or it is impractical to lease or buy a seat. The only thing a seat on any CME Group exchange does is give you reduced exchange fees on any products traded on that particular exchange. Anything else you talk about does not require having a seat. You can negotiate any deal with any broker, you can trade as a business, if you qualify you can have Trader tax status with the IRS but none of these require owning or leasing a seat.

AndrewS,


Its all entirely true what your stating, BUT when you either "Lease" and/or "Purchase a Seat", the "Clearing Firm" can give you better deals than "Any Broker" as you've mentioned. And by definition of you/anyone obtaining a "Seat", it removes any subjective IRS Questioning whether or not your "Trading as a Business".

The IRS Building here in Chicago is across the street from the Chicago Board of Trade.

The best place to "Strike a Deal" is with the Clearing firm.

I can post the difference in what a "Discounted Retail Brokerage" charges, in my 1st account, versus my 2nd trading account which is directly held with a Clearing Firm.

Just let me know and I'll post it here.

It's a Night and Day difference!

Sincerely,


Martin
 
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MartinO

New member
AndrewS,



Here is a recent picture of my 2nd trading account, which trades exclusively Option Spreads, directly from a colocated computer server located at NY4 as featured in this 60 minutes documentary on:




... and as you can see AndrewS, I pay ZERO "Exchange Fees" at a maximum "Commission Rate" that is 1/2 what "Any Broker" currently offers, I.E., TastyTrade, TD Ameritrade Think or Swim, ETrade, Schwab, etc., etc:


A_REAL_Example_of_a_Clearing_Firm_NO_Exchange_Fees.jpg


Though I don't have a "Seat" on any Commodities Exchange, but established a direct relationship with a Clearing Firm
started by Proprietary Options Market Makers Peak6's Apex Clearing, I pay less:​


Peak6_Options_Market_Makers.png



Overall, I'd like to utilize what Charles Cottle, (The Risk Doctor), Shelly Brown, taught us "Lab Techs" back in the International Trading Institute days at the CBOE regarding "Relative Options Pricing Market Making", automate it on a server, colocate it at the local Chicago Commodity Exchanges Data Centers, and utilize, for example and JUST an example, the Apex Clearing Automated Trading approval I've been granted.

Yes "Relative Options Pricing" still works, its just you need to do it at the Sub-Nano-second level!

If "Seat leases/purchase prices" on either the Chicago Mercantile Exchange and the Chicago Board of Trade, though they've merged, you still have to apply "Separately" on each, weren't at Fast Food Price levels, then yes "Retail Trading" would be "A Deal".


Other than that, having a direct relationship with a Clearing Firm, is whom can offer you the BEST DEALS!


Sincerely,



Martin
 
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RandyR

New member
Martin, thanks for posting all this info.

Am I reading your posted statement incorrectly? It's a bit small, but what I believe I see is that you pay $.71/contract commission plus a Tran Fee.

That is more than anyone currently pays at TD Ameritrade. Current rate is $.65/contract plus an exchange fee which is less than $.02/contract for equity options.

Am I missing something?

Randy
 

MartinO

New member
Martin, thanks for posting all this info.

Am I reading your posted statement incorrectly? It's a bit small, but what I believe I see is that you pay $.71/contract commission plus a Tran Fee.

That is more than anyone currently pays at TD Ameritrade. Current rate is $.65/contract plus an exchange fee which is less than $.02/contract for equity options.

Am I missing something?


RandyR,



Yes as your missing the following: Yourself and others here either aren't aware your paying WAY MORE or aren't admitting it in public.

(Read my posts proving it impossible for you to "Think" your paying what you "Think" your paying)


1. TD Ameritrade Think or Swim, is a Brokerage firm, who, as you've stated correctly, charges $.65/ per contract Plus an exchange fee less than $.02/contract for equity options, .... BUT you must meet Pattern Day Trading Criteria which limits you to just 4 trades in a week


"If you execute four or more intraday round trips within five rolling business days and your margin account value is less than $25,000, you’ve inadvertently violated the pattern day trader rule.
Now your account is flagged. Oops!"


What Is a Pattern Day Trader?

You are a pattern day trader if you make four or more day trades
(as described above) in a rolling five business day period

TD Ameritrade's Policy on 4 or more Trades within a 5 day period =
We Want More Money from YOU!


2. Since I have a direct relationship with the Clearing Firm, "Pattern Day Trader" rules doesn't apply to my account which "allows me to trade more than the limitations of a Retail Trader Account" is allowed. 😉


3. TD Ameritrade Think or Swim, a brokerage firm, can't offer "Retail Traders" Automated High Frequency Trading that a Clearing Firm can because brokerage Firms doesn't "Clear Trades".


That's the clear difference for beginners.



Sincerely,



Martin
 
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Tb2018

Member
Martin,

thanks for the info you shared with us here......but when you stated :QUOTE
.. and as you can see AndrewS, I pay ZERO "Exchange Fees" at a maximum "Commission Rate" that is 1/2 what "Any Broker" currently offers, I.E., TastyTrade, TD Ameritrade Think or Swim, ETrade, Schwab, etc., etc:

UNQUOTE;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

all the good work you did was cancelled in less than a nanosec.....when was showed that the commissions are 0.71 (TD ..and others around 0.65),(assuming that you don't have any hidden agenda promoting the firm you mentioned!)I thank you anyway for the info provided ..but I suggest to you and the people following this post to stick with the conventional (retail )way PAY THE CURRENT COMMISSIONS ,Frequent trade with more than 25K in their ACCOUNT(Pattern Day trader limit)...and most of all Don't use any High frequency strategy ..on Options trades or else when on the other side you have dedicated Market Makers.

Happy Trading

Tom
 

MartinO

New member
Martin,

thanks for the info you shared with us here......but when you stated :QUOTE
.. and as you can see AndrewS, I pay ZERO "Exchange Fees" at a maximum "Commission Rate" that is 1/2 what "Any Broker" currently offers, I.E., TastyTrade, TD Ameritrade Think or Swim, ETrade, Schwab, etc., etc:

UNQUOTE;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

all the good work you did was cancelled in less than a nanosec.....when was showed that the commissions are 0.71 (TD ..and others around 0.65),(assuming that you don't have any hidden agenda promoting the firm you mentioned!)I thank you anyway for the info provided ..but I suggest to you and the people following this post to stick with the conventional (retail )way PAY THE CURRENT COMMISSIONS ,Frequent trade with more than 25K in their ACCOUNT(Pattern Day trader limit)...and most of all Don't use any High frequency strategy ..on Options trades or else when on the other side you have dedicated Market Makers.

Happy Trading

Tom

Tb2018,
RandyR,
AndrewS,



TD Ameritrade, a "Discount Brokerage for Retail Traders" charges MORE money than "Retail Traders" either realize, and/or
publicly acknowledge:




***3. This fee is assessed at a rate consistent with Section 1 of Schedule A of FINRA’s By-Laws for trading activity.


Current rates are: $0.000119 per share for each sale of a covered equity security,
with a maximum charge of $5.95 per trade;

$0.002 per contract for each sale of an option; $0.00075 per bond for each sale of a covered TRACE-Eligible Security (other than an Asset-Backed Security) and/or municipal security,

with a maximum charge of $0.75 per trade;

$0.00000075 times the value, as reported to TRACE, of a sale of an Asset-Backed Security,
with a maximum charge of $0.75 per trade.






*** Read Below as to TD Ameritrade's "Fees"

"Discount Brokerage Firm" TD Ameritrade charges a "Trading Activity Fee", and because I don't have a TD Ameritrade Account,
looking at all the "Fees" that are being paid by "Retail Traders".... substantiates Tom Numaker's initiative in posting my email to him
and Ms. Amy Meissner.

Tb2018, that's correct, yourself and others are confusing the "Transaction Fee" for what is known as a


***Option Regulatory Fee, ORF, collected by the CLEARING MEMBER FIRMs
payable to
the OPTIONS CLEARING CORPORATION WHO CLEARS
AND GUARANTEES ALL TRADES:


A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change

1. Purpose: The Exchange proposes to reduce the Options Regulatory Fee (“ORF”) from $0.0045 per contract to $0.0023 per contract, effective August 3, 2020, in order to help ensure that revenue collected from the ORF, in combination with other regulatory fees and fines, does not exceed the Exchange’s total regulatory costs.

2. The ORF is assessed by Cboe Options to each Trading Permit Holder (“TPH”) for options transactions cleared by the TPH that are cleared by the Options Clearing Corporation (“OCC”) in the customer range, regardless of the exchange on which the transaction occurs.

***3. In other words, the Exchange imposes the ORF on all customer-range transactions cleared by a TPH, even if the transactions do not take place on the Exchange.
The ORF is collected by OCC on behalf of the Exchange from the Clearing Trading Permit Holder (“CTPH”) or non-CTPH that ultimately clears the transaction.


And AndrewS, and RandyR mentioned TD Ameritrade I believe, it's 4:54am here in Chicago, but all TD Ameritrade customers pay the fee too, "after so many trades at a blended rate" + "Trading Activity Fees" =
"Retail Traders" are paying M O R E than they either are thinking and/or admitting to themselves:


‡‡ Regulatory fees are paid by TD Ameritrade and charged to client accounts
and are subject to change without notice.



Page 4 of 4 TDA 4075 F 09/20TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2020 TD Ameritrade.


1. Applies to certain sell transactions, assessed at a rate consistent with Section 31 of the Securities Exchange Act of 1934. TD Ameritrade remits these fees to certain self-regulatory organizations and national securities exchanges, which in turn make payment to the SEC. These fees are intended to cover the costs incurred by the government, including the SEC, for supervising and regulating the securities markets and securities professionals. The rate is subject to annual and mid-year adjustments which may not be immediately known to TD Ameritrade; as a result, the fee assessed may differ from or exceed the actual amount of the fee applicable to your transaction. Any excess may be retained by TD Ameritrade. Fees are rounded to the nearest penny.

2 This fee varies by options exchange, where an options trade executes, and whether the broker responsible for the trade is a member of a particular exchange. As a result, TD Ameritrade calculates a blended rate that equals or slightly exceeds the amount it is required to remit to the options exchanges.


***3. This fee is assessed at a rate consistent with Section 1 of
Schedule A of FINRA’s By-Laws for trading activity.


Current rates are: $0.000119 per share for each sale of a covered equity security,
with a maximum charge of $5.95 per trade;


$0.002 per contract for each sale of an option; $0.00075 per bond for each sale of a covered TRACE-Eligible Security (other than an Asset-Backed Security) and/or municipal security, with a maximum charge of $0.75 per trade;

$0.00000075 times the value, as reported to TRACE, of a sale of an Asset-Backed Security, with a maximum charge of $0.75 per trade.

TD Ameritrade Fees are rounded to the nearest penny






Once you look through all the fees they charge, and CAN CHARGE, ....
I needn't say anything more!


TD Ameritrade Standard Retail Pricing: Commissions, Rates, and Fees







Again I posted my "Clearing Firm" daily account in good faith, can anybody post their TD Ameritrade Account Statement so we can see all the fees as they mention in their own documentation at THEIR above links I've posted, in case you wanna "Trust but Verify" ?

While I have heard of "In-Activity Fees', Tom questioning the "Fee" lead me to all the "Fees" these "Discount Retail Traders" seemingly don't know, or wont publicly acknowledge. I don't have a TD Ameritrade Account so I can't "Trust but Verify".

Its 5:32am here in Chicago so Good night/Morning and have a great day as you post your account statement showing the "Commissions + Exchange Fees + Transaction Activity Fees".


So far, all the replies, depending upon your intent, substantiates either "Leasing and/or Purchasing" a Seat!


:)


Sincerely,



Martin
 
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MartinO

New member
AndrewS,



Just because I've flawlessly proven yourself, and others INCORRECT in your assumptions that "I'm at a Discount Brokerage Firm"
when you've not been aware even what YOU'VE been promoting has been WAY MORE EXPENSIVE than your posts fail at proving.


It isn't a "AD" for Peak6 as all I originally did was send out a "Private Email" the Admin of this Forum thought was so good, he posted it here to make yourself, and everyone else aware that "Seats on the Exchange" are cheaper than the "Retail Discounts" you THINK" you receive.


Peak6 you "CANT CLEAR" through them unless your an employee which I am not.



I've YET to introduce the 2 "Clearing Firms" to the Admin and 1 other person on this forum but your welcome to continue using whatever
"Discount Broker" you think is offering you "Discounts".




We've discovered A LOT about people here in their replies didn't we?


I'm the one doing everyone here the favor and not the other way around!


Sincerely,



Martin
 
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