Chicago Board of Trade (CBoT) unveiled a new fee structure for fixed income products that is aimed at making the exchange more competitive with Eurex next year.
The exchange is also trying to use the new pricing model to lure in new members who previously have been prohibited from becoming exchange members.
Exchange officials outlined a simpler fee structure that reduces fees for all market participants last Tuesday, saying it would result in a $60m saving for users. One FCM executive said the new fee structure was welcome news.
"It's amazing what competition will do," the executive said. "The Board of Trade is doing what it needs to but I still believe they will have to find ways to bring expenses down significantly to make up for this revenue shortfall."
Dan said lower fees should...