Chicago Mercantile Exchange (CME) has said that it will initiate higher fees, beginning on 1 August, a move that largely pleased investors and annoyed customers.
The fee model will raise clearing fees on all CME stock index, FX, interest rate and commodity contracts. The rate increases for members and lessee members are the first since September 2000.
By raising fees, CME hoped to stem the gradual decline in its revenue rate per contract traded, a major negative about the firm to many analysts. The average rate per contract for this year through April was 65.8 cents, down from 66.8 cents for the first quarter and 70.3 cents in the fourth quarter of 2004.
The rises will...