Remote Eurex/CME-trader, need clearing

[PualoP]

Van Der Moolen have this new thingy specifically for remote traders:

OnlineTrader

 

[hrokling]

That platform looks a bit like Easyscreen at Marex?

 

[Directional]

I understand where your coming from, but you keep asking about clearing etc..?

Rogue,
clearing is an expression used in pro/local circles... i think it dates back to the floor when pit traders would use a clearing house to handle their mark to market accounts at the end of each day.

its a bit of a misnomer since electronic clearing is basically the same as sort of thing provided by any brokerage.

difference is the rates. normally a retail brokerage will be a "front" to a large clearing house, for example, Fortis Bank. So the retail brokerage will be charged a typical retail rates, for example, Tradestation Securities clear through RJO'Brien. TS charge $5 a roundturn, but will probably pay a few cent a lot due to the collective volume they do, presumably many millions of lots a month.

A pro trader who does significant volume - most prop traders will churn many thousands of contracts a month, can get pretty competitive brokerage rates and in many cases can just approach a clearing house directly, rather than bother with a brokerage.

If amado is doing 30,000 lots+ per month, he can go to a firm like Marex or TCA and get rates for "clearing" that are not available to retail traders using a retail brokerage.

Clearing fee's are basically the additional cost over the exchange fee per lot trader.

Additionally, he can get a reduction in exchange fee's, for example, US exchanges currently offer a membership scheme called the european incentive scheme where volume traders, or prop trading groups, can get their exchange fee's down to around 30c a lot, vs the normal non-member fee's of over $1 a lot.

 

[theroguetrader]

Rogue,
clearing is an expression used in pro/local circles... i think it dates back to the floor when pit traders would use a clearing house to handle their mark to market accounts at the end of each day.

its a bit of a misnomer since electronic clearing is basically the same as sort of thing provided by any brokerage.

difference is the rates. normally a retail brokerage will be a "front" to a large clearing house, for example, Fortis Bank. So the retail brokerage will be charged a typical retail rates, for example, Tradestation Securities clear through RJO'Brien. TS charge $5 a roundturn, but will probably pay a few cent a lot due to the collective volume they do, presumably many millions of lots a month.

A pro trader who does significant volume - most prop traders will churn many thousands of contracts a month, can get pretty competitive brokerage rates and in many cases can just approach a clearing house directly, rather than bother with a brokerage.

If amado is doing 30,000 lots+ per month, he can go to a firm like Marex or TCA and get rates for "clearing" that are not available to retail traders using a retail brokerage.

Clearing fee's are basically the additional cost over the exchange fee per lot trader.

Additionally, he can get a reduction in exchange fee's, for example, US exchanges currently offer a membership scheme called the european incentive scheme where volume traders, or prop trading groups, can get their exchange fee's down to around 30c a lot, vs the normal non-member fee's of over $1 a lot.

Thanks for that explanation - i know a bit about locals and clearers, having been one at the LIFFE, but i think you know where i was coming from kinda - on the header he wrote " remote Eurex / CME trader " - he didnt clarify what he meant..? thats why i was confused by the clearing side of things -
Maybe hes getting a bit confused - he might do some vol, but the only way he or his " ltd company " can connect DIRECTLY to the CME for eg, is through a GLOBEX certified front end system - thats why, despite the volumes, hell still have to get an account with a firm or IB WHO IN TURN - has a CME clearing guarantee..!! - and trade through them - !!
well whose gonna guarantee HIS / his Ltd companies trades then..? - or has it all changed now..?

 

[theroguetrader]

Rogue,
clearing is an expression used in pro/local circles... i think it dates back to the floor when pit traders would use a clearing house to handle their mark to market accounts at the end of each day.

its a bit of a misnomer since electronic clearing is basically the same as sort of thing provided by any brokerage.

difference is the rates. normally a retail brokerage will be a "front" to a large clearing house, for example, Fortis Bank. So the retail brokerage will be charged a typical retail rates, for example, Tradestation Securities clear through RJO'Brien. TS charge $5 a roundturn, but will probably pay a few cent a lot due to the collective volume they do, presumably many millions of lots a month.

A pro trader who does significant volume - most prop traders will churn many thousands of contracts a month, can get pretty competitive brokerage rates and in many cases can just approach a clearing house directly, rather than bother with a brokerage.

If amado is doing 30,000 lots+ per month, he can go to a firm like Marex or TCA and get rates for "clearing" that are not available to retail traders using a retail brokerage.

Clearing fee's are basically the additional cost over the exchange fee per lot trader.

Additionally, he can get a reduction in exchange fee's, for example, US exchanges currently offer a membership scheme called the european incentive scheme where volume traders, or prop trading groups, can get their exchange fee's down to around 30c a lot, vs the normal non-member fee's of over $1 a lot.

Actually thats a good one - RJs - theyve been on the street for a LONG time, maybe he should approach them directly ..!! :idea:

 

[amado]

Thanks for that explanation - i know a bit about locals and clearers, having been one at the LIFFE, but i think you know where i was coming from kinda - on the header he wrote " remote Eurex / CME trader " - he didnt clarify what he meant..? thats why i was confused by the clearing side of things -
Maybe hes getting a bit confused - he might do some vol, but the only way he or his " ltd company " can connect DIRECTLY to the CME for eg, is through a GLOBEX certified front end system - thats why, despite the volumes, hell still have to get an account with a firm or IB WHO IN TURN - has a CME clearing guarantee..!! - and trade through them - !!
well whose gonna guarantee HIS / his Ltd companies trades then..? - or has it all changed now..?

Well, the intention has been made clear to you now - are you splitting hairs about terms that are in widespread use?
- X-Trader Pro is a front-end for Globex.
- All trades needs to be cleared, as you well know
- You know, many clearers are not only clearing members
- The "guarantee" is the account size, used for margin. I've never come across anyone asking for a guarantee, it's only a question of leverage.

I'm left wondering if times has passed you by? I definitely feel your little "scheme" here is highly uncalled for and not at all helpful. Btw, my "ltd" is doing fine, thank you very much.

 

[theroguetrader]

Well, the intention has been made clear to you now - are you splitting hairs about terms that are in widespread use?
- X-Trader Pro is a front-end for Globex.
- All trades needs to be cleared, as you well know
- You know, many clearers are not only clearing members
- The "guarantee" is the account size, used for margin. I've never come across anyone asking for a guarantee, it's only a question of leverage.

I'm left wondering if times has passed you by? I definitely feel your little "scheme" here is highly uncalled for and not at all helpful. Btw, my "ltd" is doing fine, thank you very much.

Well you cant connect to Globex directly - so youll have to use an IB front end like X trader to connect to it wont ya..?
also,sorry - on a more general point, i just always thought if a total stranger is going to want to do business with " any " kind of business, the business thay are asking would want some kind of guarantee no..? or has the world of business dramatically changed in the past 2000 odd years..? :-0

As far as the world of Finance is concerned - dont you think the " clearer " is going to want to see/audit your " Ltd companies " books and check YOU OUT to see if your financially sound..? :| - a " leveraged account size " isnt a guarantee is it..?

 

[Directional]

Thanks for that explanation - i know a bit about locals and clearers, having been one at the LIFFE, but i think you know where i was coming from kinda

doh, ok.. sorry, I feel like I was teaching you how to suck eggs now

 

[theroguetrader]

doh, ok.. sorry, I feel like I was teaching you how to suck eggs now

naw, dont be daft... i get most days anyway -

 

[amado]

I'm sure noone wants to go all "Elitetrader" here, but I can't figure out what your problem is. Sounds like you're trying to prove some sort of point without really being able to.

Well you cant connect to Globex directly - so youll have to use an IB front end like X trader to connect to it wont ya..?

Well, I mentioned X-Trader in my original post - so your whole line of argument doesn't really make sense to me. I have never talked about becoming a BD, FCM or exchange member. (Or starting a clearing house for that matter). I don't know why you bring it up - all these questions relating to that were yours.

also,sorry - on a more general point, i just always thought if a total stranger is going to want to do business with " any " kind of business, the business thay are asking would want some kind of guarantee no..? or has the world of business dramatically changed in the past 2000 odd years..? :-0

In your original context it sounded like someone had to assume responsibility for all my trades. A guarantee sounds like a legal agreement to me, if not it would have to mean money - and in the context you used it: someone elses money. Like I couldn't get an account for myself without some mystical entity willing to back me.

As far as the world of Finance is concerned - dont you think the " clearer " is going to want to see/audit your " Ltd companies " books and check YOU OUT to see if your financially sound..? :| - a " leveraged account size " isnt a guarantee is it..?

If by "clearer" you mean the clearer (as in Fortis or Fimat), I am VERY confident they don't want to audit me or see any books. Money talks and getting this type of business is quite competitive. They would however be concerned with money laundering and knowing who exactly they're dealing with, as they're required to. In addition to knowing the client's trading history and market experience of course.

 

[theroguetrader]

I'm sure noone wants to go all "Elitetrader" here, but I can't figure out what your problem is. Sounds like you're trying to prove some sort of point without really being able to.


Well, I mentioned X-Trader in my original post - so your whole line of argument doesn't really make sense to me. I have never talked about becoming a BD, FCM or exchange member. (Or starting a clearing house for that matter). I don't know why you bring it up - all these questions relating to that were yours.


In your original context it sounded like someone had to assume responsibility for all my trades. A guarantee sounds like a legal agreement to me, if not it would have to mean money - and in the context you used it: someone elses money. Like I couldn't get an account for myself without some mystical entity willing to back me.


If by "clearer" you mean the clearer (as in Fortis or Fimat), I am VERY confident they don't want to audit me or see any books. Money talks and getting this type of business is quite competitive. They would however be concerned with money laundering and knowing who exactly they're dealing with, as they're required to. In addition to knowing the client's trading history and market experience of course.

sorry, by " clearer " i just meant of the ones on the CME clearing list ..? why not approach them directly..? there must be 00s of em - i wasnt talking about " anybodys " money - in " any " context - at all... !!
I just said " presumably " a firm you deal with/hope to deal with is of course going to want to go and check you and your company out as standard preliminary " due diligence " .. !! is that not usual practice no..?
Your header on your post said " remote CME trader " - i thought you were a member and had access to Globex yourself - THATS why i was wondering why you were asking about clearing in the first place - because you need a Clearing House Guarantee Agreement for Globex access anyway - (you cant have one without the other so to speak) -

it was the header that was confusing sorry....

 

[amado]

Ah, I see. Nope, not a member and not planning to lease or anything either. Sticking to being "just" a trader