CME Group updates market data fees

Joint release from CME Group and NIBA

In November, 2013, the CME Group announced changes to market data license agreements and schedules. The resulting increase in user fees significantly affect all NIBA members.

NIBA members voiced several concerns surrounding the changes and the Executive Board of Directors presented them to the exchange. On Feb. 14, 2014, the CME Group released an update to the market data policies. One of our major issues has been addressed: the definition of non-professional.

Non-professionals are now defined to include certain small business entities such as LLC, trusts, etc., that are: (i) not affiliated with a Professional, and (ii) whose primary business purpose is not trading. There is also a limit in the number of trading terminals allowed to be used at the entity to qualify as a non-professional. This definition is important because so many IB customers are organized as LLCs, trusts or other legal entities, all of which seemed to have been included in the CME's prior definition of professional.

Some of the CME Group's market data policy changes take effect as soon as March 1, 2014. We urge you to check the exchange website or contact your account manager for more information. The CME U.S. Market Data Team can be reached at marketdata@cmegroup.com.

Below is the text of an update regarding the CME Group data fees policy released February 13, 2014.

CME Group Market Data Policies Statement, Feb. 13

As an update to the notice sent November 12, 2013, we are announcing the following changes and clarifications to your market data license agreement and schedules. After further conversation with our distributors and customers, these changes are designed to ease the transition to our new market data policies. We have broadened the definition of a “Non-Professional” subscriber, provided additional clarity and some reduced price points around individual non-display usage, and created a process for grandfathered users to switch data/trading providers and maintain their status.

For existing Distributors, the following policies will be effective March 1, 2014.

Market Data Non-Professional Policy - We introduced a Market Data Non-Professional Policy, whereby a reduced rate is offered for subscribers who qualify. Pursuant to Section 12.3 of the Market Data Agreement this notice shall modify and amend the Market Data Policies, Schedule 4 Section 17 and Exhibit A to Schedule 4. The following language will be added to Non Professional definition:

Non-Professional may also include certain small business entities (limited liability companies, partnerships, trusts or corporations that are not affiliated with any entity that may be considered a Professional) whose primary business purpose is not trading and such entity must have no more than two trading terminals per Distributor per Subscriber entity (or its affiliates’) name.

A Non-Professional Subscriber must have an active futures trading account and must be viewing the data on a device capable of routing orders to Globex.

Market Data Non-Display Policy – We introduced a non-display policy, which applies to anyone accessing, processing or consuming CME Group market data for a purpose other than in support of its display or distribution. Pursuant to Section 12.3 of the Market Data Agreement this notice shall modify and amend the Market Data Policies, Schedule 4, Section 16 and Schedule 5: Fee Schedule. The following licenses and clarifications have been added for API/datafeed/open access to market data for Category A: Automated Trading System:

  • User Non-Display License –We will be introducing a reduced rate to a Distributor that is a single user (for avoidance of doubt, this does not include a single user at a firm, but rather a single user subscriber) of non-display market data for purposes of automated trading when market data is received directly from CME Group or through an uncontrolled feed through a third party. The existing Sub-Vendor Access fee and new Category A: Automated Trading System License fee have been combined at a rate of $375 monthly/exchange. The user is required to complete a Market Data License with CME Group and remit license fees to CME directly.
  • Managed User Non-Display – We will be introducing a reduced rate to a subscriber that is a single user (for avoidance of doubt, this does not include a single user at a firm, but rather a single user subscriber) of non-display market data for purposes of automated trading when they receive market data controlled through a third party provider. The provider of market data is required to have the single user complete a subscriber agreement, report Managed User Non-Display to CME, bill user reduced rate of $170/monthly/exchange and remit back to CME.

To further clarify Category A: Automated Trading System end users who have access to real time information and to functionality provided by the Distributor via their software to use data for automated trading (such as an autospreader) or where the user is provided tools to create their own automated strategy, are liable for real time Subscriber fees only. Access to the display of Information and to the tools for automated trading must be controlled by the data provider, at a user/device ID level. 

Schedule 4 to the MDLA has been updated with the above changes and is available from www.cmegroup.com/mdla.

Market Data Trading Waiver Elimination –We have outlined the process below for Subscribers who migrate between Distributors after March 1st, 2014 through December 31st, 2015.

Subscribers who are grandfathered under the waiver, who migrate from their current trading terminal to a new Distributor after March 1st, 2014, may qualify to keep their grandfathered status. The new Distributor must complete the Trading Waiver Subscriber Migration Request form (PDF) and submit to CME in order to maintain the Subscribers’ grandfathered status through December 2014 and a reduced rate in 2015. CME reserves the right to determine if the Subscriber will keep their grandfathered status.

Existing Distributors will need to maintain their Subscriber base to identify those grandfathered into the waiver versus new migrated Subscribers. The Distributor will need to report these migrated users under the same reporting code as the grandfathered users.

For avoidance of doubt, any existing fee-liable Subscriber may not move to the waiver under the above outlined migration process after March 1, 2014. The provider must ensure that a Subscriber was not previously fee-liable under the provider’s service within a 12 month period.

For more information on policies outlined above, please visit our website FAQ or www.cmegroup.com/mdla.

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