BrokerTec out of the Gates. (Rebates or Kickbacks?)
The moment the floor staff of the Chicago Board of Trade (CBOT) (CME) has been dreading for years is now here: BrokerTec's futures trading platform kicked in at the end of November, along with a Reuters report that the consortium expects to grab 30% of Chicago's U.S. Treasury debt volume within the next 12 months, and 70% in 24 months.
Citing a confidential offering statement for BrokerTec Futures Exchange's Class B shares, the report claims BrokerTec's low fee structure would leave the capital-intense CME and CBOT in the dust. A spokesman declined to comment, citing the confidential nature of the offering.
While the consortium's average of 4,000 trades per day may …
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Publication information: Article title: BrokerTec out of the Gates. (Rebates or Kickbacks?). Contributors: Not available. Magazine title: Futures (Cedar Falls, IA). Volume: 31. Issue: 3 Publication date: February 2002. Page number: 12. © 2009 Summit Business Media. COPYRIGHT 2002 Gale Group.