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Dear Robert,
I was at the CME and the CBOT in July and inquired about leasing a seat
for the S&P and the Dow. The CBOT told me that to qualify to buy or
lease a seat, I had to apply to the CBOT for membership. The
application cost was $1000 and would involve my taking a test and being
interviewed, both of which would be held in Chicago a few weeks after my
application was submitted, and the application process would take 4-6
weeks. After I was approved, I then had something like 6 months to
either buy or lease a seat. When I did so, I would then be required to
register the transfer with the CBOT, whose fee was $500 for the
transfer. They told me that they had a list of owners who were offering
seats either for sale or lease (on a monthly basis), but that my
transaction was with the owner, not with the CBOT. In July Dow seats
sold for around $20-25,000 and leased for around $200-250/month. The
CME procedure is comparable. In July, S&P seats sold for [I've
forgotten - something around $200-250,000 as I recall) and leased for
$1500-2000/month. On the side of the floor at the S&P is a glass case
that lists all the S&P seats then for lease, with the owner's names, the
asking price, and the lease term (genrally, 3, 6, or 12 months). One of
the problems, if my understanding is correct, is that the exchange
exacts its $500 transfer charge for every transfer, so if you lease for
3 months and then renew for another 3 months, you pay two transfer fees,
one for each 3 month lease term.
Sincerely,
Richard
Robert W Cummings wrote:
> Anybody know the cost of renting a CME seat for a year.
>
> Robert
>
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