Re: $25K "Deposit" for Globex Terminal???

[editorial@xxxxxxxxxxxxx]

GLOBEX Q & A:

Are you using your own Globex terminal now?

What is the terminal, physically?  An old-style IBM-type terminal with a green screen, quotes, and the order book?  Or is it a PC?

You can have this terminal anywhere (at your office, at home, etc.) right?  So how does it get quotes?  What's the data feed?

It is my understanding that there are some Globex terminals running some sort of software that is placing trades fully automatically, based on preprogrammed criteria.  Can anyone confirm this?








 ---- you wrote: 
> Dear Group,
> 
> I read a claim on this newsgroup a day or two ago that one of the requirements for obtaining a Globex terminal was a $25K deposit to the CME.  Not so.  I have the application for a Globex terminal, and a summary of its
> requirements are available on the CME's website at http://www.cme.com/globex2/eth.html as follows:
> 
> Details
>                     Limited number of permits available -- act promptly.
>                     No CME membership purchase/lease needed.
>                     Initial $1,500 permit application fee.
>                     Minimum net capital requirement: $25,000 held at a clearing firm.
>                     Permits are non-transferrable and valid for one year.
> 
> The "$25K deposit" is neither to the CME nor for the terminal --- it is simply a deposit to the applicant's chosen clearing firm, the firm who guarantees the applicant's trades to the CME --- in other words, a minimum $25K
> trading account.
> 
> On another matter that has also been mentioned recently on this newsgroup, namely, commissions for members: as regards trading with a Globex terminal, the CME does not require a person to be a member in order to obtain or
> trade with a Globex terminal (technically, one must acquire an ETH Permit, "Electronic Trading Hours" Permit).  In my investigation towards acquiring an ETH Permit and a Globex terminal, I spoke with one firm who told me that
> if I obtained a Globex terminal, they would clear my trades using it for a roundturn, all-inclusive, commission rate of $5 with a reduction from that for size.
> 
> Sincerely,
> 
> Richard
>