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Types of Membership

 
 

Overview

CME, CBOT and NYMEX/COMEX memberships are entirely separate from one another and offer access to different products at different rates. These differences reflect the individual histories of each of the exchanges before they became part of CME Group.

For a summary and comparison of firm membership options, see:

CME   |   CBOT   |   NYMEX/COMEX

NYMEX/COMEX Individual Memberships

Description
Individual memberships at NYMEX and COMEX enable the member to trade all NYMEX and COMEX products at member’s rates and to trade directly from the NYMEX trading floor. There is one level of NYMEX individual membership and one level of COMEX individual membership.

Eligibility and Requirements
To be an individual member of NYMEX or COMEX, you must be at an adult and must possess:

  • Good moral character
  • A good reputation
  • Business integrity
  • Adequate financial resources to assume the responsibilities and privileges of membership

If you meet these requirements we welcome your application.

Before you begin trading as a member of NYMEX or COMEX, you must:

  • Be qualified to trade by a clearing member
  • Be registered with the National Futures Association (NFA) as either a floor trader or floor broker before you start trading on the floor

All applicants must satisfy Exchange educational requirements. If you will be accessing the NYMEX trading floor you will be required to attend a new member orientation and pass a Qualifying Examination covering the basics of the commodity industry, and the Rules and Regulations.

You will receive study materials when you submit your application

NYMEX Corporate Membership

Description
NYMEX corporate membership allows member firms to receive preferential Exchange fee and performance bond rates on its proprietary trading of NYMEX products when such proprietary trading activity is conducted in accordance with CME Group’s Fee Policies.

Eligibility and Requirements
NYMEX Rule 106.J. Membership

  • Hedge Funds, commodity pools, banks, futures commission merchants, foreign brokers, broker-dealers, commodity trading advisors, introducing brokers, commercial entities, proprietary trading firms and other corporate entities are eligible for NYMEX Rule 106.J. member firm status.
  • The member firm is required to own or have assigned to it two NYMEX memberships and 30,000 shares of CME Group. If the member firm is also a CME clearing or Rule 106.J. equity member firm or a CBOT clearing or Rule 106.J./106.S. equity member, it must own or have assigned to it 45,000 shares. If the CBOT Rule 106.J. equity member firm has a 8,750 share requirement, the combined share requirement will be 38,750. If the member firm is also a CME clearing or Rule 106.J. equity member firm and CBOT clearing or Rule 106.J./106.S. equity member, it must own or have assigned to it 60,000 shares. If the CBOT Rule 106.J. equity member firm has a 8,750 share requirement, the combined share requirement will be 53,750.
  • One NYMEX membership and one-half of the shares must be owned by the Rule 106.J. member firm, principals or employees of the member firm or a person, including a parent company, with an acceptable proprietary interest in the member firm (i.e. "firm owned"). The remaining NYMEX membership and shares may be independently assigned.
  • The "firm owned" membership may be held by the member firm or a principal or employee of the member firm or person with an acceptable proprietary interest in the member firm. The principal, employee or person with an acceptable proprietary interest must be approved for NYMEX individual membership.
  • The member firm is eligible for preferential Exchange fee rates for its proprietary trading of products (open auction and electronic) on NYMEX products when such trading activity is conducted in accordance with CME Group Fee Policies. The trading activity of parent companies, affiliates, subsidiaries or customers of the member firm are not eligible for preferential Exchange fee rates.
See the links below for more information:

 

 

COMEX Corporate Membership

Description
COMEX corporate membership allows member firms to receive preferential Exchange fee and performance bond rates on its proprietary trading of eligible COMEX products when such proprietary trading activity is conducted in accordance with CME Group’s Fee Policies.

Eligibility and Requirements
COMEX Rule 106.J. Membership

  • Hedge Funds, commodity pools, banks, futures commission merchants, foreign brokers, broker-dealers, commodity trading advisors, introducing brokers, commercial entities, proprietary trading firms and other corporate entities are eligible for COMEX Rule 106.J. member firm status.
  • The member firm is required to own or have assigned to it two COMEX memberships. Shares of CME Group are not required. The member firm is eligible for preferential Exchange rates on products within the division of membership owned or assigned.
  • One COMEX membership must be owned by the Rule 106.J. member firm, principals or employees of the member firm or a person, including a parent company, with an acceptable proprietary interest in the member firm (i.e. "firm owned"). The remaining COMEX membership may be independently assigned.
  • The "firm owned" membership may be held by the member firm, a principal or employee of the member firm or person with an acceptable proprietary interest in the member firm. The principal, employee or person with an acceptable proprietary interest must be approved for COMEX individual membership.
  • The member firm is eligible for preferential Exchange fee rates for its proprietary trading of products (open auction and electronic) within the division of memberships owned or assigned when such trading activity is conducted in accordance with CME Group Fee Policies. The trading activity of parent companies, affiliates, subsidiaries or customers of the member firm are not eligible for preferential Exchange fee rates.
See the links below for more information:

NYMEX Clearing Membership

Description
Clearing members are highly capitalized, closely monitored and carefully selected companies that stand behind all trades made through CME Group’s Exchanges. Clearing members assume full financial and performance responsibility for all transactions executed through them and cleared by CME Clearing. They are responsible and accountable for every position they carry, whether it is for the account of a member, member firm, non-member customer or their own account.

CME Clearing provides clearing services to NYMEX and is a division of CME through which all trades are confirmed, matched and settled on a daily basis until either offset or delivered and through which all financial settlement is made. In every matched transaction executed through CME, CBOT, NYMEX and COMEX, CME Clearing is substituted as the buyer to the seller and the seller to the buyer, with a clearing member assuming the opposite side of each transaction.

CME Clearing conducts business only with its clearing members, not with their customers, individual members or corporate member firms of the Exchange. Customers, members and member firms must have a relationship with a NYMEX clearing member to be able to trade NYMEX products. As the contra-side to every position, CME Clearing is held accountable to clearing members for performance on all open positions. CME Clearing, by monitoring and overseeing its clearing members through its Financial Safeguard System, guarantees performance on each contract to protect both buyers and sellers from financial loss. Additional requirements are imposed on the NYMEX clearing member if it will clear CME ClearPort products.

The clearing member with shares is eligible for preferential Exchange fee rates for its proprietary trading of NYMEX products (open auction and electronic) when such trading activity is conducted in accordance with CME Group Fee Policies. The trading activity of parent companies, affiliates, subsidiaries or customers of the clearing member are not eligible for preferential Exchange fee rates.

Eligibility and Requirements
The requirements for NYMEX/COMEX clearing membership are contained in Chapter 9 of the NYMEX rulebook. To become a clearing member for NYMEX products, the clearing member must

Demonstrate fiscal and moral integrity

  • Have sufficient financial capitalization to justify the risks assumed in clearing trades
  • Be a corporation (including C Corporations, Subchapter S Corporations and Limited Liability Companies), a partnership (including Limited Partnerships and General Partnerships) or a cooperative association
  • Guarantee and assume responsibility for all trading activity routed through it by members it qualifies or by any electronic trading system.

Be a NYMEX member

  • Must own or have assigned to it two NYMEX memberships. One NYMEX membership must be owned by the clearing member or a person, including a parent company, with an acceptable proprietary interest in the clearing member (i.e. "firm owned"). The remaining NYMEX membership may be independently assigned.
  • The "firm owned" memberships may be held by the member firm or a principal or employee of the member firm or person with an acceptable proprietary interest in the member firm. The principal, employee or person with an acceptable proprietary interest must be approved for NYMEX individual membership.

Maintain capital requirements

  • Maintain capital (Adjusted Net Capital for non-Banks and Tier 1 Capital for Banks) at greatest of CFTC or SEC capital requirement or:
    • For non-Banks:
      • $5,000,000 if clearing only exchange-traded futures/options; or,
      • $20,000,000 if clearing exchange-traded futures/options and it will guarantee NYMEX Floor Members pursuant to NYMEX Rule 992; or,
      • $50,000,000 if clearing OTC products.
    • For Banks:
      • $5,000,000,000 if clearing exchange-traded futures/options; or,
      • $50,000,000 if clearing only OTC derivative products.
  • Submit daily segregated, secured 30.7 and sequestered statements through WinJammer system by 12:00 noon on following business day.
  • If non-Bank: Submit monthly Form 1-FRs (for FCM-only firms) or FOCUS reports (for broker-dealers) including Exchange Supplemental Information, through the WinJammer system within 17 business days of month-end
  • If Bank: Submit all financial reports required to be filed with its primary regulator – minimum quarterly basis- filed within 5 days after such statements are filed with it primary banking regulator.
  • If non-Bank: Submit certified financial statements to CME Group’s Audit Department within 60 days of fiscal year-end (for broker-dealers) or 90 days of fiscal year-end (for clearing members which are not registered as broker-dealers)
  • If Bank: Submit certified financial statement within 5 days after such statements are filed with its primary banking regulator.

Deposit a guaranty fund deposit with CME Clearing

  • Deposit must be the greater of the minimum requirement or the clearing member’s proportionate share of the "Aggregate guaranty fund Deposit"

Provide parent guarantees

  • Parent guarantees cover all non-customer proprietary obligations, which include:
    • Performance bond and settlement for non-customer and proprietary positions held and cleared;
    • Non-customer and proprietary trades executed by traders who are qualified by the clearing member, until accepted for clearing by another firm; and
    • Non-customer and proprietary trades executed and processed through give-up systems by the clearing member, until accepted for clearing by another firm.
  • Submit a parent guarantee for any person or entity which owns directly or indirectly five percent or more of the clearing member.
  • Guarantor is liable to CME Clearing for all non-customer and proprietary obligations of the clearing member

Exemptions from the parent guarantee

  • Clearing members may request an exemption from the parent guarantee requirements if:
    • The clearing member maintains $300,000,000 or more in adjusted net capital;
    • The clearing member does not clear, execute and give up, or qualify individual traders who execute non-customer or proprietary trades; or
    • The clearing member meets certain criteria and is determined to have minimal activity in the house origin
See the links below for more information:

 

COMEX Clearing Membership

Description
Clearing members are highly capitalized, closely monitored and carefully selected companies that stand behind all trades made through CME Group’s Exchanges. Clearing members assume full financial and performance responsibility for all transactions executed through them and cleared by CME Clearing. They are responsible and accountable for every position they carry, whether it is for the account of a member, member firm, non-member customer or their own account.

CME Clearing provides clearing services to COMEX and is a division of CME, through which all trades are confirmed, matched and settled on a daily basis until either offset or delivered and through which all financial settlement is made. In every matched transaction executed through CME, CBOT, NYMEX and COMEX, CME Clearing is substituted as the buyer to the seller and the seller to the buyer, with a clearing member assuming the opposite side of each transaction.

CME Clearing conducts business only with its clearing members, not with their customers, individual members or corporate member firms of the Exchange. Customers, members and member firms must have a relationship with a COMEX clearing member to be able to trade COMEX products. As the contra-side to every position, CME Clearing is held accountable to clearing members for performance on all open positions. CME Clearing, by monitoring and overseeing its clearing members through its Financial Safeguard System, guarantees performance on each contract to protect both buyers and sellers from financial loss. Additional requirements are imposed on the COMEX clearing member if it will clear CME ClearPort products.

The clearing member is eligible for preferential Exchange fee rates for its proprietary trading of COMEX products within the division of membership held (open auction and electronic) when such trading activity is conducted in accordance with CME Group Fee Policies. The trading activity of parent companies, affiliates, subsidiaries or customers of the clearing member are not eligible for preferential Exchange fee rates.

Eligibility and Requirements

The requirements for NYMEX/COMEX clearing membership are contained in Chapter 9 of the NYMEX rulebook. To become a clearing member for COMEX products, the clearing member must:

Demonstrates fiscal and moral integrity

  • Have sufficient financial capitalization to justify the risks assumed in clearing trades
  • Be a corporation (including C Corporations, Subchapter S Corporations and Limited Liability Companies), a partnership (including Limited Partnerships and General Partnerships) or a cooperative association
  • Guarantee and assume responsibility for all trading activity routed through it by members it qualifies or by any electronic trading system.

Be a COMEX member

  • Must own or have assigned to it two COMEX memberships.
  • One COMEX membership must be owned by the clearing member or a person, including a parent company, with an acceptable proprietary interest in the clearing member (i.e. "firm owned"). The remaining COMEX membership may be independently assigned.
  • The "firm owned" membership may be held by the member firm or a principal or employee of the member firm or person with an acceptable proprietary interest in the member firm. The principal, employee or person with an acceptable proprietary interest must be approved for COMEX individual membership.

Maintain capital requirements

  • Maintain capital (Adjusted Net Capital for non-Banks and Tier 1 Capital for Banks) at greatest of CFTC or SEC capital requirement or:
    • For non-Banks:
      • $5,000,000 if clearing only exchange-traded futures/options; or,
      • $50,000,000 if clearing OTC products.
    • For Banks:
      • $5,000,000,000 if clearing exchange-traded futures/options; or,
      • $50,000,000 if clearing only OTC derivative products.
  • Submit daily segregated, secured 30.7 and sequestered statements through WinJammer system by 12:00 noon on following business day.
  • If non-Bank: Submit monthly Form 1-FRs (for FCM-only firms) or FOCUS reports (for broker-dealers) including Exchange Supplemental Information, through the WinJammer system within 17 business days of month-end
  • If Bank: Submit all financial reports required to be filed with its primary regulator – minimum quarterly basis- filed within 5 days after such statements are filed with it primary banking regulator.
  • If non-Bank: Submit certified financial statements to CME Group’s Audit Department within 60 days of fiscal year-end (for broker-dealers) or 90 days of fiscal year-end (for clearing members which are not registered as broker-dealers)
    • If Bank: Submit certified financial statement within 5 days after such statements are filed with its primary banking regulator.

Deposit a guaranty fund deposit with CME Clearing

  • Deposit must be the greater of the minimum requirement or the clearing member’s proportionate share of the "Aggregate Guaranty Fund Deposit"

Provide parent guarantees

  • Parent guarantees cover all non-customer proprietary obligations, which include:
    • Performance bond and settlement for non-customer and proprietary positions held and cleared;
    • Non-customer and proprietary trades executed by traders who are qualified by the clearing member, until accepted for clearing by another firm; and
    • Non-customer and proprietary trades executed and processed through give-up systems by the clearing member, until accepted for clearing by another firm.
  • Submit a parent guarantee for any person or entity which owns directly or indirectly five percent or more of the clearing member.
  • Guarantor is liable to CME Clearing for all non-customer and proprietary obligations of the clearing member

Exemptions from the parent guarantee

  • Clearing members may request an exemption from the parent guarantee requirements if:
    • The clearing member maintains $300,000,000 or more in adjusted net capital;
    • The clearing member does not clear, execute and give up, or qualify individual traders who execute non-customer or proprietary trades; or
    • The clearing member meets certain criteria and is determined to have minimal activity in the house origin
See the links below for more information:

Benefits of Membership

One of the leading benefits of COMEX membership is reduced Clearing, GLOBEX, and Exchange fees. Members who own or lease a membership receive a significant savings over retail customers. If you are an active trader, becoming a member will lower your trading costs. The following chart displays three levels of trading with daily, monthly and annual savings of Clearing, GLOBEX and Exchange fees.

Metals

Member Status Round turn Futures contracts traded per day Savings in Exchange Clearing & GLOBEX fees Per Day Savings in Exchange Clearing & GLOBEX fees Per Month Savings in Exchange Clearing & GLOBEX fees Per Year
Own 50 $100 $2,000 $24,000
Own 100 $200 $4,000 $48,000
Own 150 $300 $6,000 $72,000
Lease 50 $88 $1,750 $21,000
Lease 100 $175 $3,500 $42,000
Lease 150 $263 $5,250 $63,000

To calculate your potential savings as an individual member, take the number of round turn contracts you trade per month and multiply by $2 if you were to purchase a COMEX Membership or multiply by $1.75 if you plan to lease a COMEX Membership.

Other benefits of COMEX membership include a lower Performance Bond requirement than non-members and cross divisional rates on some NYMEX contracts for COMEX owners. Initial Performance Bond requirements for COMEX members are lower than the Initial requirement for non-members. Members Initial and Maintenance performance bond requirements are generally the same amount and are generally equal to the hedge margin rate. Cross divisional rates for COMEX Owners are listed on the NYMEX/COMEX fee schedule.

You can review the COMEX fee schedule at the following the Link: http://www.cmegroup.com/company/clearing-fees/index.html

You can see the current Bid, Offer and Last Sale price and current lease prices for COMEX Memberships at the following Link: http://www.cmegroup.com/company/membership/membership-pricing-nymex.html#pricingType=1

The information in the above chart includes the following assumptions: you become a COMEX member, acquire a membership either by purchase or lease, 20 trading days per month, trading is for COMEX futures only on GLOBEX or in the pit, all purchases or sales are offset the same trading day (i.e. day trades), no volume discounts, market maker programs, fee waiver or other incentive schemes are considered.

Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade.

Globex is a trademark of Chicago Mercantile Exchange Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners.

The information within this site has been compiled by CME Group for general purposes only. CME Group assumes no responsibility for any inaccuracy, errors or omissions. Additionally, all examples in this brochure are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. All matters pertaining to rules and specifications herein are made subject to and are superseded by official CME, CBOT and NYMEX rules. Current rules should be consulted in all cases concerning contract specifications.

Copyright ®2010 CME Group Inc. All rights reserved

 

 
 
 
 
 
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