ELX to undercut rival CME Group on fees

CHICAGO, May 17 (BestGrowthStock) – ELX Futures LP, a Wall
Street-backed futures challenger to CME Group Inc (CME.O: ), said
on Monday it will charge less than its larger rival for bets on
short-term U.S. interest rates.

ELX, which has offered Treasury futures since its start
last June, will begin offering Eurodollar futures on June 18,
charging 35 cents a contract for low-volume traders and 18
cents a contract for those trading more than 1,200 contracts a
day, it said in a statement.

CME Group, the world’s largest futures exchange and home to
the dominant market for the contracts, charges from 9 cents to
64 cents per contract, with discounts for high-volume users,
according to a fee schedule posted on the exchange’s website.

Trading of interest-rate futures is set to surge as
investors bet on when the U.S. Federal Reserve may lift its
benchmark interest rate target from its current near-zero
level. ELX wants to tap into that rising demand by offering a
cut-rate alternative to CME Group.

Eurodollars allow investors to bet on or hedge against
changes in three-month U.S. borrowing rates. CME handles about
2.4 million Eurodollar futures contracts a day.

ELX, backed by Goldman Sachs Group Inc (GS.N: ), JPMorgan
Chase & Co (JPM.N: ), is the most recent in a long line of
challengers to the Chicago Board of Trade and the Chicago
Mercantile Exchange, both owned by CME Group.

Exchange operator NYSE Euronext (NYX.N: ) is also planning to
go head to head against CME Group by offering Treasury and
Eurodollar futures in the third quarter.

The Chicago exchanges have successfully battled new
entrants, sometimes with fee cuts of their own, to maintain
their near monopolies.

Stock Trading

(Reporting by Ann Saphir; Editing by Dan Grebler)

ELX to undercut rival CME Group on fees