TO:	ALL CLEARING MEMBERS
FROM:	BUSINESS SYSTEMS GROUP
DATE:	February 22, 2000
SUBJECT:	BOTCC® New Customer Network Fee Schedule

As previously announced in Volume 19-Bulletin#323, BOTCC® has begun implementation of the new customer network. The purpose of this new network is to enhance existing communications between BOTCC and its member firms. Benefits to firms include increased throughput, ability to submit trades via MQM over TCP/IP (Transmission Control Protocol /Internet Protocol), FTP (File Transmission Protocol) capability, and access to BOTCC applications from desktop workstations. This project will permit BOTCC to enhance its infrastructure to provide a wide variety of services to member firms in the future.

BOTCC had originally announced that the new network fees would be flat fees that would be based entirely on circuit location, bandwidth, and number of connections. However, in order to ensure that its member firms are not charged unfairly, BOTCC has revised the manner in which fees will be charged. Fees for the new network are based on an incentive program. As a result of this program, all fixed fees will be waived until July 1, 2000. In addition, any firm that has converted to the new network by July 1, 2000 will receive a 50% rebate of fixed fees for the months of July through October. Listed below are the fees that will be charged for each network connection. These fees are based on circuit location, bandwidth, and total transactions per month.

Monthly Rates Fixed Fee
To Clearing Members:	Rate	Reference Note
Connection through Service Provider – Tier 1	$ 100	1
Connection through Service Provider – Tier 2	$ 500	2
Chicago 128 kb connection	$ 500	3
Chicago 256 kb connection	$ 700	3
Chicago T1.5 connection	$ 1,000	3
Non-Chicago 64 kb connection	$ 700	4
Non-Chicago 128 kb connection	$ 900	4
Non-Chicago 256 kb connection	$ 1,300	4
Non-Chicago 768 kb connection	$ 2,500	4
To others:
Exchanges and Nonmembers	$ 500	5
Variable Fee
To clearing members:
Per Transaction	$ 0.015	6
Monthly Cap	$ 2,500	7

Volume 20 – Bulletin #51 Page 2

Reference Notes:

1) A “Tier 1 Service Provider” is defined as an entity that processes trades for BOTCC clearing members whose total transaction volume for the prior year was less than 500,000 transactions.

2) A “Tier 2 Service Provider” is defined as an entity that processes trades for BOTCC clearing

members whose total transaction volume for the prior year was 500,001 transactions or more.

3) The base fee increases with bandwidth to reflect BOTCC’s higher cost from AT&T.

4) Base fees are higher outside of Chicago to reflect BOTCC’s higher cost.

5) Base fees for nonmembers were set at the lowest rate charged to members for direct connections.

6) The variable fee is set at a rate sufficient to recover BOTCC’s cost. “Transactions” are defined as all matched and unmatched trades. Transactions were chosen as the best available proxy for usage of the network. As technology improves, the Clearing Corporation anticipates changing the basis of measurement.

7) The monthly cap was set at a level to prevent excessive charges for network usage. The Clearing Corporation desires to recover no more than its cost.

Should you have any questions, please call or e-mail one of the following Business Systems Analysts:

Jennifer Campbell	786-5739	Jennifer.campbell@botcc.com
Joe Casebeer	786-5718	Joseph.casebeer@botcc.com
John Compall	786-5795	john.compall@botcc.com
Shawn Gebbia	786-5748	Shawn.gebbia@botcc.com
Marc MacQuarrie	786-5732	Marc.macquarrie@botcc.com
Beth Minnick	786-3804	Beth.minnick@botcc.com
Matt Walsh	786-5731	Matt.walsh@botcc.com
Thomas Andrews	Manager	Thomas.andrews@botcc.com
Diane Schuering	Vice President	Diane.schuering@botcc.com
Business Systems Group E-Mail Address		BSG@botcc.com

BOTCC is a registered trademark of the Board of Trade Clearing Corporation.