VOLUME 20 - BULLETIN #184
TO:
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ALL CLEARING MEMBERS
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FROM:
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BUSINESS SYSTEMS GROUP
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DATE:
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June 23, 2000
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SUBJECT:
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BOTCC® New Customer Network Fee Schedule
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As previously announced in Volume 20-Bulletin#125, the new customer network will be implemented on September 1, 2000. 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. Please see Volume 20 Bulletin #166 for details of processes that will change on September 1, 2000.
Fees for the new network include a fixed fee based on circuit location and bandwidth, and a variable fee based on total transactions per month. Any firm that has converted to the new network by July 31, 2000 will receive a 50% discount on the fixed fees for the months of September through December. The variable fee ($.015 per transaction with a $2,500 monthly cap) will be effective September 1, 2000 for all member firms whether if they are on the new Network or not.
Monthly Rates
Fixed Fee
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To Clearing Members:
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Rate
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Reference Note
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Connection through Service Provider – Tier 1
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$ 100
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1
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Connection through Service Provider – Tier 2
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$ 500
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2
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Chicago 128 kb connection
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$ 500
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3
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Chicago 256 kb connection
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$ 700
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3
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Chicago T1.5 connection
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$ 1,000
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3
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Non-Chicago 64 kb connection
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$ 700
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4
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Non-Chicago 128 kb connection
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$ 900
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4
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Non-Chicago 256 kb connection
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$ 1,300
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4
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Non-Chicago 768 kb connection
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$ 2,500
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4
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To others:
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Exchanges and Nonmembers
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$ 500
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5
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Variable Fee
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To clearing members:
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Per Transaction
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$ 0.015
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6
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Monthly Cap
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$ 2,500
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7
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Volume 20 – Bulletin #184 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:
BOTCC is a registered trademark of the Board of Trade Clearing Corporation.
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