UPDATE
VOLUME 20 - BULLETIN #338
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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July 10, 2001
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SUBJECT:
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New Customer Network Fee Schedule, Fixed & Variable
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As previously announced, the Clearing Corporation will implement a customer Network Fee Schedule to include a flat connection charge and a variable $.015 per transaction fee with a monthly cap of $2,500. All charges are detailed below.
Disaster Recovery
The monthly fee for member firms using a third party network connection to the clearing corporation for disaster recovery is $125.00 per month. The monthly fee ensures that the member firms user profile is duplicated in the network for disaster recovery purposes.
The fee for member firms using a third party network connection to the clearing corporation for disaster recovery and declare a disaster is $2,500.00. The fee ensures that the technical resource at the clearing corporation is available to help facilitate the transition to the firms selected for third party disaster recovery site.
Cancellation and Relocation Charges
There is a minimum charge of $5,000 for cancellation or relocation of network circuits that has been in service for less than 12 months. This is a pass through cost to the user from our managed network provider, AT&T.
The following is the Clearing Corporation’s fee schedule for the New Customer Network.
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To Clearing Members:
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Reference Note
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Connection through Service Provider – Tier 1
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$ 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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Connection to CBOT Trading floor-primary
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$ 500
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5
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Connection to CBOT Trading Floor-Non-primary
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$ 100
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6
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Per Transaction
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$ 0.015
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7
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Monthly Cap
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$ 2,500
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8
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Note: Charges associated with establishing a PC connection for a clearing member to the new customer network from the CBOT trading floor will be passed through to the clearing firm requesting the service. Please complete the PC trading floor form attached to Volume 20-Bulliten #274 located on the BOTCC website at www.botcc.com or contact your BSG representative for a copy.
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) Firms who have their Main Processing System on the CBOT trading floor.
6) Firms who have a PC only connection on the CBOT trading floor.
7) The variable fee is set at a rate sufficient to recover BOTCC’s cost. Transactions, defined as all matched and unmatched 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.
8) 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 costs in maintaining the new network.
Should you have any questions, please call or e-mail one of the following Business Systems Analysts:
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