VOLUME 20 - BULLETIN #250

TO:	ALL CLEARING MEMBERS
FROM:	BUSINESS SYSTEMS GROUP
DATE:	August 24, 2000
SUBJECT	BOTCC® New Customer Network Fee Schedule, Fixed & Variable

As previously announced in Volume 20 – Bulletin 213, the Clearing Corporation will discount the fixed network fee by 50% through the end of this year effective Friday, September 1, 2000 for firms utilizing the new customer network by July 31, 2000. Also on Friday, September 1, 2000, the new Customer Network variable fee of $.015 per transaction with a monthly cap of $2,500 will take effect. Clearing Members will see the variable fee charged on their September clearing invoices. As a reminder, the variable fee schedule is detailed below.

Fees for firms that want to connect a PC from the trading floor of the Chicago Board of Trade into the Clearing Corporation’s new customer network are as follows:

Firms primary connection (Main Processing System)

$ 500

Firms non-primary connection (PC connection from CBOT trading floor)

$100

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.

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.