GENERAL NOTICE NO: 1942
ISSUE DATE: EFFECTIVE: 18 December 2001 1 January 2002
SUBSCRIPTIONS, FEES AND CHARGES FROM 1 JANUARY 2002 1. 1.1 Introduction and Executive Summary The Exchange has determined the subscriptions, fees and charges that shall become effective on and from 1 January 2002. These are set out in full in the Attachment to this General Notice. The main points are summarised below. In determining subscriptions, fees and charges, the Exchange has sought to strike a balance between the competitive environment in which it operates and the interest of members on the one hand, and the financial requirements of the Exchange on the other. Principal Changes The charges for the annual Membership Subscription and all Transaction Charges remain unchanged. The principal changes outlined below provide for a separation of charges made for services provided by the Exchange from the method of delivering those services. This has been brought about by the increased number of methods provided to members for receiving the Exchange’s services. The Minimum Annual Volume Requirement (“MAVR”) will apply only to a member’s first connection; all subsequent connections will in future be subject to an annual rental change. Also, the charges for the installation of LIFFE CONNECT™ connections have been reviewed to reflect more accurately the costs incurred by the Exchange. The quarterly service charges in respect of the Trade Registration System (“TRS”) and the Trade Status Change Stream System (“TSCS”) have been streamlined with, for example, no distinction being made between the first and subsequent TRS IP terminal connections. Generally, this means that the charge for the first connection has been reduced whilst the charge for subsequent connections has been increased. It is planned to upgrade the TSCS PC Gateway Software in 2002.
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2. 2.1 2.2
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2.5 2.6
The charge for the LIFFE Market Feed has been brought into line with the connection charge for Quote Vendors. Installation and annual rental charges have been introduced for 64k and Virtual Private Network (“VPN”) connections for TRS/CPS and TSCS. No additional charge will be made where members use their LIFFE CONNECT™ connections as the method of delivery for TRS/CPS and TSCS. Phasing of Annual Rental Charges The charges applicable to subsequent LIFFE CONNECT™ connections as well as the 64k and VPN connections will apply with immediate effect for new installations. For members who already have connections, or who have already ordered a subsequent connection under the 2001 charging structure, the annual rental charges will not become effective until 1 April 2002 in order to allow members time to review their continuing requirements. A similar arrangement will apply to members who have the LIFFE Market Feed. Further Information Members seeking further information in relation to this General Notice should contact their Account Manager.
3. 3.1
3.2
4. 4.1
BY ORDER OF THE BOARD
N E Carew Hunt Market Secretary
Attachment to General Notice No. 1942 THE LONDON INTERNATIONAL FINANCIAL FUTURES AND OPTIONS EXCHANGE SUBSCRIPTIONS, FEES AND CHARGES FROM 1 JANUARY 2002 The following rates apply with effect from 1 January 2002 until further notice. For comparative purposes, the rates in effect as at 31 December 2001 are also shown. All charges listed below are shown exclusive of any applicable VAT. Changes made to charges applicable from 1 January 2002 are shown in bold. Explanatory notes are provided on pages 4 and 5. From 1.1.02 £ 1. CHARGES APPLICABLE TO ALL MEMBERS Membership Subscription 2. TRANSACTION CHARGES (per side per lot)1 Note: The Exchange from time to time provides contract-specific incentive schemes. These are covered by separate General Notices. Financial Futures and Options Contracts (excluding the Euroyen (TIBOR) and Swapnote® Contracts) Swapnote® Futures and Options Contracts Mini FTSE 100 Index Futures Contract Euroyen (TIBOR) Futures Contract Index Options Contracts Universal Stock Futures Contracts Individual Equity Options Contracts (1000 shares) Individual Equity Options Contracts (100 shares) Stock Contingent Trades (per bargain) Non-Financial Futures Contracts2 Non-Financial Options Contracts 3. 0.25 0.15 0.10 ¥45 0.25 0.25 0.47 0.10 Nil 0.50 0.25 0.25 0.15 0.10 ¥45 0.25 0.25 0.47 0.10 Nil 0.50 0.25 5,000 5,000 As at 31.12.01 £
CHARGES APPLICABLE TO NON-FINANCIAL CONTRACTS Grading fees (seller only) Cocoa Standard Delivery Unit Standard Delivery Unit – appeal Large Delivery Unit Large Delivery Unit – appeal Bulk Delivery Unit Bulk Delivery Unit – appeal Robusta Coffee Robusta Coffee – appeal
48 55 320 370 2,600 2,800 19 50
48 55 320 370 2,600 2,800 19 50
2
From 1.1.02 £ Charges applicable to Non-Financial Contracts (cont.) Tender Fees (seller only) Wheat Barley Potato inspection fees (per side per lot) 4. CHARGES APPLICABLE TO LIFFE CONNECT™ 2 2 150
As at 31.12.01 £
2 2 150
These charges are applicable to the London calling area of 020 - 7. Charges for connections to areas outside the 020 - 7 calling area and to European and other centres are available on application as different charges will apply in different locations. Each member’s first connection in a location is subject to a Minimum Annual Volume Requirement (“MAVR”).3 The LIFFE market infrastructure is also able to support Post Trade Services. The charges for Post Trade Services only relate to existing LIFFE CONNECT™ sites where the MAVR, or annual rental, covers the cost of connections. Post Trade Services can alternatively be delivered via a 64k solution or an internet VPN solution. These solutions attract additional charges (see section 6). Connection charges for the LIFFE market infrastructure Installation of first connection, including gateways Installation of subsequent connections via EASy (live or contingency), including 2 gateways Installation of subsequent connection via a Value Added Network Installation of each additional gateway Relocation charge (per site) – to a new building Internal move of equipment (minimum half day) Annual rentals Subsequent connections via EASy (per connection) Subsequent connections via a Value Added Network (per connection) 5. PRICE INJECTION CHARGES4 These charges relate to the daily usage of bandwidth based on the limits specifically allocated to each member. The charge is per message. Between 100% and up to 110% of message allocation Above 110% and up to 120% of message allocation Above 120% of message allocation 0.02 0.10 0.30 0.02 0.10 0.30
Nil 15,000 7,500 3,000 15,000 800 per day 10,000 5,000
Nil 12,500 12,500 2,500 12,500 75 per hour Nil Nil
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6.
POST TRADE SERVICES Post Trade processing at LIFFE is provided by a combination of the Trade Registration System (“TRS”) and the Clearing Processing System (“CPS”). TRS and CPS are accessed using a number of different methods; TRS terminal, Trade Status Change Stream System (“TSCS”) and Trade Message Protocol (“TRAMP”). Post Trade Services delivered using an IP solution, currently TRS terminal and TRAMP (with the TSCS PC gateway to follow in 2002), have the benefit of not being dependent on either the location or the physical infrastructure over which the service is delivered. Therefore a member could transfer live connections to a disaster recovery site without the need to have dedicated services provided at that location, hence saving the associated costs. From 1.1.02 £ Service Charge (per quarter) Trade Registration System (TRS) terminal access5 Initial IP terminal connection Each additional IP terminal connection Trade Status Change Stream System (TSCS)6 TSCS Service TSCS PC Gateway Software7 TRS TRAMP connection per market First connection Subsequent connections LIFFE Market Feed8 ALTERNATIVE CONNECTION METHODS 64k solution9 Installation per 64k Quarterly rental VPN solution via the Internet10 Installation per VPN connection Quarterly rental per VPN connection 5,000 1,250 1,500 500 Nil Nil Nil Nil 750 750 1,875 1,875 3,125 3,125 2,500 1,000 500 1,000 1,000 4,000 1,250 625 As at 31.12.01 £
4 Explanatory Notes
1. Transaction Charges LIFFE Recognised Strategy Trades in Financial and Equity Options Contracts will continue to be treated at just one and a half times the normal per lot fee irrespective of the number of legs involved in the strategy. Transaction charges do not include LCH clearing fees, tender fees, cash settlement and options expiry fees. 2. Cocoa Futures Levy A 1p per side per lot will be added to the Cocoa Futures transaction charge for The Biscuit, Cake, Chocolate and Confectionery Alliance. 3. Minimum Annual Volume Requirement A Minimum Annual Volume Requirement (“MAVR”) applies to all members with direct access to LIFFE CONNECT™. The MAVR is a minimum charge for transactions per a member’s first connection over a year and will vary depending upon the location of the member. Credit against the MAVR will be given in respect of the member’s traded volume on LIFFE CONNECT™ of 25p per lot (one side) on financial transactions (excluding Swapnote® and Mini FTSE 100 Index futures contracts); 15p per lot (one side) on Swapnote® transactions; 10p per lot (one side) on Mini FTSE 100 Index futures transactions; 47p per lot (one side) on individual equity options (1,000 share contracts) transactions or 10p per lot (one side) for transactions in 100 share contracts (both including market maker transactions); 50p per lot (one side) on non-financial futures transactions; and 25p per lot (one side) on non-financial options transactions. In respect of a member’s first connection, a deposit for the MAVR will be required. (The size of deposit will vary with location.) In respect of most members who are active on LIFFE CONNECT™, the credit against the MAVR referred to above is likely to be sufficient so as to ensure that no “unrecovered” MAVR will arise. Members require only one connection in order to trade all products on LIFFE CONNECT™. For a new first connection the annual period over which the MAVR will be calculated will commence at the earlier of a member becoming active on LIFFE CONNECT™ or sixty days from the date of installation. The next and subsequent annual periods will commence on the anniversary of the start of the first period. 4. Price Injection Charges The charging arrangements applicable to all Automated Price Injection Models were set out in General Notice No. 1911, issued on 31 October 2001 and Circular No. 01/98, issued on 2 November 2001. 5. Trade Registration System terminal access Printers and asynchronous terminals are no longer provided by LIFFE for TRS services. All TRS services are now supplied as IP connections via customer supplied terminal emulation software. The IP terminal connections are not location dependent. The asynchronous technology (modems and terminal servers) will be phased out in due course.
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Trade Status Change Stream System (TSCS) The annual charge to General Clearing Members also includes, at no further cost, a trade status feed for associated Non Clearing Members.
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TSCS PC Gateway The TSCS PC Gateway product is currently delivered using an asynchronous connection. This will be replaced in 2002 with an IP based version. The asynchronous version and associated technology (modems and terminal servers) will be phased out in due course.
8.
LIFFE Market Feed Members were informed in Circular No. 00/73, issued on 14 September 2000, that the dissemination of data is prohibited unless the member has entered into a LIFFE Member Market Data Dissemination Agreement. This prohibition also applies to data disseminated from the LIFFE CONNECT™ API.
9.
64k Solution The costs for the 64k solution are location dependent. Costs quoted are for sites within the London 020 - 7 calling area only. Members should contact their Account Manager to discuss prices for sites outside this area. The costs of any Post Trade Services provided via the 64k solution are additional, as stated in section 6.
10.
VPN Connection via the Internet The Virtual Private Network (or VPN) connection provides a method of accessing LIFFE’s Post Trade Services via the Internet. For more details of this offering, members should contact their Account Manager. The costs of any Post Trade Services provided via the VPN solution are additional as stated in section 6.