WEST PALM BEACH, FL (www.hedgeco.net) – The Chicago Mercantile Exchange, {CME}, announced that it will introduce a new Family of Funds membership class for hedge funds. According to the pressrelease, the CME Board of Directors approved the new class at its Dec. 2, 2004 meeting. The new class will �allow a family of funds to receive member trading fees without the need for each fund inthe family to become an inactive clearing member.�
Terry Duffy. CME Chairman said, �Creating a CME membership category for hedge funds is another example of our strategy to attract new users to our markets, there are currently more than 8,000 hedge funds with $1 trillion in assets under management. By providing a membership structure that better suits the needs of this large and growing customer group, we believe more hedge funds will become inactive clearing members and benefit from member rates.�
The new procedure will extend the member trading fees advantage to five additional funds that are being managed by a qualified hedge fund manager; however the hedge fund manager or one of its funds must be a currently approved CME inactive clearing member, acquiring new membership.
Craig Donohue, CME Chief Executive Officer explained, “Because hedge funds are not owned in the traditional sense by the fund management company, they did not meet the 100 percent ownership requirement under our current membership rules, through this new membership class, we are creating an incentive for this important customer segment to become members of our exchange, which will likely influence their increased participation in our markets.”
The Chicago Mercantile Exchange Inc. (http://www.cme.com) is the largest futures exchange in the United States and the first publicly traded financial exchange in the U.S. according to Exchange information..
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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