Rates and Fees

Effective: June 27th, 2007

The Exchange charges a 4% commission on all net profits made trading a particular market.

Notes:

• The Exchange no longer charges trading and expiry fees - only the 4% commission on all net profits for a particular market.
• All profits, including from trades made before the scheduled start time of an event (which were previously exempt from trading and expiry fees), will be subject to this 4% commission.
• If you had open positions on the day this fee system was introduced the calculation of your 4% commission will take into account the trading and expiry fees you may have already paid, so you won’t be charged twice. Because of this you may have received a fee refund on June 27th, 2007.

Examples and Explanations

A market can be either a group of linked contracts based on the outcome of the same event, or an individual stand-alone contract. For example, the contracts listed for the winner of a particular NFL or MLB Division would be considered a market. But the individual contracts listed for NFL or MLB games are stand-alone contracts and therefore also considered individual markets.

This means that commissions for trading the winner of an MLB Division (for example) will be calculated using the net profit received from trading all contracts in the group, but the commissions charged for trading a contract on the outcome of an MLB game will be calculated from the net profit from that individual contract.

Let’s use the winner of the AL East Division contract group as an example:

Trader A trades only AL.EAST.TOR and makes a profit of $150.00. He is charged a commission of $6.00, which is 4% of his net total net profit.

Trader B trades the following contracts and has the following profits/losses:

His net profit for the contract group is $215.00 ($260.00 + $75.00 - $120.00). Therefore his commission will be 4% of this net profit figure, which is $8.60. He is not charged a commission individually on each contract he profits on - only on the net profit for all trading across the whole group.

Trader C trades the following contracts and has the following profits/losses:

Although he has made a profit on two contracts his overall net loss for the group is -$415.00. Because he made a net loss he is charged no commission.

The commission is charged each time a profit is recorded, but this may be refunded later if a net loss results. For example:

Lets say Trader C trades out of his AL.EAST.BOS position early to make the $100.00 profit, but holds the remainder his positions until expiry (settlement). When he trades out and is credited the $100.00 profit he will immediately be charged a $4.00 commission. But after expiry when his net loss of -$415.00 is recorded he will be refunded the $4.00 commission he was charged earlier.

This will also be the case if contracts within the same market are expired at different times. You may pay a commission on early profit and then have it refunded later if a net loss on the market results.

For an MLB game (as an example) however each contract is considered an individual market and the 4% commission will be applied accordingly. A commission will only be due if there is a net profit made on the contract.

If you trade out of a position in the early innings for a profit you will be charged the 4% commission at the time of the trade. If you then go on to make a further profit at the expiry of the game you will charged a further 4% on this profit. But if you end up with a net loss on that contract then the 4% you were charged on earlier profits will be refunded.

If you have any questions regarding the fee structure then please contact us at help@tradesports.com.