The Privilege of Trading Permits | Information
Clearing Participants | Leasing Information

PRICES TO LEASE TRADING PERMIT

The actual price to lease a Trading Permit is not determined by the KCBT, but is set by you and the KCBT Permit Owner.

1. ARRANGE A LEASE AGREEMENT

To lease a Trading Permit, your first step is to contact the Department of Membership Services to arrange a lease agreement with a KCBT Permit Owner. The exchange has a standard delegation agreement that must be used.

This agreement must be filed with the Department of Membership Services and is subject to standard procedures for processing and approval.

2. ESTABLISH A WORKING RELATIONSHIP WITH A CLEARING PARTICIPANT

Next, you will have to establish a working relationship with a KCBT Clearing Participant firm, including meeting the firm's minimum financial requirements. The terms of the agreement will be determined between you and the firm. (A list of Clearing Participant firms is available upon request.)

3. FILE A PERMIT HOLDER APPLICATION

To become a delegate, you also have to file an application for Permit Holder status. A $300 transfer fee and a $500 non-refundable investigation fee must accompany your application. An outside investigative agency will confirm information on your application and investigate your background.

You also must have two KCBT Permit Holder-sponsors whom you have known for 12 months to become a leasing Permit Holder, or you must provide two letters of reference attesting to your business character and indicating the length of your business relationship with each reference.

4. PROVIDE FINANCIAL INFORMATION AND POST DEPOSIT

Delegates are subject to the same financial requirements as Permit Holders. For information on these requirements, please contact the exchange.

Required financial information will be reviewed by Exchange Staff.

5. YOUR APPLICATION IS REVIEWED

Your application will be reviewed by Exchange Staff and may be sent to the KCBT's Trading Permit Committee for approval.

6. ATTEND ORIENTATION

All applicants who will be trading in the pit are required to complete the exchange's orientation program. Please contact the exchange for details.

7. RECEIVE FLOOR BADGE

After these requirements have been met and your application has been approved, you will receive a floor trading badge.

However, floor traders and floor brokers must register with the National Futures Association. Registration approval may take several weeks, a fact prospective Permit Holders should consider in determining when to apply for registration