clearinghouse
Registered: Aug 2010
Posts: 572 |
07-09-12 04:46 AM
Quote from Craig66:
I'm not sure what brokers people are using here, but if we assume IB I'm not sure what the point of optimizing feed latency so heavily is if you're going to send orders though TWS? Conversely, if you have co-located DMA, you're probably not worried about the price of feeds.
I don' t trade through TWS for anything that needs precision.
IB will give you bad execution latency, but I'd argue you still need to do your best because their commission structure is so extreme (relative to prop) that you're opening a position somewhere around a full tick to a half tick against you on account of just commissions.
And this is off-topic, but this is why I feel like IB should let customers trade against each other and internalize flow for a far reduced fee. I should be able to post passives for execution against a removing customer, or they should allow us to meet each other at the middle.
Why let the cash flow go to the exchanges? Let us post order to an internal IB exchange and charge us .0010/share or less, not .0050+pass-through-rebates or .01+pass-through-rebate, or let us cross each other at the midpoint. What's it to them on their backend? It's just shuffling shares from one account to another.
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