It would be great if IB do introduce CPM but it does seem a little early for that. All they say is: "IB Comments: We believe, that rule based margins will be replaced by portfolio margins by Nov." Either way, it's got to be an improvement.
For whatever it's worth, IB claims they fixed this problem on 9/12/06. Here was the original "feature request", which was followed with a "fixed" message from IB. "Calculate margin requirements for Broken Wing Butterflies based on the actual risk, not as two trades (debit spread + credit spread). 370/360/340 (1/2/1 ratio) is only $10 max risk (therefore margin), not $20." I have no idea if this is the problem you were referring to, but I just stumbled across it on their web site.
Thanks, good to know. It was a long standing grumble with some traders I know and seemed like a trivial software fix (don't they all). I don't trade them myself Riskarb will be glad to know; the embedded extra OTM short vertical in the position is not to my liking.
I will try to make it; an excuse to get a room at Red Rock and Wynn. We should meet at the Spearmint Rhino. http://www.redrocklasvegas.com/spa/index.php