The various DPM's proposed the fee to discourage ex-floor guys that went "retail" and started competeing with their former bretren. The exchanges then approved the rule.
On their forum, an IB staff have mentionned that IB is waiting about the answer for the cancellation fees, maybe BOX will proceed differently ...
If you do the kind of volume we do, this is a HUGE cost. But that is besides the point. It is ridiculous that I should try to hit a bid or lift an offer, the market maker looks at my order, decides he does not want to fill me, backs away, and now posts my order as the best bid or offer on his regional exchange. Now I get charged to cancel because I did _NOT_ want to make a market. It is absurd! They need one more order type - FILL OR KILL. Now, when the MM doesn't fill me either because he backs away, or I tried to get filled on a posted order withing say 1 second of him displaying it but someone else took it first, it is automatically canceled by the system, and since THEY KILL the order, I don't get charged a cancel fee. This is the only half way decent way to not anger people that want to trade at a POSTED market, but if the market moves away for whatever reason, they no longer want to participate in it without having to be punished for it. nitro
Has the BOX made you rich yet ??? Vega P.S. The guys from the CBOE will be waiting for your return (and money) after you start hating the BOX.
So far so good. I got another perfect fill today. This was the second straight perfect fill since this wealth Box open to me. It was just spectacular. I believe it's going to keep this way for me unless "they" change something in the Matrix. We will find out...
What the hell are you talking about......the BOX has 4 , thats right 4 equite options and volume is thin. I have never heard of so much crying over the CBOE.....Grow up or go trade stocks. CBOE is adapting...and is looking to aquire the PSE. BOX is nothing special, i see very few PIP action so far. BOX and its inpact will not be understood, let alone felt for a least 6 months to a year. PIP is still being sought out by the CBOE, who is filling for PIP privillage and looking to only qoute in nickles. BOX and PIP could do to Options, what pennie spreads did to equites.