Brokers forward your identity to the market with each trade.

Discussion in 'Trading' started by bookish, Nov 15, 2020.

  1. longshort

    longshort

    It's ambiguous in CME's Rule 576 what a Globex Terminal Operator is. On the other hand, some brokers do send Tag 50 IDs assigned to their underlying clients, like Saxo Bank A/S. The broker was fined when the CME found the broker's auto-liquidation algo needed its own Tag 50 ID and may not use the IDs of the broker's clients, as it did.

    Quote below from https://www.cmegroup.com/notices/disciplinary/2017/03/CME-15-0158-BC-SAXO-BANK-AS.html

    Pursuant to an offer of settlement in which Saxo Bank A/S (“Saxo”) neither admitted nor denied the rule violations upon which the penalty is based, on March 16, 2017, a Panel of the Chicago Mercantile Exchange Business Conduct Committee (“Panel”) found that on multiple dates between January 2015 and March 2015, Saxo operated an auto-liquidation algorithm to liquidate its clients’ under-margined positions by entering a market order for the entire quantity of the clients’ open position. Saxo’s auto-liquidation algorithm entered orders without taking into consideration market conditions and, in at least two instances, caused significant price movements in certain CME FX futures markets. On its own initiative, Saxo promptly undertook remedial measures, including developing and employing a new and enhanced custom algorithm to liquidate under-margined customer positions, although Saxo continued to operate the algorithm before the firm completed and deployed the remedial measures. Additionally, during this time period, Saxo routed the market orders to the Exchange using Tag50 User IDs assigned to the underlying clients as opposed to assigning and using a unique Tag50 User ID for the algorithm. The Panel concluded that Saxo violated CME Rules 575.D. and 576.
     
    #21     Nov 15, 2020
  2. maxinger

    maxinger


    We don't believe you until you provide the evidence.
    We are not easily fooled.


    Brokers are not interested to forward your identity to the market
    as 90% of the traders are losing money.
    No one is interested to look at that identity information.
     
    Last edited: Nov 15, 2020
    #22     Nov 15, 2020
  3. rb7

    rb7

    It's amazing to see people thinking they know everything but in fact they know just about shit.

    We're still waiting for the OP to give us more details (unless he already responded under another nickname...).
     
    #23     Nov 15, 2020
  4. xandman

    xandman

    If you are trading against the bots during thin markets in the after hours. They can easily run the market against you.

    It's like card counting. You have retail guys trading mean reversion on... let's say a channel. When enough retail folks have doubled down, you will have a break out against them.

    Also during during thin evening trading, It's much worse in back months where you can see that buy and sell orders have the exact same size and spread all the time. It's just you against one market maker.
     
    #24     Nov 15, 2020

  5. Hmm - I think it's more likely that the AI says - 'this trader keeps losing, I'll take the other side of his trades. Trader Y keeps winning, I'll leave him to the market.'
     
    #25     Nov 21, 2020
  6. Ates

    Ates

    not exactly. it depends on how much AI wins or loses
     
    #26     Nov 21, 2020
  7. I would think what would get attention would be the size of your investment...small funds possibly are not considered that important- larger amounts-I would bet might get some attention and maybe action.. What does everyone think??
     
    #27     Nov 21, 2020