Why no longs but shorts are OK. . . You can get your ass in a pretty big sling with an open short at expiry, can't you?
Just to clarify, this is the IB policy from the website: " For futures contracts that are not settled in cash but are settled by actual physical delivery of the underlying commodity, customers may not make or receive delivery of the underlying commodity with the exception of certain currency futures contracts where physical delivery of the currency will be received. For long positions not settled in cash, customer agrees to roll forward or close-out the position by offset three (3) business days prior to the exchange-specified first notice day (the long "Close-Out Deadline"). For short positions not settled in cash, customer agrees to roll forward or close-out the position by offset three (3) business days prior to the exchange-specified last trade day (the short "Close-Out Deadline"). It is Customer's responsibility to make itself aware of the "Close-out Deadline". If customer has not closed out any position in a futures contract not settled in cash by the "Close-Out Deadline", IB has the right to liquidate customer's position in the expiring contract. " The first notice day is the first day that a buyer of a futures contract can be called on by the clearinghouse to take delivery. Hence, we restrict customers from opening new long contracts during this period. You may short the contract after the first notice day and up to three business days before the last trade date, because there is no chance of a physical settlement having to take place. Fyi.. for the 5, 10 and 30 year September contract: First Notice Day: 29 August Last Trade Date: 19 September (see CBOT website under Notice calendars)
So I am assuming there will be a big jump in volume for the December contract starting next week, right?
Why 3 days? That's ridiculous. IB is forcing its customers that want to go long these contracts to buy the (usually less liquid) back month. I think IB could easily cut this down to 1 day(when December would have a 1 tick spread). Why couldn't it allow its customers to trade until 10am e.g., on the day before Dec. (in this case) becomes the front month? If customers don't comply by 10am, then auto-liguidate long positions. Where's the risk for IB with this policy. 3 DAYS????!!!! I tried to buy USU yesterday and couldn't because of IB's policy, and I'm not happy about it to say the least.
The best I can suggest is to write a note to ibmgt@interactivebrokers.com explaining the liquidity issue and suggesting a change in policy. I'll mention something as well.
It won't do any good with their customer service skills. I am getting so tired of their act, I am going to go over to FFast Trade.
also mini gold + silver traded on the ace exchange I saw free money lying on the exchange this am as sept mini silver was offered 2 cents under fair value based on the sept / dec spread ... but I could not buy any as I had no position and it was restricted for buying due to those same conditions as the bonds