CME threatens to fine me $2000

Discussion in 'Financial Futures' started by Daal, Nov 26, 2008.

  1. Daal


    "Dear GLOBEX trader: Interactive Brokers has noticed a high level of activity in your account. Please note, according to policies set forth at, clients who repeatedly violate the message/volume ratio may incur a fine of $2000. In the event that your trading activity continues to violate this policy and IB is charged, the resulting fine will be passed on to your account. For trade date 20081126, you generated 19 messages in the ZQ, contract, while only executing a combined 1 in volume. Your msg/volume ratio of 19:1 does not comply with the benchmark GLOBEX uses for the ZQ, which is 10:1. Please ensure that you review the CME messaging policy and manage your trading accordingly"

    The volume ratio is calculated and reset quaterly correct?
  2. cheap bastard!!!! :) Can't make up your mind what price you want eh?


    Its real easy... sell all ZQ 99.75. long dated. $1000 risk, unlimited upside.

    (er... i had to update/edit this message 19 times myself to fix the parameters of my 'zq order')..
  3. what the hell is a message?
  4. Daal


    bid ask spread is huge on the back months. I hate to be the sucker who pays up. I suposse 'message' is a limit order, when you change you created a new message
  5. TraDaToR


    I had the same exact problem with an automated bot on an other instrument about two weeks ago:

    I was doing 130 cancelled/1 filled on a 50/1 instrument. It's not CME but IB that is warning you that CME can fine you for this. IB is only fined if IB customers as a whole are over those ratios , but prefers to apply it to each account.
  6. joemiami

    joemiami Guest

    too funny....
  7. TraDaToR


    Message is an order submission, cancellation, size change... that you send to CME
  8. bespoke


    are there any ratio limits for equities like this?
  9. imc


    Sounds more like a psychological problem related to trader indecision.

    Have you tried tranquilizers? They should work out cheaper for you.
  10. TraDaToR


    Not at all, he doesn't want to pay the spread. He's right to do that on a slow moving illliquid instrument.
    #10     Nov 26, 2008