IB and new CME Cancel/Modify

i wonder, does this only apply to native orders, or simulated as well

 

There will be no charge for simulated orders.

( if they follow the same rules as for Eurex cancellation fees )

 

I have heard that the cme offers 3000 times leverage for simulated orders, though.

 

I bet it doesn't apply to people who own or lease a seat. I think that is the situation on eurex, people clearing at member firms don't pay cancellation fees, retail does.

 

CME Globex Messaging Policy Surcharges Effective August 1, 2005
In order to allow a thorough analysis of the trading activity during the June roll, the CME Messaging Policy surcharge phase has been rescheduled to take effect August 1, 2005.

The CME Globex Messaging Policy is a two-step evaluation which measures the activity of each Class A firm for message quality via the "Trade Ratio" and the amount of liquidity via the "Volume Ratio".

The policy took effect on April 18, 2005, without surcharges; surcharges will be implemented beginning August 1, 2005. Please refer to www.cme.com/messagingpolicy for complete details on the CME Globex Messaging Policy and product benchmarks.

Apparently the CME was sending up a trial balloon to see what the response was. But the delay is probably only temporary.

 

I got an email from IB confirming the cancelation fees. They are effective June,1 2005

 

Looks like IB's fees will primarily affect retail customers. The fees are per trade or per order, not per contract. So, it will hit small orders much more severely than large orders. A 600 contract order won't really care about a few $1's here and there. A one lot trader will.

 

No that is not true. You go under a credit system as a member. The problem with most spoofer's on CME is that they do NOT execute enough volume and there have been TONS of complaints. Another thing is that the CME is worried about competition from Eurex US. Eurex US is putting in anti spoofing rules. Machines can still operate but you better be doing the volume. Most of the effective large spoofer's on Eurex have historically done a ton of volume. The credit system will not hurt a Mr Rotter. But will kill the average spoofing machine that games the CME. These are good rules IMO.

 

So if I execute two 1 lot orders, I get a $10 credit towards cancels/mods, but if I execute one 2 lot order, I only get a $5 credit. Correct?

Bob

 

My broker at Alaron is not aware of any charges. If this is based on per order vs. contract, will hurt the smaller trader and not affect the flashing that occurs, imho.