IB and new CME Cancel/Modify

Discussion in 'Interactive Brokers' started by RAY, May 27, 2005.

  1. squeeze

    squeeze

    O.K but could you make your ratio vary for each product to reflect this difference?
    e.g 5 for ED, 8 for ES e.t.c

    Would it be possible to have a small quota of free modify/cancels per day?
    e.g first 10 or 20 modify cancels are not charged. This would make sure that traders that put in a few orders that don't get hit can cancel them without getting charged.
     
    #71     May 30, 2005
  2. cashola

    cashola

    The CBOT should send the CME some geishas and golf memberships as a Thank YOU.....
     
    #72     May 30, 2005
  3. Could the CME be doing this for a fundemental reason and hiding behind technology/traffic weaknesses?

    Could the CME have discovered that Automated Trading was hurting their business?

    Really, how do you folks explain what has happened to the ES?

    Educate me...(maybe those floor traders are the last of the great pioneers)

    Michael B.
     
    #73     May 30, 2005
  4. Businessman

    Businessman

    If this will restrict non designated market makers from
    trying to act as market makers, that can can only mean
    less liquidity and less trades being transacted.
    Less commissions for CME, although the fee will probably more
    than make up for that.
    The market makers have less competition so they are happy too.

    Everyone else gets worse fills.
     
    #74     May 30, 2005

  5. thats a good idea. plus the cancel fees should be based on a weekly/monthly system not just one day. or ib and the cme should target the api systems who are causing the problems and not everyone cause i sure don't abuse the globex system with constant submit/cancel.
     
    #75     May 31, 2005
  6. CME is running scared. They have been since last summer. Why do you think they pulled their LDB? Why do you think there aren't accurate volume or tick readings via their website? Why do you think they're rethinking\cancelling squawk services? Why did they increase the max lot size from 400 to 1500 last yr for the ES?

    I can't say that I blame them, but talk about an uneven playing field. Next thing will probably be only providing the public with 10 min delayed data.
     
    #76     May 31, 2005
  7. Nereus

    Nereus

    steeldust

    ...cause i sure don't abuse the globex system with constant submit/cancel.

    Like you, I do not abuse the globex system but if you, like many of us, use trailing stops that are native to IB, then a $1 mod fee would charged every single time the trailing stop was adjusted. on a good run.. this could add up considerably... which brings me to this...


    I would like to get a clear understanding what this means.

    Let’s say that I trade ES and I am currently flat. Lets also ignore the normal commissions.

    A) I place a bracket order of stplmt buy at 1200 & stplmt sell at 1195 … the buy order at 1200 is hit and filled and the stplmt sell order at 1195 is canceled. I also have an intial stoploss order at 1197, which will begin to trail when price reaches 1203.

    = Cancel/Mod fee of $1.00 & Execution credit of $5.00

    B) Then… I have a trailing stop in place, which trails the price by 3 points. Price moves to 1211 then retraces to 1208, filling my stop.

    = Cancel/Mod fee of $9.00 &Execution credit of $5.00

    NET RESULT = Total Cancel/Mod Fee of $10.00
    Total Exceution Credit of $10.00
    NET $0.00


    “A” Since the stplmt sell order was canceled via OCA, this would result in a cancellation fee… correct?

    “B” Since the trailing stop moved from its hard position of 1197 to B/E then moved another eight times (assuming 1pt incremental moves), this would total 9 modifications… correct?


    Can someone please confirm if this scenario is accurate.


    Thank you very much.
     
    #77     May 31, 2005
  8. #78     May 31, 2005
  9. love how IB going to piss off its customers and force them to leave over a measly $2k..... thats a joke


    if they max IB can be charged is 2k per day they stand to make a fortune if all their customers keep paying this cancel fee...
     
    #79     May 31, 2005
  10. Quartz

    Quartz

    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.
     
    #80     May 31, 2005