Hi, I would really appreciate it if you guys can give this feature a 5*. I realize that few people trade equity warrants but IB's smart router for warrants is not good at all (it is really great for equities and options trades). My orders almost always go to Island/Nasdaq. Also huge % of daily volume is missed as it seems that the smart router does not have access to dark pools. I believe Jeff/CSFB algos will substantially improve execution quality for warrants. It should be easy for IB to add this feature as they already have access to the algos. Thanks. https://www.interactivebrokers.com/en/index.php?f=2493&sid=12164
Curious, I never follow US warrants. How active are they? Why not trade the listed options as I've always found warrants a fools game. (ie. you can't short them which gives the issuers free reign to play games).
Depends, some are very liquid, some are not. I trade options as well. The difference is warrants have much longer expiration dates. There are some warrants out there (i.e. AIG TARP warrants) which are pretty interesting. I have never shorted warrants ,so I don't know. I just buy and hold.
it seems that the smart router does not have access to dark pools IB/TWS can be configured to include dark pools in the smart router routes. Dark Pool Smart Routing Configuration A new checkbox on the Smart Routing page in Global Configuration allows you to instruct IB's smart router NOT to include any dark pools in its algorithm. This feature affects stock and warrant orders only. From within Global Configuration, in the left pane select Smart Routing. Check Do not route to dark pools. Customers who use the Cost Plus pricing structure will also have the ability to specify Smart option routing specifications.
Thanks. I have already looked at this. It just seems that that warrant orders are not routed to dark pools. They really need to add Jeff algo. It is the best.