IB Margin Changes

Discussion in 'Interactive Brokers' started by gtcharlie, Sep 19, 2011.

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  1. jayre

    jayre

    This is based on my research on IB’s liquidations practice, and after speaking to people that have first hand knowledge. I think Def will agree with the 9:40 time. As for the reason why it’s done at 9:40, since IB doesn’t comment here about the process of liquidation etc. we can all speculate about the reasoning.
     
    #281     Nov 7, 2011
  2. jayre

    jayre

    I agree, 9:40 is more generous then 9:30.
     
    #282     Nov 7, 2011
  3. Options12

    Options12 Guest

    Newurldmn, let's wait for IB to confirm that they wait until 9:40 to start auto liquidation as stated by rtg in this thread.

    There's apparently lots of confusion out there on the auto liquidation policy. On 5/7/10, the day after the flash crash, an apparent IB employee in programming proclaimed,

    Many vigorously challenged this statement although I do not know whether it was ever retracted by IB within the ET forums.
     
    #283     Nov 7, 2011
  4. jayre

    jayre

    IB has at least 3 people continuously monitoring Elite Traders , or IB’s affiliation with TH these people reply by writing a couple of posts with some disingenuous “half truths” and then when questioned about that, these people are no more to be found. This has happend time and time again. See some examples below ;

    http://www.elitetrader.com/vb/showthread.php?threadid=210359

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=222191

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=198220

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=131741

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=136539

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=141896

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=118302

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=118256

    The quote
    "We never auto-liquidate instantaneously. You always have 10 minutes to deal with a problem". Is making it sound that there is always 10 minutes before IB will liquidate, that’s false. What is true however that you have 10 minutes in the morning between 9:30 till 9:40.
     
    #284     Nov 7, 2011
  5. Options12

    Options12 Guest

    But they could probably take a lot less if they gave it five more minutes since that's when the circuit breakers go on and market makers are told to tighten spreads.
     
    #285     Nov 9, 2011
  6. newwurldmn

    newwurldmn

    Perhaps. I don't remember how it works for options anymore. When I was a market maker we were required to make tight markets after 2 minutes. But the reality is that 10 minutes should be enough time to get you out of the crazy stock prints.

    Anyway, if you guys are so against Interactive brokers join another firm. There are lots of good ones out there. If you need what the extra products that IB offers, realize there's a reason they are offering it and everyone else isn't.
     
    #286     Nov 9, 2011
  7. Options12

    Options12 Guest

    newwurldmn, new rules came into effect in 2010 that say

    "For securities subject to the circuit breaker pilot program approved this past summer, market makers must enter quotes that are not more than 8% away from the NBBO.

    For the periods near the opening and closing where the circuit breakers are not applicable, that is before 9:45 a.m. and after 3:35 p.m., market makers in these securities must enter quotes no further than 20% away from the NBBO."

    http://www.sec.gov/news/press/2010/2010-216.htm

    I think IB would extend the 10 minute auto liquidation grace period to 9:45 once this rule printed.
     
    #287     Nov 9, 2011
  8. newwurldmn

    newwurldmn

    I left market making many years before that rule. But it makes sense that 15 minutes makes more sense than 10 minutes.

    I still think that rather than trying to have IB admit that they are unfair, you should look for different brokers. Apparently a lot of people like their policies and you have lots of choices out there. You are trying to beat a dead horse and it's unclear what you are trying to achieve.
     
    #288     Nov 9, 2011
  9. Options12

    Options12 Guest

    I appreciate your advice and would understand if you ignore this thread.

    IB will benefit from a review of their methodologies and will be a stronger broker in the future for you and everyone else who keeps money with them.
     
    #289     Nov 9, 2011
  10. newwurldmn

    newwurldmn

    Fair enough. I will go. You two will be talking amongst yourselves.

    I don't use IB because I don't like their liquidation policies and more importantly I didn't like the reviews I read about their customer service.
     
    #290     Nov 9, 2011
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