As I explained, the smart routing preferences, such as "Highest Rebate", apply to liquidity providing (not taking) orders. The smart router optimizes the routes to benefit the customer. It will not route a marketable order to CBOE, when BOX is at NBBO. Timber Hill preference will only be considered when all else is equal for the customer, e.g. the order is only marketable at AMEX and CBOE. The language you refer to predates the maker/taker exchanges.
The language is from the current 606; quarter ending March 31, 2012. Also, how and when would Timber Hill express their preference between CBOE and AMEX in that example?
Here are some trades hajimow posted: http://www.elitetrader.com/vb/attachment.php?s=&postid=3528673 Which case might have applied to his BOX execution: your (i) or (ii)? Thanks.
I'm thinking of opening the PaperTrader account with IB, just to compare options capital requirements. I have a margin account with them, but I'm interested in knowing how much capital is used - with short naked options VS verticals, calendars, spreads etc Do you think this will give me a close appoximation? marc
All the info that you are looking for are available in IB's website. Click on the link below and the click on options and select your strategy and see the margin requirements. http://individuals.interactivebrokers.com/en/p.php?f=margin
It appears that on your BOX execution you received the rebate since Timber Hill decided to improve the price on 7 of your contracts. http://www.elitetrader.com/vb/attachment.php?s=&postid=3528673 They used the sub-penny scheme to give you a partial fill at BOX. This is fine for you, but lousy for whatever other customer held the NBBO at the time your limit order was sent. Read comments from Bright Trading regarding sub-penny fills: http://www.sec.gov/comments/s7-02-10/s70210-63.pdf
That was a liquidation order. I over traded and I was liquidated on that position. That is perfectly fine with me. Good thing that I was liquidated with profit. This will be my last post on this thread since everything should be almost clear.
To my knowledge there is no such thing as "the sub-penny scheme" in the options markets. Perhaps you can explain, instead of just cutting-and-pasting interesting - yet half-relevant links. Your numerous posts about IB suggest that no matter what IB does, you will always try to find something wrong with it. I do not wish to get into debates with you; just pointing out to the thread participants that (some?) of your posts need to be taken with a grain of salt. I am putting you back onto my ignore list.
Are you talking about the Price Improvement Period (PIP) auction? http://www.bostonoptions.com/pip_en
How did hajimow get a sub-penny execution at BOX during an automatic liquidation when he set SMART to find the "Highest Rebate?" I never knew I was on then off your ignore list.