IBâs SMART router is treating many ETFâs as if they were listed on the AMEX when they are not. This has happened to my orders more than once. For example I had an order to buy EWM pre-open re-route at 13.49 submitted hours before the market open. Even though EWM is listed on ARCA, SMART routed the order to the AMEX where it executed on the AMEX open at 9:33:38.
Meanwhile EWM opened on ARCA at 9:30:06. The ARCA volume was around 130,000 vs 21,900 on the AMEX. Arcaâs price was 13.12, Amexâs 13.36.
There are other problems with resting orders on the AMEX. Several times Iâve had AMEX limit orders fail to execute where something happens and the order seems to get âstuckâ, frequently after a small partial execution. These orders never fully execute and remain showing in TWS even after being canceled and only disappear after the IB servers reset the next morning. Routing orders to the AMEX is bad practice with the exception of executing in the opening or closing cross (and now that NASDAQ is holding an opening and closing cross for NYSE and AMEX stocks hopefully that will change also).
I donât know if this holds true for all ETFS or only a subset.
If you care about your ETF executions you should check to see where the order is resting or avoid SMART altogether until IB fixes the problem. Iâve been told they might have this fixed in three weeks.
I reported this to IB in December. After many back and forth with support, i was told it had been forwarded to the development group.
I'm not sure the support person every really understood the issue.