I'm an IB lover, but there's one thing I really don't understand about their system. I've read repeatedly that ETF's do not require an uptick for shorting. Yet IB requires an uptick from what I have been told by multiple IB reps. One member wrote in to IB (according to another thread) that he had difficulty even with screen prints of brokerage documents to get IB to understand/believe what he was talking about. But I have talked to several of their customer service reps and they seem to know that you don't have to uptick on an ETF but just claim it's IB's "software". I've got a feeling that I'm missing something here: IB is usually pretty savvy on giving its traders every advantage possible. Can someone explain to me if I'm missing something? Why would IB require an uptick on an ETF?
A bunch of these ETFs (maybe all of them) lost their minus tick or zero minus tick short sale exemption.
That particular one goes back to 2002 (BHH). Is there a list of what etf's are affected by this rule?
It's somewhere on the AMEX web site. BHH and HHH are the one's I know about. If anyone using IB believes they can't short an ETF on a downtick when they should be allowed, send a mail to the IB help desk with MG101 in the subject line with the ETF, your account #, time, etc.
Def, Just so you know, I don't think your csr's fully understand what's going on with ETF's and the uptick rule. Not that they can know everything mind you, but they made it sound like it was just the way your software was executed on ETF's. Thanks again for the update...
That's because you were not at the meeting to get the secret handshake. Just kidding, try right clicking and hitting save target as. Then open Adobe and locate the file and open it. I have had this problem since I am too cheap to purchase the new free download.
shoeshine, won't disagree that they can know more but it is difficult to decipher the rules and know which products are listed on a national exchange. take a look at the rule below and then try to find the circulars issued by the AMEX on BHH and HHH. No wonder there is confusion. In any event, i'll see if we can prepare an FAQ for them so they are better briefed. Most importantly, the programmers set the rules given instructions by compliance/legal and the TWS acts accordingly. It/we seem to be handling things properly. If any of you don't think so, send a note with the details as mentioned in my previous post. http://wallstreet.cch.com/americans...canstockexchangeamex&RankBase=1000&AdvSearch=
I've got a headache now! I get your point. It wasn't a criticism: I've learned that IB is always right and just following the regs. I was just trying to reconcile the (out-of-date) materials I was reading with what I heard from the csrs. Thx for looking it up.