importance of front-end certified by CME

Discussion in 'Order Execution' started by Bronce, Mar 26, 2007.

  1. Bronce


    want to ask those who trade futures.

    How important that your broker's front-end is certified by CME?

    I am specifically intrested in order execution aspect.

    Are those front-ends that are certified by CME considered to be more reliable and stable in terms of speed and reliability of order exectuion?
  2. Like which Non-certified ISV's Bronce? Arent these just "white Labeled" versions of CME certified products like PATS and Rolf and Nolan's stuff?
  3. Bronce


    I don't know. I am not much into it.
    I'm currently looking for a broker to trade index e-minis. Went over reviews of brokers on ET. Made particular emphasis on execution. Some of the brokers on my list had -ve comments on execution side, partially explained by the fact that their fron-ends were not on the CME list.

    So I want to ask traders, from their personal experience, is this certification stuff bullsh*t or it is a real issue?
  4. Your quotes in busy periods are more accurate with a certified brokers who is connected to the exchange.

    It costs the brokers $$$$ to have a direct connection to the exchange. Stick with brokers who have a direct connection.
  5. Bronce


    What do you mean by direct connection? Direct access or DIRECT ACCESS?

    I initially assumed direct access (I have some trading experience with stocks).
    Or you ment DIRECT ACCESS ala CME Globex Trader Direct which provides access over a frame relay data connection?

    (as I said, I'm not much into it so have to go over it - as I see it there are 2 types of direct access: direct access over the internet via VPN through customer's ISP, and DIRECT ACCESS over a frame relay data connection between the customer site and CME. That's why I asked you what you ment by direct connection)
  6. if the ISV is a certified distributor for CME, they have direct gateways to the exchange. this costs more, but the date feed (quotes, orders) are considerably faster that an ancillary distributor. these secondary distributors purchase a gateway from another distributor. this slows downs their quotes and orderflow.
  7. Bronce


    I guess that's possible for US only...
  8. No. It is not limited to US only. CME and all the major exchnages have gateway hubs all over the world. therefore, trading in london or tokyo or chicago should be at effectively the same speed.
  9. rover