Is CBOT changing order fill preference?

Discussion in 'Financial Futures' started by cornholetrading, Nov 29, 2005.

  1. domi93

    domi93

    Those are time and sales for the reduced tick spread, because it is rollover. The 6000 is being executed in the quarter tick spread, not the outrights, but it prints the outright leg prices used for the spread. Put up both the Dec and March time and sales next to each other and it will print in both simultaneously if it is a spread trading

    Mcurto, Brilliant! thank you very much.
     
    #11     Nov 30, 2005
  2. >>The 6000 is being executed in the quarter tick spread, not the outrights..>>

    Thanks for the clarification!!!
    :)
     
    #12     Nov 30, 2005
  3. milstar

    milstar

    Gentlemen

    CME ES,ERT,EMD,EN -FIFO
    FX future ?
    SP options ?
    ES,ERT,EN options ?

    CBOT EYM -FIFO

    Eurex FDAX FESX ?
    Options FDAX,FESX ?

    Liffe LX(LFT)
    IX(GMCT) ?
    options LX,IX ?



    Authro would very pleased for answer.
     
    #13     Dec 1, 2005
  4. You know, you can do the research yourself.

    Every eletronic exchange have published their matching algorithms in a publication or another, it is just a matter of looking for it. The CME, CBOT, LIFFE production descriptions directly describe the electronic algorithm itself. I haven't looked at Eurex enough, but certainly the Russell 2000 and bond futures on Eurex-US is FIFO.
     
    #14     Dec 1, 2005
  5. Pabst

    Pabst

    Didn't the CBOT several years ago (or longer) when Project A was their electronic platform use an algorithm that was a blend of FIFO and size priority? If my memory serves correct it was the best of both worlds because it preferenced large orders on an trade allocation basis without forcing the early small participant into the back of the queue.
     
    #15     Dec 1, 2005
  6. mcurto

    mcurto

    Yes, I remember reading something about Project A using both and I believe it used some type of notice for the participant as to where he was in the que if he was the one showing the largest size. Not exactly sure on the notice part, but Pabst is right Project A did use a blend of both.
     
    #16     Dec 2, 2005
  7. #17     Dec 2, 2005
  8. mcurto

    mcurto

    In the interest rate complex, the pro-rata algorithm is only applied to the Fed fund futures, Swaps, and Munis, while the price/time priority (FIFO, what is used now) is applied to all Treasury futures (except reduced tick spreads, which are also pro-rata).
     
    #18     Dec 2, 2005
  9. Hi All,
    From going through these posts, it would appear that a lot of uncertainty exists about which allocation method(s) is or are really used in determining queue priority.

    This is a point to watch very carefully though. If not, we all may end up by seeing featherbeds prepared for out of work exchange "specialists", enabling those to push "big orders" ahead whenever they see an opportunity to prune some bunch of suckers. This supposes that such "members" could peek at things that others can't see. Who is going to guarantee that this is NOT the case with today's computer technology, especially if such "members" operate from offices in or near the exchange itself.

    I didn't mean to say that this is actually hapenning but talking about priority algorithm change, I believe it to be sensible to prohibit anything but ABSOLUTE FIFO priority, given the impracticality of policing hanky panky. In the olden days they could at least put some FBI agents around the pits. How can you still determine who is looking at what in computers?

    nononsense.
     
    #20     Dec 3, 2005