Options Chatroom

Discussion in 'Options' started by hii a_ooiioo_a, Nov 6, 2002.

  1. To discuss real-time developments of stocks to play options on, during market hours, join Options Today room in the Elite Trader chat
  2. nitro


    Are you going to be there on Monday, 11?

  3. I might change the name to Options & SSF, or something like that. But I should be there.
  4. qazmax


    I have deleted my cost of carry excel spreadsheet by mistake.

    I do not want the hassle of reproducing it... does anyone have one they can post for me.

    Just a simple enter the dividend and the interest rate and have it generate the cost of carry for different strkes for given days til' expiration.


  5. November 12, 2002

    IB Notification

    US Options Cancellation Fees

    Dear IB Trader:

    Recently the US Options Exchanges imposed fees for the cancellation or
    modification of option orders. As such, IB needs to pass these fees on
    to our customers. Effective Wednesday, November 13th, IB will charge
    $1.20 for each US directed option order cancel or modification. This fee
    will not apply to smart routed orders. For each option order that is
    executed during the day, IB will provide a credit of $1.20 against the
    cancellation/modification fees for the day.

    Interactive Brokers
  6. You have got to be kidding ...
  7. nitro



    What I don't understand is - why doesn't it also affect "smart" routed orders? I mean, if this is mandated from the US Options Exchanges, then how do they know if it was "smart" routed or not :confused:

    nitro :(
  8. It's good that they notified us, in advance. Although as little in advance as possible.

    I had the impression that the reason direct-routed orders cost $1.95 was because of cancellation fees at the exchanges.

    What's the advantage to them of having us use smart? Wouldn't smart routing create more cancellations, when the system reroutes from one exchange to a better price at another exchange?
  9. They don't get a rebate on filled orders like they suggest; they are charged $1 for every cancel if their overall cancels exceed 50%. The fee from the exchanges is $1, not $1.20; unless something has changed or my memory is faulty.

    I seem to remember that the cancel fees might have been at the discretion of the DPM. If that is the case, maybe they are routing to the exchange where they are the DPM.

    If not, I suppose they analyzed their order flow and that formula fit in their business model.
  10. qdz


    oh, cancellation can make money. That's something new to me.

    Good luck. :p
    #10     Nov 12, 2002