Options Order Transmission on IB API

Discussion in 'Automated Trading' started by drjekyllus, Feb 6, 2009.

  1. I am trying to get the IB API to submit and transmit an options order; however, it will only load the order on the TWS API page and it requires me to manually hit the 'T' on the TWS to make the order transmit. When I try to place a stock or futures order I don't have any problem with the API automaticly transmitting and executing if I get my limit. It seems this issue only occurs with options.

    Does anyone know how to make IB API transmit an options order without hitting the 'T' button on TWS?

    Thanks.
     
  2. This is a requirement by the CBOE, options cannot be "automatically" traded. There must be a human link in the chain and this is how IB has chosen to do it.
     
  3. I figured it was something along those lines since my stock and futures orders transmitted without a hitch. Thanks Norman.
     
  4. This is a fairly recent change (last year or two I think, I don't upgrade API often). They used to just have a popup that had to be closed. It was easy to close with some code and transmit orders, as long as you didn't violate Pacing.

    I don't use those strategies anymore, but you might be able to come up with a way to click it with an app like AutoIt. Could be tricky and unrealiable tho. Could get you in trouble I guess too, if they somehow found out.

    The Yahoo TWS-API group may have an aswer.
     
  5. No, its not it. There is a bug in one of their TWS versions that does it. I use version 887.2 that does not do it. Call their API support and they should direct you to the version that does not have this bug.
     
  6. Interesting. I use 888.3 and a recent API (forget which). And you say your works fine? I may have to upgrade.

    But automatic option order transmission from retail is still "not allowed" is it?

    CBOE Regulatory Circular 00-139:

    SEC Approval of Prohibition Against Electronically Generated Orders

    Date: September 15, 2000

    To: Members and Member Firms

    From: Equity Floor Procedure Committee


    The Securities and Exchange Commission recently approved a CBOE rule filing (SR-CBOE-00-01) that adopts a new Rule 6.8A. Rule 6.8A provides that members may not enter nor permit the entry of orders into the Exchange Order Routing System ("ORS") if those orders are (1) created and communicated electronically without manual input and (2) eligible for execution on RAES at the time they are sent. An order is eligible for RAES if: (1) its size is equal to or less than the maximum RAES order size for the particular option series; (2) the order is marketable FN1 or is tradable pursuant to the auto step-up feature 2 at the time it is sent; and (3) the order has either no contingency or has a contingency that is accepted for execution by RAES. Electronically generated and communicated orders that are eligible for execution on RAES at the time they are sent may be sent to the trading floor for execution by means other than through ORS, e.g., by telephone or through a member firm's proprietary routing system.

    Questions concerning this circular may be directed to Timothy Thompson, Legal Department at (312) 786-7070.


    Footnotes
    FN1. As defined in Rule 6.8, a marketable order is a market order or a limit order in which the specified price to sell is below or at the current bid, or the specified price to buy is above or at the current offer.

    FN2. An order is tradable pursuant to the RAES auto step-up feature if the appropriate CBOE Floor Procedure Committee ("FPC") has designated the class as an auto step-up class and if the National Best Bid or Offer ("NBBO") for the particular series is reflected by the current best bid or offer in another market by no more than the step-up amount as defined in Interpretation .02 of CBOE Rule 6.8.
     
  7. I transmit my FOP orders through API every day. There is no confirmation needed. It's their bug. Trust me.
     
  8. MAESTRO is right. I upgraded to the most recent version and I just executed an option order as well as an option calendar spread directly from the API. I guess that will teach me that I should run the most current version.
     
  9. Good to know, thanks!
     
  10. I have been running their API for at least 10 years. I know every corner of it :D
     
    #10     Feb 6, 2009