This is exactly the activity level as mentioned in the footnote of this page http://ibkb.interactivebrokers.com/node/1343
That's IB major problem. You can't do some kind of passive quoting because you will reach their OER immediately.They implemented this policy back in fall 2010. At the time I had an automated system generating about 1/4 of my income and IB put it out of business instantly...This year I try some new stuff on stocks, Boom, here it is again...I am at second notice...Curious to see what will happen to you 3rd notice offenders...LOL
Since IB is so big, if they let everyone go crazy with their OER, maybe it eats significantly into their bandwith or possible fines from exchanges? Just guessing here.
IB mentions that in this article: "IB’s order management and routing systems are negatively impacted when the volume of orders submitted by clients is significant relative to those which are actually executed. Left unchecked, unproductive orders have the potential to slow system performance, adversely impact other clients and increase capacity requirements and costs. To minimize the load of such orders on internal systems and to comply with exchange policies, certain of which impose a surcharge for excessive messages, IB monitors order activity and may place restrictions upon clients who routinely submit a disproportionate number of unproductive orders." http://ibkb.interactivebrokers.com/node/1343
Resurrecting this old thread, how did the posters get on with the IB and their OER? I'm now getting this problem and wondering how others resolved it. Can anybody using Lightspeed confirm this is not a problem with them?
Craig66, Are you a current client of Lightspeed? What is your specific question? You can call me after 7:30 am ET if you want.
Hi Robert, Answering your questions in order. * No * Does Lightspeed place any minimum fill / send / cancel ratios on API clients.