Order on both side of same market

Hello,

recently I recognize that it's not possible to have a open order on both sides of the same option contract (CBOE). The TWS says:
"You Cannot have open orders on both sides of the same US Option contract".

What's the reason for this?

Thanks

 

Only market makers are allowed to do that.

 

Hi,

and why is it at EUREX allowed or with Futures?

Regards

 

I don't know, it probably has to do with exchange rules or something.

 

O.K, so it's not a IB issue but rather the exchange sets this rule.

 

Weird, most European exchanges (e.g. LIFFE and EUREX), are perfectly happy to let me sit on bids and offers simultaneously. Moreover, I can also do the same with Eurodollars on the CME and trsy futures on CBOT.

 

As far as I know, it's not an IB-specific issue.

EDIT: You can try asking CBOE/OIC why this is the case. They promptly answer questions.

 

Right and that's why I wonderd that CBOE doesn't allow it.

 

@MTE

Right, I'll do that!

 

Did you get any updates from the exchange?

My first initial guess was that this is an issue with platform. I would be very suprised to find exchange specific rule(s) for not allowing you to provide liquidity.

Also, it doesn't make sense from a business practice since a prop trade maybe trading under some firm ID that is shared by another desk. That means no one (another trader) can take the other side. That just doesn't make sense.

I am keen on hearing what the exchange rule(s) are. Which broker do you use?