What has happened to the free arb at the pHLX? I am using IB smart routing and when I have to cancel an order at the PHLX it is doing so immediately. Not lon ago that would take several minutes. Trading BRL.
I've been getting quicker cancels on PHLX and I think it's a deliberate attempt to improve cancel times from the two minute delay
You should also keep in mind that IB does not change the exchange field of an existing option order when it gets re-routed. For example, you initially put your option sell order at 1.95 through SMART and it gets routed to PHLX, then you change the price to 1.80, and it happens to be re-routed to ISE, but the TWS will still show PHLX (it's kind of a bug, isn't it?). If you now decide to cancel it, you will get a fast confirmation, since your order is really on ISE and not on PHLX anymore.
Cancels for me on options were always < 2 seconds via Philly. I now keep a running log via an order monitor to see how long it takes me to cancel an order no matter where I place it. The more info the better.