Problems w/ IB Smart Routing to NASDAQOM?

Discussion in 'Retail Brokers' started by One, Sep 23, 2008.

  1. One


    I've recently noticed that IB Smart is often routing options to NASDAQOM which often seems to cause problems on fills. For example, yesterday in some of the SPY options I trade:

    1. the bid/offer spread at NASDAQOM was ten times larger than at most of the other venues;

    2. several times the best bid (offer) traded up to and even through where I was selling (buying) for and extended period with no fill;

    3.twice when the bid at several exchanges matched my offer on NASDAQ, I was only filled after the best bid traded through my offer and then both times at the lower price.

    Direct routing is obviously more expensive on IB than many other brokers, so I am wondering whether there is a way to exclude NASDAQOM from SMART Routing. Thanks for any insight.