Routing: BATS vs. BYX vs. BZX?

Discussion in 'Interactive Brokers' started by Love2Trade$, May 28, 2019.

  1. Hi Order Execution Warriors!

    Can someone please tell me the difference between these 3? I tried to reconcile the TWS site w/ the CBOE homepage site w/ multiple internet searches - without a firm final breakdown. I trade only equities, mostly extended hours, and am trying to understand the differences between these three to help develop my own routing methodology & for general market structure comprehension.
    1. BATS: TWS routing symbol (BATS), stocks/warrants/options, not on CBOE site
    2. BYX: TWS routing symbol (BYX), stocks/warrants, equity exchange on CBOE site
    3. BZX: No TWS routing option, options but some stocks too right? b/c listed as an equity exchange on CBOE site
    4. How do the 2 U.S. equity exchanges (BYX & BZX) match up to the TWS symbols (BATS & BYX)?
      1. Does BATS = BZX?
    Links:
    1. TWS Exchange Listing: https://www.interactivebrokers.com/en/index.php?f=1562
    2. CBOE Exchange Listing: http://markets.cboe.com/us/equities/overview/
    The universe has promised no drawdown today for whoever answers this! Thank you!
     
  2. Robert Morse

    Robert Morse Sponsor

    dealmaker likes this.
  3. Would love to, as soon as you guys start offering access to other markets. I can't see a single scenario where someone would want to limit themselves to a single market because of broker limitations. Not a wealthy individual who invests and needs to be diversified. Not an active trader that looks to trade currencies, index options or futures, not a retail punter who trades stocks. The age of the day trader who trades his 5-7 active stocks is long over. Also, having money at risk with a broker of small size is a credit risk that is a multi times that of larger outlets.

    I like your attitude and belive you are a good and responsible salesman. Also think your firms offering re software and execution UIs is solid. But your firm stubbornly refuses to expand in terms of product breadth. I would give you guys a chunk of my assets in an instant but can't because the product range you guys offer trading in is so 1990s. Who trades only one market if they had the ability to trade internationally diversified markets unless they are some ex floor trader dinosaurs?


     
  4. Robert Morse

    Robert Morse Sponsor

    I appreciate your response. The reality is that most traders and small to medium size hedge funds focus on a single market. We try to do one thing, and do it as well as we can, and for now that is the US market. International has a lot of hurdles and is not a priority for us and our growth. We are hoping to add universal accounts, equities/Futures and then fixed income later in 2019.

    Bob
     
  5. Robert Morse

    Robert Morse Sponsor

    One more comment. I do think this market is not growing but we are attracting both Manual and automated traders to our platform as that is what we excel at. We are also pushing more and more into Futures. We offer a retail type future offering with efutures and target more active futures Accounts in the Lightspeed division.

    What makes me different than other sales people is that I was first and for most a trader and have a deep understanding of what traders want and need vs pushing our offering.
     
  6. Hmm, perhaps I am so focused on maco that I hardly come across another hedge fund that would ever focus on a single market. Even hft never just engage in a single market.

     
  7. Again, I am convinced of your experience and attitude to client services. It's more that it all looks a bit scattered, non-integrated, plugged together here and there when looking at your firm's products. Perhaps it works for some and all the power to them.

     
  8. Robert Morse

    Robert Morse Sponsor

    That is where having more than one relationship comes in.
     
  9. Well, I guess my relationships are pretty diverse from 13 years at various banks and hedge funds, having worked on the market making fixed income side (caps/floors/swaptions), prop equity derivatives for one of the past largest's bank prop groups, prop currencies and futures, then quant trading in all asset classes other than cash bonds. Also plenty relationships with hft houses. All those in multiple geographic locations including US. Not sure how much more diverse it can get. I know of not a single larger fund that limits itself to one single market. Can you name a single AUM 1bln+ hedge fund that focuses exclusively on the US market? Would love to see because I never heard of any. Perhaps you are focused on retail traders based in America and hence that stance?

     
  10. Robert Morse

    Robert Morse Sponsor

    No, I won't name any clients. I'm also not sure if a 1bln+ hedge fund would custody with us, but they use us for execution and Prime at a larger bank. They might custody at Wedbush for a manager. We have had 40 act funds do that.

    My target market for Hedge funds are smaller than $250mm and are typically under $25mm. I care more about the transaction side of the business than the banking side.

    This has taken the thread too far away from the question asked.
     
    #10     May 28, 2019