The strangest thing happened today--I wasn't able to create a vertical spread or any other recognized spread type. The following procedure has been done by me for a year without any problem: I right-click on a blank line in TWS and click "generic combo." I enter the underlying "ES" and the exchange "GLOBEX." Then I select the "single tab." I select "vertical spread", then sell combo. I enter my legs. I typically trade bull put options, so one leg shows selling 1 put near the money and the other leg shows buying 1 put further out. Both legs have the same expiration date. When I click to set it up, I get a message: "This combo can only be executed as Non-Guaranteed." Well, I proceeded to create the combo. The legs appear correctly, but the spread line is different. It shows "Smart" as the exchange (not GLOBEX), and there are no quotes appearing for the spread. If I try to enter my own quote, I get another message--basically I can't execute the spread. As a matter of fact, I tried several recognized spread types, and they all were treated as above. I send a message to customer service inquiring. Has anyone else encountered this problem?
Globex doesn't natively support the spread. In fact, of all the FOPs I trade on globex, I've always had to leg in the spreads. Annoying and potentially costly.
Got an email a while back, from a CME/GLOBEX rep stating that GLOBEX used to recognize just about any spread imaginable. Since 90% of those exotic types of spreads are hardly used, GLOBEX eliminated all but the most common/popular. I have traded, in the past, short straddles, bull put spreads, and short IC's. I have always used the generic combo feature. when I received this email, I had to adjust the way I put together my IC's, but the created spread worked. Prior to yesterday, I never had a problem with any of my spreads--creation or execution. Now, I know that vertical spreads--sell or buy combos--are recognized option types by CME/GLOBEX. I even used the "single" tab that let's me chose "vertical spread" and "sell combo" from the menu. It should work. Interestingly, none of the spreads listed in the menu work, and they should. I will wait for an explanation from IB. I will probably email CME/GLOBEX to confirm. lastly, I noticed that IB just updated TWS, and this problem may be a bug. I will try a previous version too.
Tried the previous version, and I am able to create and execute spreads like before. Therefore, must be a bug in the newest version. Again, will report when I hear back from IB.
UPDATE: IB has fixed the bug. Now, it is possible to create and execute any GLOBEX recognized spread, as well as spreads for the stock exchanges.