What is this Notification about?

Dear IB Trader:

Recently the US Options Exchanges imposed fees for the cancellation or modification of option orders. As such, IB needs to pass these fees on to our customers. Effective Wednesday, November 13th, IB will charge $1.20 for each US directed option order cancel or modification. This fee will not apply to smart routed orders. For each option order that is executed during the day, IB will provide a credit of $1.20 against the cancellation/modification fees for the day.

Interactive Brokers

 

It means if you submit an options order routed direct to a specific exchange, then cancel that order, there will be a fee of $1.20 for the cancellation.

Each executed order will cancel out one cancel-fee from the same day. So if you get one trade for each cancelled order, there's no fee charged.

If you route your orders through SMART there's no cancellation fee, as of November 13, 2002.

 

Can OEX options be routed via SMART?

Thanks,
wally_

 

My TWS gives the choice of SMART or CBOE for OEX.

Not much reason to use direct route when there's only one exchange choice anyhow! You'd be paying an extra $.95 for nothing

 

If i get filled without cancelling any order, will i still get my $1.20 credit ?

 

Doesn't something just jump out at you and strike you odd about all of this?

 

Yes, they can. Works fine. 1$ per side per contract.

 

Unbelievable, why is the ISE going along with this? Is the BOX going to do this as well? IB are doing everything to control the order flow by encouraging you to use SMART. Luckily cancellations from PHLX where Smart has been sending a lot of my orders has been quick lately.

 

This is an old problem; these fees have been in place for around 18 months ...

 

Ise doesn't charge. Its Amex,pse, and cboe.