Why Does IB Still Not Offer ECN Pegged Orders?

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From a retail perspective, you have it really good with IB. You could always go to someone like Genesis who does not cross orders, but I don't know much about them at all.

No affiliation to either (i have an acct at IB) but I hear Genesis offers fast execution and has the same rules & regs as IB except $25k minimum for PDT requirements. Other than that you really can't avoid the order internalization from a retail trading platform. They all do it.

 

Thanks...

Any ideas how genesis api compares with IB api.

 

You clearly haven't done your homework when it comes to IB routing and your ignorance shows. If you are going to make such a comment, back it up with facts. IB's SMART routing is designed to provide the best fill. If you want to read a little bit about the firms view on the topic, you may want to read this: ttp://www.interactivebrokers.com/en/p.php?f=news&p1=news&ib_entity=ibg . Nevertheless, if you don't like the SMART routing, you can route directly to the exchange of your choice.

In addition, how about you go to the source, type your broker's name in google along with 606 and see where their orders are really routed.

 

So why have two Norwegian traders been convicted of outwitting your algo?

 

I am unable to comment on this legal matter other than to point out it had nothing to do with the IB brokerage. Keep this on topic.

 

LOL!!!!!!

 

The verdict has been given. You are free to comment.

 

I am the OP of this thread and it is not about bashing IB in general or about their Norwegian traders case. Lets stay on topic.

However, this thread is about trying to understand the reasons why for at least 5 years and to this day, IB has denied access and continues to deny access to native ECN pegged orders, and only offer instead their own handicapped "RELATIVE" order which does not rollback as the NBBO becomes less aggressive.

Specifically, in reply to your comments above Def, i would say:

1. RELATIVE orders do not "provide the best fill" compared to native ECN pegged orders mainly because they do not "rollback".

2. In this case, it is not true that "if you don't like the SMART routing, you can route directly to the exchange of your choice". In this case, if you want to use pegged orders, you cannot simply route a pegged order to the exchange directly because IB does not allow sending of native ECN pegged orders. In this case, the customer has NO CHOICE but to use the IB's inferior relative order.

 

I can tell you that Genesis allows sending native ECN pegged orders, while unfortunately IB does not.