Why Does IB Still Not Offer ECN Pegged Orders?

Relative and Passive Relative order types are both Primary Peg orders. IB uses a slightly different convention from Nasdaq (ISLAND), where the REL order’s offset is always making the order more aggressive, and the PASSV REL does the inverse.

MID-Point peg and Market peg were already available in TWS, and were always native.

Order type details are here:
http://www.interactivebrokers.com/en/p.php?f=orderTypes

 

DAV-

Thanks for keeping us updated.

If I understand correctly though, after these additions IB still does not offer a positive offset Primary Peg order that will rollback in any form....is that correct?

 

When you say the TWS versions of Mid-Point Peg and Market Peg are "native", do you mean that they rollback to the trader's benefit as the NASDAQ versions of these orders do? My impression is that IB's versions of these orders offer no rollbacks whatsoever; as an example, in the IB version of the Mid-Point Peg, if you're pegged to the midpoint as a buyer and the midpoint moves down, your order would not move down with the midpoint. Is my impression here correct?

 

"For a buy order, your bid is pegged to the NBBO midpoint, or set less aggressively by the amount of the offset, if the offset is used. If the midpoint moves up, your bid will also move up. If the midpoint moves down, your bid will also move down."

http://www.interactivebrokers.com/en/trading/orders/pegmid.php?ib_entity=llc

 

OK, how does IB's Pegged-to-Market work in connection with changes in Bids/Asks? Let's say that as a buyer you're pegged to the Ask - .01 and the Ask moves down. Does your buy order move down with the Ask or not? Similarly, let's say that as a seller you're pegged to the Bid + .02 and the Bid moves up. Does your sell order move up with the Bid or not? IB's support documentation is unclear on this, so please let us know...

 

>If I understand correctly though, after these additions IB still does not offer a positive offset Primary Peg order that will rollback in any form....is that correct?

Positive offset relative orders directed to Island will roll back.

>When you say the TWS versions of Mid-Point Peg and Market Peg are "native", do you mean that they rollback to the trader's benefit as the NASDAQ versions of these orders do?

When we say native we mean that the order is sent to Nasdaq (Island) and the order is handled by the exchange according to their rules, in this case Nasdaq has said that their pegged orders do roll back.

 

Nice. Are there instructions somewhere on how to submit one? It looks like the old language still remains on the site: http://www.interactivebrokers.com/en/trading/orders/relative.php?ib_entity=llc . Is it simply a matter of selecting ISLAND (will roll back) over SMART (won't roll back) with all other details remaining the same?

http://www.interactivebrokers.com/en/trading/orders/relative.php?ib_entity=llc

 

Those directions are correct, just make sure you select Island as the destination.

 

Ok, thanks. One last question...I trade under the unbundled commission structure -- will the commissions for these orders be charged according to the flat rate fee schedule?

 

IF you have chosen flat rate then flat rate applies.