WTS internalization

Discussion in 'Prop Firms' started by traderefe, Apr 30, 2013.

  1. Any traders aware of the new internalization rules applied by WTS.

    Seems that to eliminate wash trades, fills between traders using WTS are hit by a flag XA9 or XR9 and instead of getting a rebate will pay a $1 per 1000 shares fee.

    Has anyone noticed this in their accounting, and if so what % of fills does it amount to.

    Is this temporary or for keeps.

    I trade mostly for credits and this will affect my P/L significantly

    I'd appreciate any comment.
  2. JTMAN


    If you were smart you would realize that you could easily school that system and make it work to your advantage!
  3. guess i'm not to smart, could you enlighten me, I'd be interested in knowing how
  4. um, if both traders are paying a $1/1k, the only one's getting schooled are the traders.

    not sure how they're justifying that. it's not like they have to clear those. plus they're avoiding washes. i'd call them on it.
  5. does anyone know if they have to pay SEC fees on this? I assume they are charging them regardless, but curious if there is any reason this trade would trigger them.
  6. Please PM me.

  7. They do charge the fee even on internal routing mechanisms. I bet they are paying the SEC (or at least settling it) based on whoever is doing their audits. That's a great question which I'd like to hear an answer to.

  8. no, they don't. one of the big reasons internalizing is so attractive. if they're charging them, they're skimming.

    have a question for the OP, when you get charged these wash fees, are you directing orders to lit routes (arca, naz, etc.?), or are you using their smart router?

    if you're getting them even when you're routing to lit, then i'd rec you to run not walk from that firm. there'd be no way to prevent the massive conflict of interest they have in using that as a profit center.
  9. JTMAN


    Wrong! If a firm internalizes orderflow it is a good thing for the traders if you know how to take advantage of it. Think about....you are always in front of the line ahead of the book and the rest of the trading universe. One word on how to work this to your advantage: pinging.


  10. if your firm is charging you for hitting nqbx because they decide it's a wash and rerouting internal, then it's not a good thing. hence my question. otherwise, yea agree if you're trading against uninformed flow.
    #10     May 1, 2013