Recent content by 489

Classic ET! Who cares about quality of execution, its the commission that is the most expensive portion of the trade. Too funny.

Nope. Wrong.

The is no such thing as a dark pool for options. All electronic option orders, whether spreads or single leg, MUST be publicly exposed for a short time and are eligible for price improvement. All option orders are also subject to resting public interest on the book and cannot just be printed at...

If the SEC was really serious about protecting the market from HFTs they only need do one simple thing; make the minimum tick for all stocks a penny. Today I tried to pay 97.61 for a measly 1000 shares of GS, and got a 97.60999 fill. Some frigging exchange/ECN will call that 'price...

OK, I misspoke by saying cross margining when I should have said offset; mea culpa. Offsets are indeed applied to contrasting positions in similar (i.e - hedged & correlated) securities such as indices and non-narrow based ETFs. The 15% requirement in single name stocks you reference is again a...

RegT is rules based and PM is risked based. Therefore PM will look at 20-30 different risk arrays and choose the most expensive one to apply at any given time, which can change from one to another many times intraday. Since PM is meant for portfolios with many different underlyings so the...

Ahhh, gotcha. That is not good. My experience with IB is from the stock and options side, which trades in more size and is likely more liquid than most futures so I don't have that problem.

I know that they offer their platform as a white-label option to introducing brokers and advisors, but don't know why a prop firm would care whether the front end, reports etc. was labeled as IB or their own firm.

WRONG. IB allows the master account user to create pre-trade allocation instructions based on net liq, avail equity, percentage increase (opening)/decrease (closing), equal volumes, and even named volume sizes amongst the sub-accounts. Furthermore, you can have different groups that include...

IB isn't for sale, now or ever...period. And don't confuse a low stock price, which is basically a popularity contest, with the cash stream generated by ongoing operations and the current ~2+% dividend. Regarding his retirement, TP said something like "why would I ever sell something I love...

+1

Retail clients do not benefit from sub-penny executions in any asset class. The nature of a retail order of small size (say ~1000 shares/10 contracts) means that he doesn't benefit in any meaningful way from infinitesimal price improvement. However that same retail client will be a real...

The original post referenced trading two different asset classes, stocks and futures. Keep you hedge in the same asset class that trades and settles at the same time. Also, you must realize that the auto-liquidation is a key component of IB's offering and will never be changed. If you cannot...

Things have changed and in today's fully-electronic, HFT environment where trades occur in milliseconds, bust/adjust and auto-liquidation rules must be pre-programmed. Today brokers no longer have the luxury of calling clients to ask for a check that may never be forthcoming. When NYSE goes...