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:D I think he means he wants someone to write to the API, not to develop the API itself.

I'm pretty sure you're correct, but my memory of these issues is a bit foggy as all of mine are handled by software now. I found that even the commercial software sometimes disagrees on the interpretation of the rules in certain complex cases (not that the case you pose is complex). The best...

I'll be interested in seeing whether they can get significant volume. That looks even higher than payment-for-order-flow arrangements, which are supposedly around .001/sh. If it takes volume from PFOF, great -- I hope to see something break the stranglehold the 5 big payment-for-order-flow...

I thought it was a pretty poor article, even if the research behind it might be interesting. The title implies that the idea originated with some nefarious hackers, when in fact the article is based on a "whitepaper" by someone likely trying to sell their services. I doubt it has any...

So how exactly does Timber Hill show this "willingness" without either internalizing or setting the NBBO? This looks an awful lot like "internalizing flow to TH" to me, no matter how you spin it. If IB's goal was to get clients the best fills, they'd send it to an exchange posting the best...

Evidently you disagree with what's posted on Interactive Broker's own Web site:

NxCore provides this in full feed form, for maybe $500/month (or somewhat more) minimum, and more depending on how many markets you're looking at (equities, options, etc.).

A Merry Christmas to you, too, Don! And a Merry Christmas/Happy Hanukkah/Happy Holidays/etc. to everyone on ET!

If it were only your broker giving away money after an execution that was routed to a public market, that would be true, but in the case of a broker routing orders to itself, no, because it's price improvement coupled with internalization. Internalization changes the bid/ask/price you would...

Yes, and I think most at the SEC would agree with you and would like to see all internalization and payment-for-order-flow banned. Trading against one's own clients certainly represents a potential for conflict of interest, but it even goes beyond that to damaging the health and transparency...

Here's something I believe: That's internalization in what is perhaps its purest possible form -- even more so than payment-for-order-flow. And without any guarantee of "price improvement". Such internalization does worsen prices across the market, as argued not only by the academic...

That's a bit of a non sequitur. So you're changing your tune to "IB's internalization isn't as bad as the other guys'? Not only am I inclined to agree with this, but that was what I said in the first post to which you replied with vehement denials. Whether "internalization" or "less-bad...

How exactly is "being able to fill at a better price than the best available price" any different from anyone else's internalization? What difference does it make whether you call it a "first look", "second look", or "100th look"? Any way you slice it, it still looks to me like internalization...

But then how does your Ponzi investor know how to time it? It's just like penny stocks run up by promoters -- only the insiders know when the crash is about to come. I took a look at the talkgold site and was simultaneously amazed and saddened -- a site that has over 100000 members and...

And by the way, I've never seen your competitors discuss IB's internalization of orders. I looked into this myself when I noticed a number of "fine print", IB-specific fees/rules which seemed to me subtly designed to discourage IB customers from competing with IB's own Timber Hill unit, after...

How is my understanding wrong? Your post seems to confirm that IB's behavior is precisely internalization; if not, then what is it? My definition (and the only one I've seen) is that B/D internalization is when a broker takes the other side of a customer order. Are you trying to sidestep this...

Of the firms that will take $1m, I'd say ones to check out include Fortis Brokerage (now owned by CS?), MFGlobal, and UBS. You would need to phone this type of firm and talk about what you want to do to get pricing etc. It's my understanding that IB may internalize your order flow (they call...

Your broker has to add the routes manually in most such installations, I think -- ask them about it directly, and they can probably add the routes you want. As for using floor brokers to trade US equities, may I suggest using a time machine? That era is history.

At one time, NASDAQ Options stated explicitly in their documentation that anyone could post a bid and offer simultaneously in the same contract. I'm not sure whether this is still true and I've never actually tried it. I'd assumed that IB doesn't allow it for any exchange (including ones...

This (sort of) makes sense to me, in the following (possibly incorrect) interpretation: a GTC order is not generally offered by modern ECN's (as the book starts clean every day), so the broker "simulates" it by resubmitting a day order every day, which may then cross an existing order (as...