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ISLAND refined their rule to a more sensible one. It will be 2 decimals for stocks over 2 USD for wednesday 2/23/2006.

Are you interested in figuring out what is going on? Or is your goal to throw stones. I am not making excuses or other b.s. and have no interest in spending time in that mode of communication nor in playing goalie while you take shots. My ping times from Europe to both servers you mentioned...

That is correct. CBOE rules assert the minimum, not the maximum. The true cost to close out the position for american option boxes can be greater than the strike difference and a proper risk mgmt approach would require the position holder to have at least as much money as would be required to...

I agree 50M is not the problem. I was just using it as an example. The problem will be when 300+ hits at a time when the liquidity is delicate. The Oanda model isn't really comparable since Oanda is reflecting their own price/risk sensitivity, not the liquidity providers'. I am reasonably...

The liquidity providers are not oblivious and are definitely not stupid. They pay close attention to their incoming order flow and look for patterns. The main thing (I think) they look for are parties who spread a large order through multiple channels trying to take in more than what the real...

Timber Hill and IB act at arm's length. The only preferential relationship is in terms of US options/US stock routing where IB can route to TH as specialist when TH is on the NBBO. This is disclosed on the website at...

While I am not in a position to doubt your numbers as I have not measured them personally, the latency figures you quote seem improbable. 40ms, for example, is the time it takes to transit just to a typical ISP. Unless you live some short distance from the servers and assuming you go through the...

We will notify other clients who have affected positions. As you are already notified with the explicit formula, there is no additional point to notify you again, is there? example: strike difference = 10 points market prices the box at 10.5 margin (in points) will be =MAX(1.02 * 10.5...

10:06. It is real time.

if you didnt have the $$ to meet NYSE maintenance margin, then yes, liquidations would commence at 09:40 EST on the next business day. You would have 10 minutes to cover the positions yourself (from 09:30-09:40)

The changes will be made as soon as possible and will be released without additional explicit notice as you are now informed. You can expect the change to go in no earlier than tonight but more likely over the next weekend. I do not know how long the improved margin model will take to insert...

An interesting fact was uncovered as a byproduct of this thread. IB's margin for box positions on american exercise options is too low. We are requiring only the strike differential, which is fine for european exercise options but lower than the cost to close the position which is the minimum...

IBsoft's comment refers to the worst case. The median experience should have been under a second. In April 2005, we had fewer liquidity providers (I think there were 2). Now we have 5. Every system suffers transient latency, but the median latency with more providers drops exponentially...

CAD/JPY: I'm surprised it isnt already there. will add. MXN, SEK: coming soon. A few weeks. SEK margin: it is high, but not inappropriately so. Look at the GLOBEX rates relative to other currencies. HKD margin: in theory, HKD is tied to USD so empirical volatility is miniscule. But...

Please don't misquote me. I did not state that it is random, nor did I state anything about liquidating according to the ratio. The 50:1 ratio is just the definition of our maximum position size relative to net liq. Above this ratio, we will act; below it, we don't. The control algorithm...

hoi correctly suggests that you can switch base currencies to lower your overall margin burden. No real currency conversion is required or occurs. The notion of base currency is more tied to the banking functionality than to trading. It expresses the accounts preferred expression of...

Hmmm. Don't know. I'll try to find out.

No, the checks are made prior to each liquidation cycle. The example shows why the GPV ratio is repeatedly violated when there is a change in a mxiamlly leveraged portfolio. As the position value changes due to the unfavorable marks resulting from market orders, the maximally allowed position...

The account window shows margin, both current and look-ahead. It also shows the GPV figures, day-trades, etc. It may not be the perfect information source but the information is displayed in a way that makes capital and risk mgmt quite straightforward. We have margin alerts on the queue as well...

IB will take back improper liquidations. If a bad price or other transient gets through our filters, we will pay the bill. If there is a tick that is slightly off and that small difference results in a liquidation, then we don't. It is basically a "reasonableness" test. IB cannot be expected to...