Search results

Buying an EFP is cheaper than holding onto the short position as you get more interest than you would normally on proceeds from short sale.

I noticed something weird with calendar spread options orders today -- namely my order would not show up in the quote though it was at an inside price. But as the market moved, I ended up canceling it and didn't investigate enough to log a ticket.

Too bad the #s today weren't better or I would say -- if only a bit more investment in cust svc and it'd be near perfect....

The dividends editor issue is quite tricky in general (for options pricing as well).... I forget the underlying but on Tue there was something showing a 9% imputed yield on EFP bec the dividend on the preferred was added into that of the common.

As predicted given the Markman (claims construction) outcome, summary judgments have been granted in favor of eSpeed: http://www.espeed.com/articles/article20070627.pdf The following blog also references the same definition of "static" that I referenced in discussing the decision...

Assuming we're talking spot FX Q1 You are buying one and selling the other. If you don't have the other to sell, you incur a loan in the other. Note that you receive interest on the currency you bought and pay interest on the one you sold, so the difference is what you collect/pay. Note...

I have found that most folks, specialists, market makers or other traders, post only a small amount publicly. Actually I myself have switched to using reserve orders, making only 100-500 shares at most visible depending on the dollar value and also the type of equity (e.g., OTCBB has a 500...

You are not allowed to cross a U.S. listed options transaction w/o making the quote available for public execution on an exchange. My statement is ONLY for US listed options. There is no concept of putting it on the tape in options as with equities. Actually, you can hear the Citadel...

Penny options are executed on BOX. Matching customer orders is generally allowed, subject to a variety of rules, but listed options are cannot be printed to the tape like equities w/o execution on an exchange. Just like I cannot meet you on a street corner and sign over an options contract...

Thanks -- I heard that from another IB person as well (though not from customer service! You guys must be overwhelmed w/questions about EFPs.)

So I guess the restriction against market making doesn't apply to offering short inventory as TWS shows IBKR as shortable today.... (and I'm going to assume no one slipped one past the compliance dept!)

Actually, in options, you are not allowed to cross orders and print them to the tape. In options, all orders must be quoted and executed on an exchange. i.e., even if TH sees your order and wants to take the other side of it, it cannot. It must send your order to an exchange -- admittedly...

Another thought: If you transact mostly in USD securities, you should change your base currency to USD to increase margin leverage. If your base currency is EUR, you need 2% margin for the USD position on top of the margin calculation w/in USD securities.

I'm curious to know the real answer. I do know that you are not allow to make a market in your own stock, so IB cannot act as a MM in its own shares. Does offering short capability fall under this restriction? (Or perhaps to avoid falling into this restriction, you need to pass the short...

I'll admit this is a new area for me. (BTW, thanks to whomever pointed out that SSFs are not ss. 1256 contracts.) I'm assuming not MTM. Are you saying that an EFP should be identified and treated as an sec 1092 identified straddle? I am beginning to think that a good guide would be quite...

I think this thread has become confusing because we are mixing several concepts into one thread: 1. Using EFPs as yield vehicles, WITHOUT taking a long or short position in an equity. If you start flat (no position in underlying or corresponding SSF), you can "sell" (as IB has it set up)...

No worries. Either do a signature release with FedEx, or when you get the missed delivery notice, call 1 800 GO FEDEX and ask them to hold the package at the local distribution place and go pick it up.

Got it. Using a position in the future instead of the underlying. You'd probably roll the futures rather than enter EFPs in this scenario. Maybe initially use an EFP to convert the underlying position into a futures position, but then roll futures thereinafter. I momentarily misread...

So this is useful to know -- I didn't think short credit balances can be redeployed to EFPs. And like I said, on the straight cash & first 10k issues, we'll agree to disagree on the finer points. I certainly want what you say to be correct. If I observe a spread greater than 50 bp over money...

Good to know. Thanks.