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Anyone have an idea which market-maker stood to benefit from the manner the liquidation occurred?

Reply to Luh3417: So we will "spill the beans" regarding the other section a little earlier than expected. What would have been needed was liquidate first, not liquidate last. That was something that the auto-liquidate was supposed to handle. When you mention about heading for a fall...

To paraphraase, here are some of key theme questions relevant to my partner's misunderstanding with IB. I would love to here feedback. Caption 1: "How a $2k intraday cash shortage led to $500,000 in option positions being broken down." Caption 2: "Does a broker's right to reduce a client's...

I mentioned on the link of "Danger of IB: True or False?" that liquidation in my partner's account had just occurred of over 200 box spreads due to the auto-liquidate software. The total net loss seems was $11k. IB had encouraged to file a complaint to enable them to review it. Although some...

Any company can have a problem; the way the problem(s) is resolved is the issue, and it will go far beyond my personal considerations.

Only about a week has gone by. In spite of all the assurances made, exactly what we were afraid of occurred by IB but with a different twist. Their auto-liquidate system tore down 230 box spreads midday, and not because of a maintenance issue, rather because of a change in the intraday net...

My own conclusions: Gigantic stocks are much harder to manipulate, also if the market is going in the wrong direction. Big open interest on puts is a better indicator than big open interest to calls, as you don't know if those who manipulate bought or sold the calls.

1) The information has come in an e-mail exchange between IB and a person I referred to them. I saw the e-mail personally. I am quite sure that Def would confirm the same, i.e. arrival of your statement does not indicate the results from the OCC came through already. | 2) I hope you aren't...

Your missing my point: even if "good chances" are sufficient for you(re: not getting midday assignments) , you don't get "good chances" unless you check your account each day at the opening bell. I was told receiving the statement is not sufficient. IB won't necessarily hold back their...

Are you suggesting you always do or don't always get your statements before the OCC reports the assignments?

What is not an issue?

Seems we have been told different information. I hope this is resolved; regardless, the issue is moot, because IB still sends statements out in many cases before reporting of assignments occurs from the OCC. (If the statements are sent out extremely early, I was wondering if that would indicate...

Def, my apologies. For IB's and the customers' protection: I was in contact with someone who checked into this issue carefully, who says the only way to know about an assignment is by actually logging into the account, and there is no indication on the statement as to whether or not there was...

What I meant about benefiting from your post & from WIlburbear's: even if it's not millions to piggy-back MM's, I induced from your comments it would minimally mean real good $, presumably a good chunk of the programming costs to not have problems with the exchanges yet to still have quality...

Important you added this clarification. Of course one should be noting the amount of time premium. Puts the day of ex-dividend, and front month options even not so deap in-the-money as well are more likely. Looking at the number of outstanding in-the-money options with low and no time...

To Riskarb and Wilburbear: Thank you. I benefited from your postings. To riskarb: Just for the record: There are institions that ride the backs of the MM's (and they get their bids in first). It would seem to me that technology would not cost millions. Agreed? To Wilburbear: To the best...

Thank you Def. I am not sure what paragraph one means, i.e. if IB accepts responsibility or not to allow a grace period if there is a wide scale delay and a midday assignment occurs. IB is in a better position than anyone to assess the frequency; assuming it is rare, there should be little...

1) Does "liquidate last" allow you to specify e.g. 10 positions, and leave 1 or 2 as candidates to liquidate? 2) Reading minds is not the point, rather finding the leg which causes the biggest margin problem, which IB seemingly is claiming the auto-liquidate achieves. 3) It is not close to...

That is IB's own system. To the best of my understanding, some exchanges don't have that restricition, and that the problem is successive orders to the same exchange.

To: dont You are right regarding the selling side, but on the buying side, you get that right To: Murray The spread between bid & ask concern can actually be reduced by waiting till there is a $.20 gap (i.e. re: options above $3.00 and $.10 increments), because then the real value is closer...