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No, the CBOE has no such limitation, and also in other US options exchanges such as the ISE your spreads may be executed using implied pricing functionality. It is very strange to me that the CME/Globex, which is a very sophisitcated electronic exchange, still does not support such...

Are you sure the SPX has only one market maker, or the SPX is traded only on one exchange (the CBOE) but may have more than one market maker (such as the market makers that operate in the CBOE)?

Hi, I made a position transfer (US options) between brokers, and in the realized gains/losses that I see in the first broker's tax report I see that the transfer was recorded as a closing transaction and not as a positions transfer. So that, for example, if I originally shorted an option for...

Thanks, this is very helpful. So basically in such situations a public customer can actually buy at the bid or sell at the ask?

So in the situation that you described the customer could actually buy at the bid? Also, what could give Timber Hill (or any other broker for that matter) such priority?

I would suggest sending an email to the SIPC and receive an official response: asksipc@sipc.org Please update regarding the response, it's an interesting issue.

Can you please calrify the exception in which there could be such priority to the broker? Does it relates to brokers who get payment for order flow from the exchange and therefore also get priority in execution? Or is it something else? Also, you stated "hoping to get an execution near the...

Is there any difference in the execution process that you described between single orders and complex order? I am interested mainly in spread orders. Also, if a certain broker is an exchange member and another broker is not a member, can the membership give the first broker any priority or...

Regarding your example, I would assume that if you want to short 30 verticals and the other side is willing to long the same 24 verticals at your limit then the exchange's algorithm just splits the orders equally between the currently open orders and therefore only 4 out of 5 (times 6) get...

Bear in mind that as opposed to calendar spreads on physically-settled options (such as SPY) in calendar spreads on cash-settled options (such as VIX) the max loss can be greater than the debit paid for the spread, and this may be one of the reasons for the higher margin requirements. See...

I have an additional question: if there is a broker that is a member of different options exchanges (such as optionXpress) and there is a broker that is not a member of any exchange (so that it is only a member of SIPC and FINRA) how should that affect the options execution results between these...

Hi, if two different brokers (say, MB Trading and Lightspeed) clear their options trades through the same clearing firm (say, Penson) should there be any difference in the execution results? Or since they use the same clearing firm all of the orders should be routed the same way and there should...

Thanks for the information on eOption, I did not know about them; I will check it. It's true that the pricing of most of the brokers differ only slightly, but still if check it seriously he may find better deals, which can substantially increase the bottom line over time. In addition, there...

Regarding BBT you already have JAN 2012, MAR 2012, and even Jan 2013 available.

Yes I looked at them, but again, my main problem is with the rates that are published on the website (especially the $5 minimum) and I do not know if it is negotiable. If you have any information in this regard please let me know, thanks.

Thanks for the response. Regarding OptionsXpress -- do you think they can give better rates than what is published on the website ($12.95 flat rate per order plus $1.25 per contract after the 11th contract per order)? I understood that in some brokers (such as thinkorswim) the published rates...

Hello, I am searching for an equity option broker that offers low commission per contract (preferably $1.5 or less), without any additional "ticket charge" and preferably without any constant monthly charges (such as software fees, data fees, activity fee, etc.). Also, I would prefer a broker...

One of the reasons it is difficult to get good execution on ES options spread is that the Globex currently does not enable implied pricing functionality regarding options spreads but only regarding certain futures spreads (see a discussion in previous post) . Therefore your ES option spread...

I heard that in the CME an option spread order will only be filled against an opposite spread order and not against individual legs (I am not speaking about spreads that include futures but only about spreads that include options) becuase there is no implied pricing functionality that enables...

No, I am not asking about sending different legs to different exchanges, I am asking just about the ability to get fills against individual legs and not necessarily against an opposite spread order. I heard that US option exchanges such as the CBOE and ISE have such functionality but that the...