CME Fee Waiver

Here is an email to me from IQFeed as to why IB isn't doing it.

"Because IQFeed is data only (not a GUI interface), we have different requirements. In order to get approval from the exchange, we had to assure them that any customer getting the waivers was using IQFeed in a software app that can place trades through their broker. Another requirement is that the customer must have a funded trading account. Because we don’t interface any broker account information directly, we must have the brokers cooperation to confirm that you have a funded trading account. We created a very simple form that brokers can use to verify this on a monthly basis. It is all done online and takes seconds. Other brokers have agreed to this because of the demand from their customers and the fact they provide a personal touch. It is a win-win-win for Us, the broker and the customer.



The only reason IB is fighting it is because they prefer to have everything automated and don’t want to commit the few minutes each month it would take the verify that a customer still has a funded trading account.



I hope this helps!"





--------------------------------

Jay Froscheiser

Director, Active Trader Products and Sales

Telvent DTN (Nasdaq: TLVT)

www.iqfeed.net | www.dtniq.com | www.prophetx.com

www.dtn.com

(o):402-399-2816 or 800-485-4000 ext. 2816

(c):402-216-6212

(f):402-255-3788

Call/Chat Via Skype
 
Quote from CONR:
Here is an email to me from IQFeed as to why IB isn't doing it.

"Because IQFeed is data only (not a GUI interface), we have different requirements ... The only reason IB is fighting it is because they prefer to have everything automated and don’t want to commit the few minutes each month it would take the verify that a customer still has a funded trading account...
Jay Froscheiser
"
More...

It seems to me that Mr Froscheiser and iQfeed would be better off spending their time designing an STP enterprise reporting solution rather than commenting on another firm's resource utilization choices. There seems to be some missing information in iQfeed's response to the IB customer.

The fact is that IB already offers the CME Globex data for free within our US data bundle. Our platform is a trading platform so there is no need for us to report this fact to a third party to be able to offer the data without a special charge.

IQfeed is merely trying to sell their own data services by pretending they are offering some special value regarding CME Globex fees.

Please see the following link for verification from CME's own product documentation (pdf, page 21, right side, paragraph 2). Or look at the attachment, same page references.
http://www.cmegroup.com/globex/files/GlobexRefGd.pdf

"There are certain criteria that must be met to qualify for a CME Globex market data fee-waiver. The main three criteria are that a user/device must only be accessing market data for electronically traded products from CME Globex, the user/device is capable
of routing orders to CME Globex, and the user has a capitalized futures account capable of trading CME Group’s or Participating Exchange’s products."

The IB TWS / brokerage system meets all of the aforementioned criteria with no additional fees.
 
The problem is, your data sucks IB. You guys aggregate trade data. T&S is useless using your data. That is why I choose to PAY IQFeed for a great feed.

Again, if you don't want to lose customers, you need to get on board.

By the way, the above email was not edited as you implied.
 
Quote from IBj:

The fact is that IB already offers the CME Globex data for free within our US data bundle. Our platform is a trading platform so there is no need for us to report this fact to a third party to be able to offer the data without a special charge.
More...
eSignal (who also charge for data delivery and separately for their software) are in fact offering this fee waver for customers who execute trades via IB through the platform offered by eSignal. Given the explanation I read above they may be doing so without any cooperation from IB... but then IB chose to allow customers to use eSignal data in TWS.

The data from IB cannot be matched in terms of value for money but then some people want true tick data too.

Quote from CONR:

The only reason IB is fighting it is because they prefer to have everything automated and don’t want to commit the few minutes each month it would take the verify that a customer still has a funded trading account.
More...
IB is one of the very few brokers who offer account application process in a totally paper-free form.
 
In my discussions with IB staff, I have offered to work with them to provide any automation / efficiencies they would need. We have offered to write to their API's in order to authenticate that the users have a funded trading account (one of the exchange's requirements). Unfortunately, I was informed that the IB API's cannot tell if an account is funded.

In order to get approval from the CME to offer waivers with IQFeed, we built an efficient reporting system all brokers could use. We are flexible and will take into consideration any suggestions customers or brokers have. We want what is best for our customers and will continue to do what we can to help them receive the level of service needed to be profitable traders.

I understand a poll has been created to gauge interest from IB users: http://www.interactivebrokers.com/en/general/poll/poll.php?sid=6179

While I know of a large number of people who have contacted IB directly, it may be good to respond to the poll to show your interest.
 
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