CME tag 37 changes, anyone have thoughts on this?

i960

i960

Something about this sets off the paranoia and I'm curious if I'm reading it right:

http://www.cmegroup.com/notices/electronic-trading/2017/03/20170313.html#tso
http://www.cmegroup.com/confluence/...ummary#MDP3.0-TradeSummary-TradeSummaryOpt-In

cme_tag37.png


cme_tag_37_1091.png


cme_tag_35_37.png


Whenever I see something like "increase transparency" I usually translate it to "benefit HFT" - so what's the angle here, if any? Or am I just reading into something inconsequential?

CC: @garachen
 
Interesting. Although I'm fairly unfamiliar with the complexities of what you post, it does appear that perhaps now, we will almost be able to really say "they hunted my stops!"

It sounds like if you don't opt in, your orders will be segregated, and hence not consolidated, and hence you will stand out perhaps as the lone sheep waiting to be picked off?

Never mind being able to see if a trade was a market order on the bid or ask, what would be amazing would be to see if the trade originated at Goldman Sacks or just some IB account. :)

I do agree with you that it sure sounds like this might be something that HFT might be able to benefit from.
 
Sounds like customer profiling for the purpose of collusion.

It makes it easier to eat small fish. Why run your HFT algos full throttle if you are amongst a bunch similar algos?

I'm totally disgusted.
 
Agree. And if I read this correctly then customers need to opt in to have the ID displayed.

Some other markets even identify market makers by id tagged to price levels posted in the order book.

southall said:
It is the orderId, not the account Id, so i cant see how it would identify which customer it is.
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Zzzz1 said:
Agree. And if I read this correctly then customers need to opt in to have the ID displayed.

Some other markets even identify market makers by id tagged to price levels posted in the order book.
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Nope, the point is that after the 27th it's no longer opt-in. 1091 pre-anon does nothing then.

What I'm trying to determine here is what's the point of this change? How is this more "transparent?"
 
Thanks for clarifying, well, with the order ID you can now track what happens to orders. You can see how frequently orders are amended, such as price level adjustments. You will still not be able to pinpoint the orders and trace them to the client but at least you can keep track of orders and how frequently they are amended and/or how long they stay in the book. It may potentially be of value to certain players, such as DMA VWAP algorithms.

i960 said:
Nope, the point is that after the 27th it's no longer opt-in. 1091 pre-anon does nothing then.

What I'm trying to determine here is what's the point of this change? How is this more "transparent?"
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I think the below quote explains the benefit very clearly....

"Order Identifier – Tag 37-OrderID
This value is assigned by CME Globex and is unique across all iLink sessions and market segments. This value remains constant through the life of the order and allows customers to track all activity related to the order"



Zzzz1 said:
Thanks for clarifying, well, with the order ID you can now track what happens to orders. You can see how frequently orders are amended, such as price level adjustments. You will still not be able to pinpoint the orders and trace them to the client but at least you can keep track of orders and how frequently they are amended and/or how long they stay in the book. It may potentially be of value to certain players, such as DMA VWAP algorithms.
More...
 
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