fewer TMBR executions

[Htrader]

Is anyone still getting stock executions via TMBR when using IB's smart routing?

I haven't gotten a fill from them for over a month now. I used to get a fill from them at least once a day.

 

[stock777]

Maybe you're just too good

 

[ggoom]

I was really wondering about it. I am not receiving a fill from TMBR any more at all. Anyone has any idea??

 

[vikana]

same here. Hadn't had one in a long time.

 

[JackR]

Had two a week ago Friday

 

[jimrockford]

Had several in recent weeks. Had two just today.

 

[Bob111]

i saw a tread, here on ET with letter from IB, where they basically give up on making market due too much manipulation. my guess-that why there is no more fills from TMBR. with all tools IB have-they can't make money on it.

 

[TorontoTrader2]

I see TMBR is the PMM on these ISE indexes, scroll to bottom of page: http://www.iseoptions.com/products_traded_index.aspx

 

[tcm66]

In my case also, I haven't gotten a single TMBR execution at IB for well over a month (whereas I used to get at least 3 or 4 a day, sometimes up to 8 or 10).

As to why, my guess is that IB has decided to enhance the value of their operation to traders by eliminating the inherent conflict of interest when the brokerage firm's own market maker takes the other side of your trade --- you never really know if you are getting the best price available on the market, but in general you can be justifiably suspicious that you are not. Even the inherent latency of the Internet can provide riskless opportunities for the MM (and all the major houses have their in-house MMs, not just IB).

If my guess is correct, then it is because IB has judged that they can pick up a lot more business from big traders who really really dislike being picked off by in-house MMs --- and IB's bottom line can significantly improve from the resultant increase in trading volume, margin interest charged, etc.

 

[def]

Quote from tcm66:

As to why, my guess is that IB has decided to enhance the value of their operation to traders by eliminating the inherent conflict of interest when the brokerage firm's own market maker takes the other side of your trade --- you never really know if you are getting the best price available on the market, but in general you can be justifiably suspicious that you are not. Even the inherent latency of the Internet can provide riskless opportunities for the MM (and all the major houses have their in-house MMs, not just IB).

If my guess is correct, then it is because IB has judged that they can pick up a lot more business from big traders who really really dislike being picked off by in-house MMs --- and IB's bottom line can significantly improve from the resultant increase in trading volume, margin interest charged, etc.

there is no conflict of interest with TMBR routing for equities and the very nature of this thread seems to imply that the fills are excellent.

The TMBR quote just becomes part of the internal NBBO quote. If the TMBR quote can match or beat the NBBO, then you will get an instant fill. If TMBR is not making the best market in a particular stock, then you will not get a TMBR fill.

Note: TMBR fills are for equities. They have nothing to do with options.