Good Reasons to open 1 additional Futures account

[bone]

And why didn't you tell the broker that? Automated trading systems have to be registered with the CME regardless. Sounds reasonable to me at least.

thanks for the idea, but i like where im at. need the additional account for automated trading. trades are occasionally bumping into each other. having a moment of zero exposure...priceless.

 

[Ironplates]

And why didn't you tell the broker that? Automated trading systems have to be registered with the CME regardless. Sounds reasonable to me at least.

i did and that's when i learned about the wash rule. so they said to come back with another reason.

the auto trade system need to be registered if it's "retail" or even an unregistered private fund, what's the registration entail and why? i just don't like staring at a screen and simply automated my trading system. eventually i'll roll it out into my private fund.

 

[bone]

Automated trading systems require registration because the exchange tags the orders uniquely.

https://www.cmegroup.com/tools-information/webhelp/cme-customer-center/Content/tag50-register.html

https://www.cmegroup.com/tools-info...ries/market-regulation/CME-CBOT-RA0810-3.html

i did and that's when i learned about the wash rule. so they said to come back with another reason.

the auto trade system need to be registered if it's "retail" or even an unregistered private fund, what's the registration entail and why? i just don't like staring at a screen and simply automated my trading system. eventually i'll roll it out into my private fund.

 

[bone]

Just as a side note - if your ATS consistently generates wash trades the CME will destroy you.

i did and that's when i learned about the wash rule. so they said to come back with another reason.

the auto trade system need to be registered if it's "retail" or even an unregistered private fund, what's the registration entail and why? i just don't like staring at a screen and simply automated my trading system. eventually i'll roll it out into my private fund.

 

[tiddlywinks]

Automated trading systems require registration because the exchange tags the orders uniquely.

https://www.cmegroup.com/tools-information/webhelp/cme-customer-center/Content/tag50-register.html

https://www.cmegroup.com/tools-info...ries/market-regulation/CME-CBOT-RA0810-3.html

Thank you for this info @bone

I read through the links based on my own situation.

No registration needed(for me)
Too many places already have my info!!

Required Registrationof Tag 50 IDs

Registration of Tag 50 IDs is required for individual members, employees of a member, employees or contractors of a clearing or corporate member and any other party receiving preferential fees in accordance with programs offered by CME or CBOT.Additionally, irrespective of whether a party is eligible for preferential fees, Market Regulation or the GCC reserve the right to require the registration of any market participant. Such registration is typically required when the participant generates significant messaging traffic.

 

[Ironplates]

Just as a side note - if your ATS consistently generates wash trades the CME will destroy you.

my system does not generate wash trades. it generates realized gains both long and short with minimal overlap.

 

[Ironplates]

hmmm...

1) short-term trading, 2) swing trading, 3) investments

1) index trading, 2) energy complex trading, 3) foods, meats, other 1256 contracts trading, 4) FOP only trading

Come on man. That's really your question?

I am trying to come up with a bona fide reason.

Here are some proposed ideas:

reason for the additional account:
For short selling only.
For hedging only.
For Opportunistic Trading opportunities
For taking bona fide market position exposed to market risk in short term trading
To utilize unique trading strategies for various futures instruments.

 

[Overnight]

I am trying to come up with a bona fide reason.

Here are some proposed ideas:

reason for the additional account:
For short selling only.
For hedging only.
For Opportunistic Trading opportunities
For taking bona fide market position exposed to market risk in short term trading
To utilize unique trading strategies for various futures instruments.

Fine, then tell them this, since all you want to do is break the rules and do wash trades...

"I need the second account to do an intermarket spread against my first account, but leg it manually with max leverage in each account, exactly the way @bone says is a terribly inefficient way to do such things."

Seriously, your OP is getting old, FAST.

 

[bone]

It’s actually worse than that. He will get ZERO margin credit between accounts or sub accounts. If he’s long ES in one account and short YM in another account he gets no margin offsets. None. If he buys ES at 8:00am in one account and he sells ES at 1:00pm in another account he’s got two unrealized open positions and he’s going to be margined for outright risk in ES twice.

Fine, then tell them this, since all you want to do is break the rules and do wash trades...

"I need the second account to do an intermarket spread against my first account, but leg it manually with max leverage in each account, exactly the way @bone says is a terribly inefficient way to do such things."

Seriously, your OP is getting old, FAST.

 

[Overnight]

It’s actually worse than that. He will get ZERO margin credit between accounts or sub accounts. If he’s long ES in one account and short YM in another account he gets no margin offsets. None. If he buys ES at 8:00am in one account and he sells ES at 1:00pm in another account he’s got two unrealized open positions and he’s going to be margined for outright risk in ES twice.

I never mentioned margin credit. I just mentioned an intermarket spread. All he wants is a bona fide reason to be able to have a second futures account with same broker.