IB and IEX Discretionary Pegs

Tim Smith said:
@d08,

Regrettably nothing of note so far.

6 votes on the feature poll, average of 5 stars, which is great ... but no comment or progression from IB side on the poll

I tried ibmgmt@interactivebrokers.com as someone suggested above, I can only assume my account is not large enough to merit a reply as all I've had so far is radio silence.

If I can find another means to get the message through I'll try that, maybe a handwritten letter ? :sneaky:
Its a great shame. Don't get me wrong, its great IB have enabled IEX access, but I can't imagine it would take an inordinate amount of time or effort to add D-PEG access. And failure to do so is, as usual, only at the detriment of retail traders.
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They probably see adding D-PEG support as work with little reward as it will result in better fills compared to SMART.

There's no point in talking with support, I asked them and I was directed to the features poll -- where good ideas go to die.
 
d08 said:
it will result in better fills compared to SMART.
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I remember those words from you before. I remember thinking "yeah, he's probably right" then. Now, a few months down the line, I'm thinking Nail, Head one-nil to d08.

But I don't think we should give up on it just yet.

d08 said:
There's no point in talking with support, I asked them and I was directed to the features poll -- where good ideas go to die.
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I was thinking more along the route of looking up my sleeve for options outside of IB direct contact mechanisms. :cool:

So far I have one option in mind. Have not had the opportunity to do the necessary further looking into it, but now you've brought the topic back to my attention I'll try to progress it this weekend.
 
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IEX's D-Peg order looks like it is doing pretty much the same as IB's Adaptive Algo. That would explain why IB is in no hurry to implement the former. IB was also not routing non-marketable orders to IEX as long as they were a dark pool. I haven't heard whether they do now that IEX is an exchange.

I guess it comes down to who you think does a better job of protecting you from predatory trading, IB or IEX?
 
I just added a comment and vote for the feature request pool, asking for IB to implement this. From what I have read these IEX d-pegs are an interesting addition to a trader's arsenal. Now, I dont necessarily think they are super useful, mainly because (as I understand), this is essentially with hidden order with some additional elements that will change its price in certain situations.

The problem is that IEX has only a 1.5% market share, the value of sending a hidden order to a small market is very limited. You wont interact with the volume from the big exchanges (Nasdaq, ARCA, NYSE) so, it might take quite a while to get filled. I'm not quite sure how the mid-point trade attempts work (if they try to hit only IEX or if they will also route out to other exchanges) but I suspect it's also limited to IEX liquidity only

Still, its a good addition to have in a trader tool box, especially because as IEX grows, it can be a very good order to be avaliable
If any of what I said is wrong, let me know. I read their description about d-pegs but I still got some questions about it
 
Daal said:
I'm not quite sure how the mid-point trade attempts work (if they try to hit only IEX or if they will also route out to other exchanges) but I suspect it's also limited to IEX liquidity only)
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Yes, this is a question I have as well. From IB's tiered commission structure, it seems to imply that IEX will route orders to other exchanges with a small fee tacked on. Makes me think that the D-Peg order might route out to other exchanges.
 
I've used mid point/relative orders on IEX with satisfactory fills even in very low liquidity situations. What I notice with ARCA, ISLAND and everyone else is that I'm there first, someone joins me on the price level, gets filled BEFORE me and I'm sitting there like a fool (I'm suspecting they use some flags that aren't available for me).
On IEX, this hasn't happened.
For marketable orders, IEX also takes liquidity from other venues.
 
d08 said:
I'm suspecting they use some flags that aren't available for me
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Yeah, the guy from Nanex has made strong hints in the direction of existence of such flags, and quite frankly given the state of the non-IEX exchanges being shills to the HFT brigade it wouldn't surprise me in the least if that's indeed the case !
 
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sprstpd said:
it seems to imply that IEX will route orders to other exchanges with a small fee tacked on. Makes me think that the D-Peg order might route out to other exchanges.
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IEX do a reasonably good job of clearly outlining how their routing works (https://www.iextrading.com/trading/router/) and DPEG (https://www.iextrading.com/trading/dpeg/).

Of course for the full story you probably have to decipher the relevant chapters of their rulebook (https://www.iextrading.com/docs/Investors Exchange Rule Book.pdf)

My understanding is as @d08 says, if they're short they take liquidity from other venues. So their own market share is not really that relevant. I may be wrong, but that's what I like to think they do ! :D
 
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