IB and new CME Cancel/Modify

If I were IB, I would be pissed. It can change their entire Futures part of their business if their competitors go unscathed...

man 2k a day surcharge is nearly a half a million per year right out of IB's profit!

all those front ends and open API..well....good luck to you guys..Yes I said "Luck" this time...
 
"The Chicago Mercantile Exchange (CME) will be introducing new cancellation fees and, as of June 1, 2005, IB will be charging $1 for each CME cancellation with a credit of $5 for each CME executed trade. Execution credits are applied against cancel or modify fees for the day. Execution credits cannot be greater than cancel/modify fees."
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Let’s see……. For example:

Day 1: I had 10 trades, no cancellation/modification – I’d pay full commissions, got 0 credits;

Day 2: I modified 10 orders but none got filled – I’d be charged $10 for the fees;

Day 3: all the modified orders in Day 2 got filled – I’d pay full commissions for all 10 executions, again, got 0 credits!

Am I missing something here? :confused: - Could someone please tell me it ainnnn’t so? :(
 
Quote from AAAintheBeltway:

Is the fee $1 per order or per contract?

Clearly the CME needs some competition in the stock indexes. I think this could hurt them in the currency futures, as there is plenty of retail FX competition.

It seems obvious to me that this is another subsidy they are handing to their members, who resent retail competition for MM. Their mentality has always been that the price of beating the spread is an exchange membership. If you're not part of the club, you should not have the ability to buy the bid.

So basically, we have globex out of the energy market and trying to screw us in the indexes. When's the next shoe going to drop?
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there's already bullshit cancel fees in the option mkts.

This is just more of the same. Trying to limit non MM activity. It wont help them in the long run though.

With electronic exchange competition the way it is, someone will offer a solution.
 
:) just makin' conversation....if you want to really see some suds..check out my thread in Chit Chat...lol


Quote from ktm:

It's amazing the lather you guys can work yourselves into when you really try.
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So what are the other broker alternatives?

The ones that offer CME trading via API that I know of are
MB Trading and eflooftrade.

Will need to find out if these two have cancel/mod fees.

Does any one have any experience of API trading via these
two or any suggestions for other brokers?
 
You guys are going to need to split up! The other brokers do not want to get their own version of the PDT rule unleashed on them! So you most likely will not be welcome...Thank the CME for that!


Like I said : The Party is Over...deal with it!

The range in the ES sucks anyways...


Quote from squeeze:

So what are the other broker alternatives?

The ones that offer CME trading via API that I know of are
MB Trading and eflooftrade.

Will need to find out if these two have cancel/mod fees.

Does any one have any experience of API trading via these
two or any suggestions for other brokers?
More...
 
Under the below link you can find the details of how CME will be charging its members.

www.cme.com/messagingpolicy

Some key points:

The 25:1 ratio is not fixed. It varies from month to month and product to product. (e.g for ED futures it is projected to be 8:1 and ES futures 10:1).

Timber Hill proprietary trading is routed to the exchange through separate connections. Timber Hill had to adjust its messaging strategy to stay w/ in required limits.

It is not IB's aim to make money on this. In order to ensure that IB will not pay the $2,000 per day per product, it is not sufficient to pass on the ratios onto our customers. The effect is non-linear. The very first message that exceeds the allowed ratio results in the $2,000 payment.

A poster mentioned that CME delayed the introduction of the policy by 1 month. Could you please post the link?
 
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