IB and new CME Cancel/Modify

This is roughly how it works:
CME computes the ratio of trades and modifies/cancels in a product. If this ratio exceeds a limit, IB gets charged $2,000 for that day for that product regardless how many contracts we traded (it may be 0, 1, or a million).

As far as the trailing stops:
If simulated stop orders are used, you will not get charged. If native stop orders are used, you will.
 
IBsoft:

Am I correct with this:

1)Modifying or canceling a stop order will not result in a $1 charge because it is not native to Globex and therefore never placed at the exchange. However, an execution of a stop gives us a credit of $5.

2)modifying or canceling a stop limit or any other native order on Globex will result in a $1 charge because it actually was placed at the exchange. An execution of a stop limit or other native order gives us a credit of $5.

Also: are OCA orders in general(for example, a limit order OCA with a stop limit order) treated as 1 order or 2 orders?

Thanks

Bob
 
Quote from bigbob:

IBsoft:

Am I correct with this:

1)Modifying or canceling a stop order will not result in a $1 charge because it is not native to Globex and therefore never placed at the exchange. However, an execution of a stop gives us a credit of $5.

2)modifying or canceling a stop limit or any other native order on Globex will result in a $1 charge because it actually was placed at the exchange. An execution of a stop limit or other native order gives us a credit of $5.

Also: are OCA orders in general(for example, a limit order OCA with a stop limit order) treated as 1 order or 2 orders?

Thanks

Bob
More...


1) yes
2) yes
Also: OCA makes no difference. 1) and 2) above apply.
 
I think there are some good news and some bad news in this change - as follows:

good - the insane toggling of a few/lot of contracts on a price we sometimes notice, or rapid sequential order movement/changes, might get reduced (significantly) - thus resulting in less bandwidth for quotes.
That's good for us who record every change, and good for those who suffer from bandwidth problems/delays/congestion problems on their networks/computers.

bad - doing nervous trading with a price-ladder/DOM like IB TWS bookladder will become a bit more expensive for scalpers ...
Automated trading with frequent adaptive target/stop setting will of course also get more expensive.


Probably it will just mean a period of adaptation, before those who can afford/muster developing automatic adaptation or are exempt will carry on like before - while newbies will find things are a little more expensive. Most will probably not even care, like noted, but 1-lotters might find it a bit constraining.

Overall, I think it makes things a little more challenging - and that's welcome.
... as in anything which can provide a little edge, even if it's reservations induced by the exchange's new rule.
 
Hello,
the message from IB:
"Execution credits are applied against cancel or modify fees for the day"

i would like to know the definistion of "the day"
does the offecial day ends at 1615 ? what if i cnaceled orderes before 1615, and i got filled at 1616, i wont be credit ?
and what if i canceled after 1615, will this fees can be credited if i got filled in the next day before 1615?

Thanks for any infos.
 
For days when you dont get filled, say you are trading an
open range breakout, and the market doesnt breakout
either up or down then you will be charged $2.

Which seems a bit unfair as you didnt modify or cancel the
order, it just didnt get filled on the day.
 
Quote from Businessman:

For days when you dont get filled, say you are trading an
open range breakout, and the market doesnt breakout
either up or down then you will be charged $2.

Which seems a bit unfair as you didnt modify or cancel the
order, it just didnt get filled on the day.
More...

But if you place them as day orders they will expire unexecuted & you won't incur the charges. That's how it works w/ the option cancel fees anyway.
 
According to the CME the limit they are imposing is 25 messages for each execution which seems reasonable.

So if anyone from IB is reading this thread, can you explain why you have set a limit at only 5 cancel/modfies per execution?

This limit is low enough to start to cause problems to a large number of traders, automated or not.

Is this being used as an opportunity to generate more comissions from small traders?
 
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