IB Energy Futures New Policy

[narafa]

Hot from the oven.

So summary, cash settled contracts will not be available for trading until the last day (They will follow the physically delivered contracts), so 2 business days prior to the contract expiry will be the last trading day for all contracts.

Opening or increasing positions will not be accepted 5 business days prior to actual expiration, only reducing or closing out positions will be accepted.

 

[CannonTrading_Ilan]

Many FCMs are worried about volatility after what we saw in the May crude. Some are placing the front month on liquidation only, some are asking for 200-300% of margins etc.
These are not "normal times" by any means, not in the trading world nor the real world....

 

[Real Money]

Makes sense. They don't want you to go in full margin when the market could just come unhinged at any moment.....

 

[ZBZB]

I hope the system is set up for negative values now as the Saudis have 25 full oil tankers heading to the US right now.

 

[NotKenGriffin]

I have positions in these products and never got this notice -- how did you get it?

This whole debacle has really exposed IB as a clown show. They like to present themselves as head and shoulders above the other brokers, but their systems are trash. I just spoke to support and they have no plans to support the $0 and negative strike oil options trading on CME today.

Edit: Checked my bulletins on both TWS and Mobile and see nothing...

 

[narafa]

I have positions in these products and never got this notice -- how did you get it?

This whole debacle has really exposed IB as a clown show. They like to present themselves as head and shoulders above the other brokers, but their systems are trash. I just spoke to support and they have no plans to support the $0 and negative strike oil options trading on CME today.

Edit: Checked my bulletins on both TWS and Mobile and see nothing...

Oh, how come you didn't get that notice in your bulletins? That's a flaw from IB for sure.

Just to highlight, I don't currently have positions or even orders in any of the mentioned products (I have existing positions in a related instrument, SCO), but this notice is irrelevant to those positions anyway.

So they are not supporting negative options stirkes, wow, they are screwing their customers. I mean, I don't see any reason why they shouldn't unless their system does not support negative strikes, i.e. a technology limitation rather than a business one.

 

[VolSkewTrader]

I have yet to see a trade in any negative strike in WTI LO Jun20. I see some low-ball bids, and no offers. Not sure any MMs, hedgers, or speculators, know how to theoretically price them. The +.5 strike is trading heavily with big open interest.

In three weeks, front month Jun20 is either going to be a shit show like May20, or have minimal volume with hardly any open interest after everyone has exited or rolled into Jul20.

 

[NewTraderAdventure]

Yep, no notice here either, thought I dont trade the CL

Still, good luck trying to find this on the website.

IB not doing a good job of getting info out.

Petterfey needs to kick some ass

 

[donnap]

In three weeks, front month Jun20 is either going to be a shit show like May20, or have minimal volume with hardly any open interest after everyone has exited or rolled into Jul20.

Yeah, probably want to keep an eye out for a roll coming earlier than usual.

 

[NewTraderAdventure]

I have yet to see a trade in any negative strike in WTI LO Jun20. I see some low-ball bids, and no offers. Not sure any MMs, hedgers, or speculators, know how to theoretically price them. The +.5 strike is trading heavily with big open interest.

In three weeks, front month Jun20 is either going to be a shit show like May20, or have minimal volume with hardly any open interest after everyone has exited or rolled into Jul20.

lol, thes contracts were prob manipulated for decades . Now its gone apeshit is the only diff