IB Energy Futures New Policy

[southall]

Closing the barn door after $88 million has already bolted

Lighting never strikes the same place twice.

Next margin blowup will be in some other asset class.

And will catch IB with its pants down again.

 

[ZBZB]

CME have told USO to get out of there 30% open interest position in June. That is why it is down 27% today.

https://www.ft.com/content/a8a7dc16-1a9a-48f9-9bfa-89269f94218a

 

[NewTraderAdventure]

lol, maybe.

need to know who was fired at IB , and if not ,why not

 

[HobbyTrading]

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

In my case: I received this notification by email on April 27th, with title "NRG Futures Close Out Policy".

 

[southall]

Obvious weakness in IB's new policy.

What if the shit hits the fan again earlier than 5 days before expiry.

 

[Same Lazy Element]

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.

Dude, you really think nobody out there knows how to price options using normal assumptions as opposed to log-normal?

 

[NewTraderAdventure]

Dude, you really think nobody out there knows how to price options using normal assumptions as opposed to log-normal?

Wouldnt that apply only to Lumber futures?

 

[narafa]

In my case: I received this notification by email on April 27th, with title "NRG Futures Close Out Policy".

I received the same email from them (On 27 Apr also) besides the flashing bulletin in TWS.

 

[VolSkewTrader]

Dude, you really think nobody out there knows how to price options using normal assumptions as opposed to log-normal?

Yeah you would think these big MMs like Optiver, Susquehanna, and Citadel would have their shit together and do the simple switch from lognormal to normal distrib underlying and start pricing these negative puts tighter. Still just a bunch of low-ball bids for the Jun20 neg strikes. Time to put some ridiculous offers to see if anyone bites.

 

[eastern_warrior]

Yeah you would think these big MMs like Optiver, Susquehanna, and Citadel would have their shit together and do the simple switch from lognormal to normal distrib underlying and start pricing these negative puts tighter. Still just a bunch of low-ball bids for the Jun20 neg strikes. Time to put some ridiculous offers to see if anyone bites.

Who knows if they are doing lognormal or normal distribution but thinking a market maker can or would want to change their code w/o little notice, ability to test or incentive isn't realistic.