IB retail pit access or not ???

[SethArb]

is this some sort of electronic order that gets written up on the floor and then taken to a pit
broker while the IB customer waits for news of execution etc ?

I assume the pit brokers "give-up" IB
as clearing firm for these customer orders

if the data feed is realtime maybe it will add
an edge or reduce paying extra fees elsewhere
for these quotes even if oen does not wish to
experiment with "open-outcry" trading
on the floor ...

 

[def]

Quote from SethArb:

is this some sort of electronic order that gets written up on the floor and then taken to a pit
broker while the IB customer waits for news of execution etc ?

depends on the venue but mostly yes. on the overnight SPX on globex, yes again, it should be available. you'll need to sign up for it via the acct mgt site.

 

[andrasnm]

Def,
I am mainly interested in trading spreads this way. Can you tell me how TWS or this new scheme will accommodate spread orders and further out months? As far as I remember TWS can handle spreads but in a limited fashion....

 

[JayS]

Everything looks good except floor based CME Ags at $12 rt. Kinda high, already getting $10 rt all in now and have personel phone support within 2-3 rings if needed. Also kinda hesitant to try IB for pit with some of def's comments.

 

[def]

Quote from JayS:

Everything looks good except floor based CME Ags at $12 rt. Kinda high, already getting $10 rt all in now and have personel phone support within 2-3 rings if needed. Also kinda hesitant to try IB for pit with some of def's comments.

Jay, my comments are about pits in general.

 

[local_crusher]

Everything looks good so far, two issues regarding commissions come up:

1. The AG's comm is relatively high ($6 per side), indeed.
These are small contracts and $6 would quickly eat up one's PnL.
Maybe IB can re-think this, for me, say $4 - $4.50 would be fine.
However, it probably depends on IB's middlemen.

2. Eurodollars Options. IB will add these in the near term,
PLEASE give an useable commission for these.
The (btw huge) volume in ED options is still 95% floor and it does not at all look as if it wants to move to globex.
Please keep in mind that the premium of these contracts is often only a few $

 

[SideShowBob]

Quote from def:

Jay, my comments are about pits in general.

Check out "Pit Bull" by Marty Schwartz if you want some more stories about pit trading. The idea behind "dual-agent" brokers is that they can trade for you and for themselves at the same time without giving any bias to the order they use in placing orders. The reality is they will screw you six ways from Sunday if you're lucky.....don't ask what they'll do if you're not. I think it's fine if you're playing for a multi-week swing trade, but if you're trying to scalp a tick or two in the pits forget it....

SSB

 

[Cdntrader]

Quote from garbo:

I just checked under "Fees" on the home page and commissions are listed for the pit now.

I am certainly not going to be the first to venture into this water (especially with Def's warning).

But it might be very useful for those rare day's when the E-minis go down and you need to hedge.

I dont see anything regarding equity index futures so I assume the commissions are the same as minis on the unbundled structure and 2.40 a side via bundled.

 

[JayS]

Quote from def:

Jay, my comments are about pits in general.

I previously worked for a clearing firm for the CME & CBOT. If you know who to deal with the pits are not near as bad as your general comments.

 

[Trading Monk]

Quote from SideShowBob:

Check out "Pit Bull" by Marty Schwartz if you want some more stories about pit trading. The idea behind "dual-agent" brokers is that they can trade for you and for themselves at the same time without giving any bias to the order they use in placing orders. The reality is they will screw you six ways from Sunday if you're lucky.....don't ask what they'll do if you're not. I think it's fine if you're playing for a multi-week swing trade, but if you're trying to scalp a tick or two in the pits forget it....

SSB

Agree with you. Those here who are only used to Electronic markets will find out what the old-timers meant when they said, "It takes three days to recover from a fill in the beans pit".