Here is what I got today:
"Dear Trader,
We have noticed a very high ratio of orders and order modifications relative to the number of executions in your account X. Every order instruction submitted by you (includes new order submission, order modification, cancellation) utilizes computing power. Excessive order activity can slow down IB systems and negatively impact other clients.
IB monitors order/trade ratios to prevent excessive and unnecessary system resource utilization. As a general rule, a ratio value less than 10 order actions per 1 execution will generally be acceptable, although fees may apply for certain markets where the ratios exceed 5:1. Above 20:1, IB will request clients using automated order management tools to optimize their order management behavior. Above 100 orders per execution, or if our analysis indicates a systematic misuse of IB's automation services, IB may take steps to reduce the system utilization including: charging a fee for order modifications (typically 20% of the commission for an execution), or limiting access to API services.
Most of the time, excessive order/trade ratios are caused by poorly optimized APIs or other order creation programs. These applications generate price changes that do not materially alter the likelihood of the order being filled. By example, when a stock is quoted 50.0-50.2, then an order change from 45 to 46 does not really change the likelihood of execution.
Most clients are able to easily improve their order management by introducing 'no-waste' logic into their systems. We kindly request you examine your order management logic to reduce unnecessary orders to the recommended levels. "
Who else got it? Time to move our systems elsewhere?
"Dear Trader,
We have noticed a very high ratio of orders and order modifications relative to the number of executions in your account X. Every order instruction submitted by you (includes new order submission, order modification, cancellation) utilizes computing power. Excessive order activity can slow down IB systems and negatively impact other clients.
IB monitors order/trade ratios to prevent excessive and unnecessary system resource utilization. As a general rule, a ratio value less than 10 order actions per 1 execution will generally be acceptable, although fees may apply for certain markets where the ratios exceed 5:1. Above 20:1, IB will request clients using automated order management tools to optimize their order management behavior. Above 100 orders per execution, or if our analysis indicates a systematic misuse of IB's automation services, IB may take steps to reduce the system utilization including: charging a fee for order modifications (typically 20% of the commission for an execution), or limiting access to API services.
Most of the time, excessive order/trade ratios are caused by poorly optimized APIs or other order creation programs. These applications generate price changes that do not materially alter the likelihood of the order being filled. By example, when a stock is quoted 50.0-50.2, then an order change from 45 to 46 does not really change the likelihood of execution.
Most clients are able to easily improve their order management by introducing 'no-waste' logic into their systems. We kindly request you examine your order management logic to reduce unnecessary orders to the recommended levels. "
Who else got it? Time to move our systems elsewhere?
