IB Worried About Volatility, Changes Smart Routing Guarantee For Cetain Order Types

S

shortie

SMART Combinations - Routing Logic Update
_ Dear Trader, _ Given the level volatility experienced of late and its adverse effect upon the execution of certain combination orders, IB has decided to no longer provide a guarantee with respect to the full execution of stock vs. stock or SMART routed EFP combinations as of 2010-06-02. _ Please note, this change will not prevent clients from entering such orders, but rather will expose them to the risk of receiving partial executions, both in terms of leg quantity and balance._ In addition, this change will have no impact upon the guarantee provided to SMART routed US Option vs. Option or US Option vs. Stock combination orders. _ For additional information, including procedures for acknowledging non-guaranteed combination orders and an example of the risk associated with a partial execution on such orders, please type KB1323 ( ibkb.interactivebrokers.com/node/1323 ) into the search engine on our home page ( http://www.interactivebrokers.com/en/main.php ).
Interactive Brokers Customer Service
 
Quote from shortie:

SMART Combinations - Routing Logic Update
_ Dear Trader, _ Given the level volatility experienced of late and its adverse effect upon the execution of certain combination orders, IB has decided to no longer provide a guarantee with respect to the full execution of stock vs. stock or SMART routed EFP combinations as of 2010-06-02. _ Please note, this change will not prevent clients from entering such orders, but rather will expose them to the risk of receiving partial executions, both in terms of leg quantity and balance._ In addition, this change will have no impact upon the guarantee provided to SMART routed US Option vs. Option or US Option vs. Stock combination orders. _ For additional information, including procedures for acknowledging non-guaranteed combination orders and an example of the risk associated with a partial execution on such orders, please type KB1323 ( ibkb.interactivebrokers.com/node/1323 ) into the search engine on our home page ( http://www.interactivebrokers.com/en/main.php ).
Interactive Brokers Customer Service
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Last week the IB stock vs. stock combo orders stopped working altogether. IB told me that they are no-longer supporting this type of combo order at-all. When I told them that their notice explicitly said the orders would be supported (although not guaranteed) they acknowledged that, but still insisted it's no-longer supported. I asked that they publish an appropriately amended notice and they kinda agreed, but I have not seen one yet.

Occasionally I have received incorrect info over the phone from IB and I am wondering if anyone else can confirm their statement to me.

Thanks,

Don
 
Let me guess, some scummy hft types ran a scam where they pulled size and left IB holding a bag.

I know nothing for sure, but the thought just occurred. Since they pulled the guarantee, this can't hurt them now.

Never really had much luck with the stock combo, many times not getting a fill when the prices matched my limit.

Don't think it's so far fetched, hft is all about ripping off the other guy. If they tell you different , tell them they are fos.
 
Quote from Don87109:

Last week the IB stock vs. stock combo orders stopped working altogether. IB told me that they are no-longer supporting this type of combo order at-all. When I told them that their notice explicitly said the orders would be supported (although not guaranteed) they acknowledged that, but still insisted it's no-longer supported. I asked that they publish an appropriately amended notice and they kinda agreed, but I have not seen one yet.

Occasionally I have received incorrect info over the phone from IB and I am wondering if anyone else can confirm their statement to me.

Thanks,

Don
More...

I'm still able to use the order type for Stock vs Stock so what they told you is wrong so far at least. Sucks that it's not guaranteed anymore though but not getting too many unfilled legs. Just annoying having to try and manually fill them when it happens.
 
Quote from dinn13:

I'm still able to use the order type for Stock vs Stock so what they told you is wrong so far at least. Sucks that it's not guaranteed anymore though but not getting too many unfilled legs. Just annoying having to try and manually fill them when it happens.
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Are you sure that these stk-to-stk combo orders are working? That is, have you actually had executions? On my computer it looks like the order has placed, but it never executes. Also, it does not show on the pending page.

Don
 
Quote from Don87109:

Are you sure that these stk-to-stk combo orders are working? That is, have you actually had executions? On my computer it looks like the order has placed, but it never executes. Also, it does not show on the pending page.

Don
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Yeah definitely. Included a pic of the summary page from my combo trades today. Notice tuesday is checked and the contract is a Stk/Stk combo.

One thing to take note of is that if you have the add liquidity flag checked for the order then the stk/stk price probably will need to go a few cents below your limit to execute due to the way they are placing the individual orders. So I tend to be a bit more aggressive with the limit price since on average I'll get a better price than it.
 

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Quote from dinn13:

Yeah definitely. Included a pic of the summary page from my combo trades today. Notice tuesday is checked and the contract is a Stk/Stk combo.

One thing to take note of is that if you have the add liquidity flag checked for the order then the stk/stk price probably will need to go a few cents below your limit to execute due to the way they are placing the individual orders. So I tend to be a bit more aggressive with the limit price since on average I'll get a better price than it.
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Thanks dinn,.

One more question, I get the feeling that this capability may depend on the stks traded. At least the IB warning message seems to imply that some stk combos are supported and some are not. I have tried several stk pairs and none work. Are you doing several different stk pairs?

I guess I'll give IB another call.

Don
 
Quote from Don87109:

Thanks dinn,.

One more question, I get the feeling that this capability may depend on the stks traded. At least the IB warning message seems to imply that some stk combos are supported and some are not. I have tried several stk pairs and none work. Are you doing several different stk pairs?

I guess I'll give IB another call.

Don
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I guess it's possible that's the case. I do only trade a single pair. Although I'd be surprised if they don't support all pairs, at least in the US since they are no longer taking on any risk.

Don't know if this makes a difference but I have been using the beta version of the TWS...
 
I called IB and found that there is a configuration parameter to allow/disable guaranteed combos.

Combos working now and fills so-far are good.

Don
 
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