Interactive Brokers Implements Price Caps

This has been happening for years, I'm glad ZH picked it up, it's scandalous that a broker would modify prices on customer orders without their consent and then think a pop-up window absolves them of their fiduciary duty to execute.

What really irks me is the price caps override the exchanges' own price banding algorithms in the case of CMEGroup and ICE futures. The regulatory safeguards are already there.

PS - I transact volume away from IB for this very reason in a fast market because I don't need the headache of challenging a missed fill, but I have no qualms about taking such a claim to arbitration if you're denied a legitimate fill in a runaway market.
 
atrocious said:
This has been happening for years, I'm glad ZH picked it up, it's scandalous that a broker would modify prices on customer orders without their consent and then think a pop-up window absolves them of their fiduciary duty to execute.
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They don't modify anything, they just reject the order... so no scandals there mate..
 
The forced price cap first happened about 6 months ago, before that it was a soft cap that could be overridden from TWS. After one instance of a forced cap I complained and requested to not be part of it and have had no issues ever since.
 
That doesn't sound new from Ib,their price cap also prevent you from trading in a fast moving market. I remember being prevented to sell eurchf by tws during the chf debacle while beeing long in eurchf futures where there was no bid nor ask. Happened several times and the platform just froze when I insisted.
Bad memory, was down 7 digits intraday and finished down in the high 6. It took quite a while until tws let me sell eurchf.
Sometimes also when i make a mistake with an order i see a price cap pop up to prevent or delay me from trading.
 
d08 said:
The forced price cap first happened about 6 months ago, before that it was a soft cap that could be overridden from TWS. After one instance of a forced cap I complained and requested to not be part of it and have had no issues ever since.
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Indeed that was my impression that the price cap could be overridden, except in such situation as the eurchf, when i tried to overide it, the platform kept on showing up the cap pop up then froze. Ugly.
 
Old news. When they first started doing this (awhile ago), I noticed it almost every week and complained to IB about it everytime. It has been awhile since one of my orders have been capped so it appears IB has fine-tuned the capping algorithm since then. Don't know when it is going to bite me in the ass in the future though.
 
Anything from Zerohedge is questionable. Even if this is somewhat legitimate, they have posted so much BS over the years that their credibility is shot.
 
atrocious said:
This has been happening for years, I'm glad ZH picked it up, it's scandalous that a broker would modify prices on customer orders without their consent and then think a pop-up window absolves them of their fiduciary duty to execute.

What really irks me is the price caps override the exchanges' own price banding algorithms in the case of CMEGroup and ICE futures. The regulatory safeguards are already there.

PS - I transact volume away from IB for this very reason in a fast market because I don't need the headache of challenging a missed fill, but I have no qualms about taking such a claim to arbitration if you're denied a legitimate fill in a runaway market.
More...

Know this:

Interactive Brokers has long held that they think they know better than you what is best for you. One other historic egregious example was the futures/IRA debacle where, on March 6, 2015, WITH ZERO NOTICE, IB abruptly cut off all futures trading in retirement accounts because the thought suddenly popped into their heads that trading futures in a retirement account might be risky for you. And that their judgement alone will be the determinant of what is best for you.


"If you want to understand today, you have to search yesterday."

---Pearl Buck
 
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