No complaints about the new EUREX fees ?
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Scares me!
From IB:
Effective 1 December, the EUREX will implement new fees for excessive use of system resources. EUREX will consider any order submission, modification, or cancellation as a system transaction. Fees will be levied on users who create excessive system transactions relative to the number of executed orders, in excess of the ratio 5:1.
Accordingly, all order submissions, modifications, and cancels will be charged 0.50⬠per order. Executed orders will generate a 2.50⬠credit against other system transactions in the same product on the same day.
Examples:
1 initial order + 1 order modification + 1 order cancel = 3 system transactions (@0.50â¬) =1.50⬠charge
1 initial order (@0.50â¬) + 1 execution (@-2.50â¬) = 2⬠credit*
1 initial order + 4 order modifications + 1 trade = 5 system transactions (@ 0.50â¬) + 1 execution (@-2.50 â¬). Total = no charge
*note: execution credits are applied against total system transactions in the same product
I don't see a big problem with that unless you are chasing the market for 1 or 2 ticks all day. And I prefer the low exchange fees + "order submission fees in excess of 5:1" Eurex charges than the high exchange fees the cme charges upfront.
Effective 1 December, the EUREX will implement new fees for excessive use of system resources. EUREX will consider any order submission, modification, or cancellation as a system transaction. Fees will be levied on users who create excessive system transactions relative to the number of executed orders, in excess of the ratio 5:1.
Accordingly, all order submissions, modifications, and cancels will be charged 0.50⬠per order. Executed orders will generate a 2.50⬠credit against other system transactions in the same product on the same day.
Examples:
1 initial order + 1 order modification + 1 order cancel = 3 system transactions (@0.50â¬) =1.50⬠charge
1 initial order (@0.50â¬) + 1 execution (@-2.50â¬) = 2⬠credit*
1 initial order + 4 order modifications + 1 trade = 5 system transactions (@ 0.50â¬) + 1 execution (@-2.50 â¬). Total = no charge
*note: execution credits are applied against total system transactions in the same product
I don't see a big problem with that unless you are chasing the market for 1 or 2 ticks all day. And I prefer the low exchange fees + "order submission fees in excess of 5:1" Eurex charges than the high exchange fees the cme charges upfront.
If Eurex want to compete with US exchanges I can't believe that they can't afford the technology resources to deal with the overload of their system due to automated trading.
Obviously, there might be another reason. Well...
About cme/eurex fee. With IB you pay 2â¬/order on Eurex and 2.40$/order on Globex. If you add 0.5⬠here and there, you're about the same with a possible disadvantage for Eurex.
In the meantime, I prefer to concentrate on the ES with wich I can achieve about the same results than I had on estx50.
Obviously, there might be another reason. Well...
I can understand that theses rules are not a problem for everyone. It depends on trading style.
About cme/eurex fee. With IB you pay 2â¬/order on Eurex and 2.40$/order on Globex. If you add 0.5⬠here and there, you're about the same with a possible disadvantage for Eurex.
Hmmm... I plan to do so. Before that, I'd like to give it another chance but I'll have to adapt and change my method.
In the meantime, I prefer to concentrate on the ES with wich I can achieve about the same results than I had on estx50.
I can't see how anyone is going to get stung by these fees. Has anyone really had to pay the fees? Its almost impossible, if you actually execute an order occasionally.
Some automated systems put numerous orders into the system outside of the market and then shadow the market until a certain level is reached. Then they'll wait for a fill and cancel the orders at price levels below that. They are attempting to get an early place in the queue, but they are burdening the system with many orders and updates that have no chance of a fill.
There are other tricks like this. Sometimes a size trader will show a large bid in an attempt to scare the market up one more level, then when that bid has a chance of getting filled, it gets pulled instantly. Ex: I've seen a bid/ask size of 400 x60 go to 40 x 60 in one second.
I like to shadow the market myself before I submit an order, but I do that on TWS and then transmit the order at the last second.
Some automated systems put numerous orders into the system outside of the market and then shadow the market until a certain level is reached. Then they'll wait for a fill and cancel the orders at price levels below that. They are attempting to get an early place in the queue, but they are burdening the system with many orders and updates that have no chance of a fill.
There are other tricks like this. Sometimes a size trader will show a large bid in an attempt to scare the market up one more level, then when that bid has a chance of getting filled, it gets pulled instantly. Ex: I've seen a bid/ask size of 400 x60 go to 40 x 60 in one second.
I like to shadow the market myself before I submit an order, but I do that on TWS and then transmit the order at the last second.
If you think that nobody has to pay those charges, this seems like a pretty senseless measure, don't you think. For me there were several other reasons for quitting the ESTX-50, i.e. the crappy e-signal datafeed, but this thing was kinda closed the door. I did about 40 to 50 trades a day for 5 to 10 point moves and i didn't want this on my back. if i want to cancel an order or whatever i don't want worry about of some charge that might eat part of my profits. when you take a trade you want to know exactly what it cost or got you and not wait for the bill to arrive the next day to see how you really did.