order efficiency ratio at IB

[MoreLeverage]

Did you ever resolve the issue? Did anything happen after the third warning?

TBD, hopefully won't find out.

 

[NanoTick]

TBD, hopefully won't find out.

I'm in the same situation. I'll let you know if something happens to me first.

 

[HobbyTrading]

May I ask roughly how many orders you place/edit per day? They don't seem to care about 200 orders a day regardless what the OER is. The warnings came about when I started place/edit about 2000 orders a day.

This is exactly the activity level as mentioned in the footnote of this page http://ibkb.interactivebrokers.com/node/1343

 

[TraDaToR]

That's IB major problem. You can't do some kind of passive quoting because you will reach their OER immediately.They implemented this policy back in fall 2010. At the time I had an automated system generating about 1/4 of my income and IB put it out of business instantly...This year I try some new stuff on stocks, Boom, here it is again...I am at second notice...Curious to see what will happen to you 3rd notice offenders...LOL

 

[ironchef]

Got a warning from IB about high order efficiency ratio (OER, ratio of order submitted vs orders executed). It says my OER is too high and I need to adjust my API algo. My OER has been around 150:1 (all orders are limit orders). Apparently after another incident my trading will be severely restricted. This time they specified an acceptable OER of 50:1, which I can meet with minor adjustment of my API. However I'm wondering if anyone has such experiences with IB or other brokerages and what a typical OER is.

I am curious, why do they care about OER?

 

[Benihana]

Since IB is so big, if they let everyone go crazy with their OER, maybe it eats significantly into their bandwith or possible fines from exchanges? Just guessing here.

 

[HobbyTrading]

I am curious, why do they care about OER?

IB mentions that in this article: "IB’s order management and routing systems are negatively impacted when the volume of orders submitted by clients is significant relative to those which are actually executed. Left unchecked, unproductive orders have the potential to slow system performance, adversely impact other clients and increase capacity requirements and costs. To minimize the load of such orders on internal systems and to comply with exchange policies, certain of which impose a surcharge for excessive messages, IB monitors order activity and may place restrictions upon clients who routinely submit a disproportionate number of unproductive orders." http://ibkb.interactivebrokers.com/node/1343

 

[Craig66]

Resurrecting this old thread, how did the posters get on with the IB and their OER?
I'm now getting this problem and wondering how others resolved it.

Can anybody using Lightspeed confirm this is not a problem with them?

 

[Robert Morse]

Resurrecting this old thread, how did the posters get on with the IB and their OER?
I'm now getting this problem and wondering how others resolved it.

Can anybody using Lightspeed confirm this is not a problem with them?

Craig66,
Are you a current client of Lightspeed?
What is your specific question?

You can call me after 7:30 am ET if you want.

 

[Craig66]

Craig66,
Are you a current client of Lightspeed?
What is your specific question?

You can call me after 7:30 am ET if you want.

Hi Robert,
Answering your questions in order.
* No
* Does Lightspeed place any minimum fill / send / cancel ratios on API clients.