All my orders are options and thanks for pointing out the priority status change. Yes I have been notified about losing the priority customer status too. My understanding is that this is a exchange-specific effect. Have you seen a big impact on fills? and are some exchanges better to use without the priority customer status?
Order-to-execution ratio too high?
- Thread starter NanoTick
- Start date
2000 orders per day, including placing new, modifying, and canceling orders.
Robert Morse
Sponsor
You should avoid pro-customer status if possible. As customer, you go ahead of firm/BD and pro-cust, but that is not the big issue. Customer fees are much lower than pro-cust fees. I can't speak for IB, but many introducing brokers like us have access to smart routes that can avoid most maker-taker fees as the give a first look to a market maker before landing on an option exchange. These routes are very popular. Those same MM won't accept pro-customers on those routes because the cost is too high,
Also, for automated traders that are subject to non-display fees, OPRA has an exception for Priority customers but not for BDs and pro-cust. Once you get hit with non-display fees this will increase your monthly OPRA cost from around $50/month to $2000/month.
https://www.opradata.com/specs/OPRA_FEE_Notice_9-30-2016_1.pdf
You should give me a call tomorrow.
Good luck..Bob
Also, for automated traders that are subject to non-display fees, OPRA has an exception for Priority customers but not for BDs and pro-cust. Once you get hit with non-display fees this will increase your monthly OPRA cost from around $50/month to $2000/month.
https://www.opradata.com/specs/OPRA_FEE_Notice_9-30-2016_1.pdf
You should give me a call tomorrow.
Good luck..Bob
Robert Morse
Sponsor
Cancels are not an order for the count. The new order or the modified order go toward the count.
Robert Morse
Sponsor
Do you have an open API where MD leaves the display? If that is true, IB might have to change their policy one day. I would focus more today on keeping your orders below an average of 390/day.
My AIP does not use MD from IB. It gets MD from a third party.
if I drop the orders to less than 390 a day I'd miss out on opportunities amount to far more than $2000 per month. I'm thinking divert to other brokers.