Maybe you missed this, but IB did solve this problem by providing each customer a choice as to whether to exclude NYSE from SMART's routing decisions, and also from your market data lines. Please don't make it sound like IB-SMART has a limitation which it does not actually have in reality.
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Price improvement with IB
- Thread starter Option Trader
- Start date
Maybe you missed this, but IB did solve this problem by providing each customer a choice as to whether to exclude NYSE from SMART's routing decisions, and also from your market data lines. Please don't make it sound like IB-SMART has a limitation which it does not actually have in reality.
The point is that one first has to lose opportunities before it even dawns on him that smart route isn't gonna do the job, then everytime he places a trade from then on he has to go through this sequence.
Quote from jimrockford:
The last time I heard this, I tested the feature, and I immediately discovered that it still did not work, because of multiple bugs, and I submitted one or more trouble tickets or emails, which are no longer available in the system, and if I remember correctly, I was told that the info had been passed on to the developers, and that no info was available as to when the bugs would be fixed. This was a long time ago. Is it possible that the bugs were fixed without any announcement in the release notes?
If I recall, one of the bugs I found, with this feature, was that orders were SMART-routed to NYSE even though auto-ex was barred by the five-cent-rule. I had previously reported this bug, I was told it was fixed, but when I tested it, the same bug happened. I believe the other bug I found was that orders would route to NYSE even though auto-ex was barred by another rule which blocks auto-ex whenever a better price is available on a competing market center, even if that better price is only for 100 shares, or is otherwise not covered by the trade-thru rule.
The 5 cent rule had been added a while ago.
When a better price is displayed by another market center, the Smart router should send the order there and not to NYSE or NYSE-NX.
Please try again. Thank you.
Quote from jimrockford:
No, your order SMART-routes to NYSE because NYSE is DISPLAYING a better price, not because NYSE will EXECUTE at a better price. NYSE often displays the best price, but then executes your order at a worse price than you would have received if you had routed it elsewhere. This is one reason why people like to be able to exclude NYSE from SMART. You need to have special skills, compatible with your particular trading strategy, in order to get good NYSE execution prices.
excuse moi but did i say 'u get executed at a better price' or 'there's a better price'[?]
i thought many times ib will match the nyse best bid or ask internally with a timberhill fill?i trade threw a few prop systems were you can direct orders quickly to any exchange and believe me if a nyse stock is moving going threw nyse takes forever with terrible fills. but many times if you route threw arca or inet the fills are even worse as the spreads are wider there. i really think ib's nyse fills are better than any prop fills i've seen were the orders can be directed. why not set up an arca key with ib so if there's shares there you can bang it?
Quote from joeyata1:
i thought many times ib will match the nyse best bid or ask internally with a timberhill fill?i trade threw a few prop systems were you can direct orders quickly to any exchange and believe me if a nyse stock is moving going threw nyse takes forever with terrible fills. but many times if you route threw arca or inet the fills are even worse as the spreads are wider there. i really think ib's nyse fills are better than any prop fills i've seen were the orders can be directed. why not set up an arca key with ib so if there's shares there you can bang it?
i keep arca and island ladders ready and armed side by side together with smart...if the spread becomes attractive and there's shares available i hit 'em. u can also populate your tws with the stock tradin' @the ecn of your choice.
That's about 4%. Bitstream claims if they would have been routed to BOX, it would have been a DRASTIC difference, and IBsoft says it would make NO difference.
Quote from Option Trader:
Will try again.
http://www.interactivebrokers.com/en/trading/orders/block.php?ib_entity=llc
Thanks. I've read this already.
But the page doesn't say how it works and how it's better than unmarked big orders (big orders without block mark).
Quote from loufah:
Out of curiosity, I just went through my logs. Out of my ~900 option orders filled this year, 40 received price improvement. 39 at BOX, 1 at CBOE, 0 at ISE.
u get better prices at box for the obvious reason they are quoted in pennies...i mean this is simple math and probabilities...how likely is that u get a full tick price improvement vs a few pennies?
your stats are similar to mine and they tell the tale about box.