SMH on IB

P

praetorian2

Guys,

Quick question. I'm sure this has been answered before.

When you trade SMH on ib, they no longer let you just cross the book and sweep the ecn's. Now you must be best bid forever or eat the offers. The problem is that AMEX is slow and IB keeps routing to him. In a fast market, he is really slow and just picks you off and holds your order. Is there a way that I can route only to island/arca and avoid amex/nyse?

In a fast market, there is no way to execute without at least 15c or slippage, even though I can see the offers out there, I just can't eat them. I generally swing 10-30 at a pop using market orders. I understand that there will be a few cents of slippage to move that much size, but I don't mind. I just don't want AMEX to catch me all the time.

Thanx for your time,

Harris:.
 
can't you just pop up the ARCA and ISLD exchange lines when adding the symbol to the exchange? (or on the routing destination, you can choose the exchange via the drop down menu).
 
Def- I can, but if Amex has crossed the market, I can't hit an island bid under him for instance. I will just show as a limit order a penny above his bid.

Arca orders cancel if not executed against for some reason.

I want the ability to sweep without a route to Amex.
 
It's not just IB. I have noticed this on my platform (sterling) as well. If you try to hit a bid or offer on island, and island is not the best quote, it changes to a limit at the nbbo and it sits.

I think it is a change in routing protocol due to the no trade through rule. I guess island had to agree to this in order to start having their quotes disseminated again. It also may have something to do with the affiliation between island and cinx. Just speculating, but there has definitely been a change.
 
Quote from def:

i think mgkrebs is correct and this has to do with the trade through rule. Perhaps a complaint to the AMEX could spark some action.
More...

Forget about that def. You might as well yell at your dog. :D Hopefully they (AMEX) will be out of business soon. In the mean time they will pad their pockets at any expense.
 
Well, it really is bullshit. Wish there was some way that IB could just change the routing order so that at least it goes to NYSE or something over amex.
 
I think the issue the AMEX is showing the best price and thus it must be routed there. I don't know if it is feasible to exclude AMEX from the SMART algorithm at this time. Perhaps an alternative would be to cancel the order when you see it hit the AMEX and then route directly to the NYSE or other ECN.

Nordic is probably right but given the current focus on specialist fills on the NYSE, perhaps a complaint might make a difference.
 
Quote from praetorian2:

Guys,

Quick question. I'm sure this has been answered before.

When you trade SMH on ib, they no longer let you just cross the book and sweep the ecn's. Now you must be best bid forever or eat the offers. The problem is that AMEX is slow and IB keeps routing to him. In a fast market, he is really slow and just picks you off and holds your order. Is there a way that I can route only to island/arca and avoid amex/nyse?

In a fast market, there is no way to execute without at least 15c or slippage, even though I can see the offers out there, I just can't eat them. I generally swing 10-30 at a pop using market orders. I understand that there will be a few cents of slippage to move that much size, but I don't mind. I just don't want AMEX to catch me all the time.

Thanx for your time,

Harris:.
More...

Listen you may not want to hear this but it seems the obvious answer to me is you get your butt out of a place like IB. Your trading a hedge fund with size and your worried about not being able to hit ISLD or ARCA immediately to move size and not get held up by the AMEX. Well go find a direct access broker using Realtick etc and drop these IB guys. IB is not for you if you are trading size like that anyway because your costs as far as commissions would be better if bundled up under a per ticket price if your swinging 10k-30k. Furthermore, I am sure you are not just having the problem with SMH there must be plenty of other ETF's and stocks that you are having this problem with. I trade a large account myself but not a hedge fund. There may be reasons I don't know of that cause you to stay with IB but on the surface of your question I feel that this alone would be enough to motivate me to get the hell out of there if I were trading a hedge fund with size.

I trade with Terra Nova using Realtick. I am not advocating them in anyway form or fashion. Tradestaion or any other broker that utilizes a better system that allows you to route easily with click and point instead of the clumsy method of IB would be better suited you. As far as those IB supporters out there, this is a reply geared to the original poster only. The rest of you guys please spare me the IB debate rhetoric.
 
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