VIX Options Halted

[rallymode]

Quote from sellindexvol66:



i hope rally has some answers to save me the time of asking as i must protect myself better it seems.

The answer is go to a broker that doesnt auto liq if you run size. As far as the CFE issue the other day, well you can't be liquidated if the exchange is down

 

[macintash]

Right, but you can get liquidated on the first second when it opens, for some wide bid/ask..

Quote from rallymode:

The answer is go to a broker that doesnt auto liq if you run size. As far as the CFE issue the other day, well you can't be liquidated if the exchange is down

 

[Kevin Schmit]

Quote from rallymode:

As far as the CFE issue the other day, well you can't be liquidated if the exchange is down

IB will liquidate your positions in other markets. This happened to me via after-RTH bad marks in 2007. They closed out all of my forex positions. Fortunately, none were large that particular night.

 

[gmst]

Quote from Kevin Schmit:

IB will liquidate your positions in other markets. This happened to me via after-RTH bad marks in 2007. They closed out all of my forex positions. Fortunately, none were large that particular night.

Did they refund you because obviously it was due to the bad marks? Did they re-instate the positions later? Or perhaps was the PL change so small or even positive that you didn't bother.

 

[Kevin Schmit]

Quote from gmst:

Or perhaps was the PL change so small or even positive that you didn't bother.

This. The forex positions were small.

A series of frantic calls to IB support prior to market open fixed the bad marks so no further liquidation.

 

[rallymode]

Quote from Kevin Schmit:

IB will liquidate your positions in other markets. This happened to me via after-RTH bad marks in 2007. They closed out all of my forex positions. Fortunately, none were large that particular night.

They liquidated after hours? I have been explicitly told by senior management that they will only liquidate during regular trading hours for a particular product. I know, not exactly a guarantee should their algo clear your book. That's very alarming.

 

[TskTsk]

Yes, IB liquidates after-hours. This is a big problem as you often have very large bid/ask spreads after market. IB is great in most other aspects, but make sure your excess liquidity NEVER drops below zero. You will be ruined. Trust me.

 

[sle]

Quote from sellindexvol66:

sle, second q first; it was a cfe issue..reported by many media outlets. none of my stuff was in actuality against me..especially considering i am very balanced in vol exposure.
whatever happened, ib was quoting stuff crazy...like i had on some futs $31,000,000 against me..then similar for me elsewhere. i run some decent sizes but not like that.

lastly, i do believe ib would auto liquidate if the neg liq stayed there for a prolonged time...although certainly they must have known the whole thing was erroneous ..but u know how computers can just take over.

i hope rally has some answers to save me the time of asking as i must protect myself better it seems.

Right, that was my question - I knew that CFE disrupted for system reasons and my PB did not bother me about my positions. So it had to be driven by the broker - was this MtM dislocation/problem driven by IB alone or by other retail brokers too?

 

[sellindexvol66]

Quote from rallymode:

They liquidated after hours? I have been explicitly told by senior management that they will only liquidate during regular trading hours for a particular product. I know, not exactly a guarantee should their algo clear your book. That's very alarming.

when they extend their hours thats gonna be another problem. that last f up had nothing to do with any market bias either. i'll test the waters with advantage.

 

[rallymode]

Quote from TskTsk:

Yes, IB liquidates after-hours. This is a big problem as you often have very large bid/ask spreads after market. IB is great in most other aspects, but make sure your excess liquidity NEVER drops below zero. You will be ruined. Trust me.

No offense but i have evidence that says otherwise thus my surprise that Kevin got liquidated. I have somewhat sizable retail and institutional accounts with them and its unlikely that they[senior management] would lie to my face but in light of recent developments i am getting skeptical. Other than asking me to trust you perhaps you could elaborate on why you think they liquidate outside of reg trading hours.