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John,
There are a few list contributors whose posts I read regardless of whether
the
substance is of immediate interest to me.
You are on that list. I find your comments to be quite valuable, and I
would
welcome more of the same.
Obliged,
Stu
----- Original Message -----
From: <I4Lothian@xxxxxxx>
To: <drwar@xxxxxxxxxxxx>
Cc: <omega-list@xxxxxxxxxx>
Sent: Friday, June 23, 2000 12:06 AM
Subject: Re: e-mini
> In a message dated 6/22/00 7:48:46 PM Central Daylight Time,
> drwar@xxxxxxxxxxxx writes:
>
> << So then when looking for a new broker what order routing system should
we
> be
> looking for to get the best fills? Or does it matter ? I am looking to
trade
> short
> time frames intraday.
> >>
>
> ***** What online system to chose and brokerage to open with is a good
> question and there is no one correct answer. Many different traders on
this
> list value one thing over another, or visa versa, and thus have selected
> different brokers.
>
> ***** For speed and commission cost, I think Interactive Brokers is
probably
> at the top. However, Interactive Brokers offers just barebone service and
> support. They do not have other brokerage operations to lean on during
> outages, thus you get a funnel effect for problem resolution or phone
orders
> if the system has problems. Disclosure: My clearing firm is an authorized
> reseller of the IB TWS.
>
> ***** Many other brokerage firms offering online trading have other
brokerage
> operations to lean on for phone based service if the online trading system
> goes down. An example other than my own operation would be Lind Waldock
or
> the LFG Division of Refco. LFG offers online trading via a system called
> Leo. It connects to TOPS and was I believe the first firm to do so.
Being
> first means you get to make all the mistakes the first time and Leo and
LFG
> had some bouts of this which were well documented on this list and others.
> From the reports on this list and others now though it seems to be running
> pretty well.
>
> ***** There are several firms that offer trading via a system from Rolfe &
> Nolan. Mine is one of them. It is also a system that connects to Globex2
via
> TOPS. Like LFG and other TOPS users, TOPS based systems are a little
slower
> than firms connect to the Frontal Interface or the FIX API. However, TOPS
> offers brokerages a separate order entry and order management system apart
> from their online system. Thus, when the online system goes down, a TOPS
> based firm can manage and manipulate the order via a TOPS terminal and
take
> new customer orders by phone. Large TOPS users like LFG or my clearing
firm,
> ED&F Man International, have literally dozens and dozens of TOPS terminals
> and experienced users. Thus, problem resolution is dispersed among the
many
> and there is no funnel effect trying to get an entire firm's order flow
> through a handful of Globex2 terminals during an online system outage.
And
> all systems and firms have outages.
>
> ***** Firms connecting the FIX API can manipulate their orders by using a
> Globex2 terminal, but experience a funnel effect. The CME has developed
an
> online order management tool, but have yet to deploy it. Firms will be
able
> to see their orders in Globex2 placed through the FIX API or TOPS. They
will
> be able to cancel the order only using this system. Perhaps later
versions
> will over more functionality.
>
> **** The real question then is to figure out which you value more, speed
or
> service. I would argue the service is better on the TOPS based systems.
I
> would agree the speed is better on FIX API and Frontal Interface based
firms.
> In the not to distant future though nearly a lot more firms will be
> accessing Globex2 by the FIX API, and then the decision gets back to the
> interface functionality, the price and the service.
>
> ***** I have seen many of the systems in use, including IB TWS, Leo, Best,
> etc. Only you will be able to figure out what is best for you. I hope
this
> helped.
>
> Regards,
>
> John J. Lothian
>
> Disclosure: Futures trading involves financial risk, lots of it!
>
> Disclosure: John J. Lothian is the President of the Electronic Trading
> Division of The Price Futures Group, Inc., an Introducing Broker.
>
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