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Unfortunately until a RT in WWW trading costs not less than 10$ stay away from
any
broker-IBelectr. acc.. The theory and practice still drift too far apart
especially when it counts - -
fast mkt's.........
Richard Josslin wrote:
> Dear Group,
>
> As a result of the recent discussion of electronic order placement in
> general and LeoWeb in particular, I recently opened a LeoWeb account, with
> LFG. I regret, however, that, despite some of what I was told by my broker
> (an affiliate of LFG) and by LFG itself, and what I understood from the
> discussion here, LeoWeb has not lived up to my expectations --- perhaps my
> expectations were too generous. In any event, I'd like to enumerate some of
> my disappointments.
>
> 1. Segregated Accounts: I had understood from my broker that since it was
> an affiliate of LFG (my broker is an IB using LFG as its FCM), I could
> continue to trade my current account with that broker using LeoWeb. In
> particular, what I wanted to do was to continue to place my "planned" entry
> and exit price orders by phone to my broker (using direct floor access) but
> to use LeoWeb to place my "unplanned" market exit orders by LeoWeb (I don't
> use stop-loss orders). Wooops!!! LFG informed me that all LeoWeb orders
> must be for exclusively LeoWeb segregated accounts. In other words, one
> can't use LeoWeb to place orders for a traditional account cleared by LFG,
> and one can't use one's usual broker (who is an IB for LFG) to place orders
> for a LeoWeb account --- if you enter by LeoWeb, you must exit by LeoWeb
> (except for their upstairs support phone service).
>
> 2. Limited Markets and Types of Orders: LeoWeb order entry is advantageous
> (fast!!!) in those markets in which the order goes directly into the pit.
> All other orders go to a terminal by the side of the pit, where the order is
> printed out and run into the pit. Unfortunately, the only markets currently
> served with direct to the pit orders are S&P, Corn, and Hogs. Furthermore,
> the only types of orders in those markets that go directly to the pit are
> Market, Limit, and Stop orders; all other orders go to the terminal and are
> printed and run. Sounds good (when it's working) for the S&P. Any Corn or
> Hog day-traders out there?
>
> 3. Procrustean Service: All orders can be executed only objectively.
> LeoWeb does not allow one to give the broker any discretion in executing an
> order, for example, by using DRT orders.
>
> 4. Down Time: In the past week, I've experienced times, sometimes hours
> long, when LeoWeb has failed. No new entries can be placed (through
> LeoWeb), and exit orders not already in the market must be made by telephone
> to an upstairs broker, who then relays one's order by telephone to the
> floor. Today, I got an E-mail from LFG stating that their filling clerk was
> late to work --- all fills would be delayed by a half hour or more past the
> open.
>
> My limited experience with LeoWeb leaves me doubting that it provides much
> advantage over a floor access telephone ordering system except possibly for
> the S&P and that only for purely objective orders and during those times
> when LeoWeb is not inoperable. I've gone back to my former method --- the
> telephone.
>
> For your information, I enclose an E-mail that I received from LFG about
> their LeoWeb procedures.
>
> Sincerely,
>
> Richard Josslin
>
> Received from LFG:
>
> >S&P and E-Mini Rules
> >
> >S&Ps
> >
> >LFG routes orders in Top Step (front option) S&P futures to a broker
> >operated workstation (CUBS) in the middle of the pit. This workstation
> >only takes Market, Stop, and Limit orders. All other orders, such as
> >Market on Close, Stop Limit, Stop Close Only, etc., are routed to a
> >printer at the edge of the pit. This is important to know both in the
> >time it takes to get an order into the pit and the time it takes to get
> >information out of the pit.
> >
> >The TOPS/CUBS connection utilized by LFG is not perfect, and there may
> >be times when the connection is unavailable. In this instance, the
> >remaining orders are also routed to the edge of the pit and either
> >flashed or run in for execution. While we will make a good faith effort
> >to treat all orders with equal concern and attention, we cannot be held
> >responsible for any interruptions to the system.
> >
> >There is NO GLOBEX CONNECTION for the S&P 500 futures.
> >
> >Traders in the S&P, Nasdaq, and Mexican Peso (which all require a 6
> >digit price) should be aware that if the Order Type (like STP or MIT) is
> >selected BEFORE the price is entered, inputting the 6th digit will force
> >the Order Type back to the original default, or LMT. Traders who enter
> >the price FIRST and then select the Order Type will not notice this
> >situation.
> >
> >This condition has no impact on the PENDING screen, and users must
> >remember that they are responsible to doulbe check the order PRIOR to
> >transmission. This condition will be corrected in the next LeoWeb
> >release.
> >
> >
> >Cancel and Cancel/Replace Ticket Numbers
> >
> >Receipt of a ticket number (TOPS ID) is NOT a confirmation of an order
> >being cancelled, but only an indication that LFG has received your
> >request to cancel or cancel/replace a working order. A reasonable
> >period of time is necessary to ensure that the order is removed from the
> >executing broker's deck. A fill can be received for a cancelled order
> >in a situation where the request to cancel is TOO LATE TO CANCEL, and in
> >extreme conditions, such a report could come back significantly later
> >than the original request to cancel. If you are not sure as to the
> >status of a canceled order, please contact your support desk.
> >
> >E-Mini
> >
> >The E-mini contract is traded from 3:30 pm to 3:15 pm (Chicago Times)
> >without interruption. The LEO system, through the Exchange's TOPS Route
> >network, routes E-mini orders directly into the GLOBEX network, where
> >trading occurs electronically.
> >
> >Globex is a trade matching system which requires the constant attention
> >of the trader. This is because the system accepts only Limit orders.
> >Even though the exchange has crafted a pseudo "market" order, their
> >result is the possibility that a "market" order or "stop" could be
> >"unable", especially during extreme conditions when such an "unable"
> >would cause the most problems. Because of this, LFG determined that it
> >was in the best interest of the firm and its customers to keep the
> >system as simple as possible.
> >
> >For anyone entering orders in the E-Mini, all orders must be Limits,
> >orders cannot be "blocked", and all orders die at the end of the trading
> >day at 3:15.
> >
> >E-Mini orders are subject to the S&P "rules" for range, and during the
> >8:15 to 8:30 period especially, GLOBEX will REJECT orders which are more
> >than 700 points from the previous settlement (this is true for the whole
> >GLOBEX system). GLOBEX will also REJECT orders which exceed the circuit
> >breaker range then in effect. We have asked the CME to eliminate this
> >restriction, but until they do, be advised.
> >
> >Leo, Leo-Win, and LeoWeb users can call for Leo Support during the
> >evening and early morning sessions at [phone # omitted by RJ].
> >Check with your Leo Support Desk as to what hours they will authorize
> >your access to the system.
> >
> >Orders entered after 3:30 pm will work until filled, cancelled, or until
> >the trading day ends at 3:15 pm. Orders entered between 3:15 and 3:20
> >will be considered "too late, market closed", while orders entered after
> >3:20 will begin working at 3:30..
> >
> >Please call your Leo Support Desk if you have any questions about the
> >policies and procedures listed here. 9/16/97
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