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As one who began using these systems (original CUBS/TOPS/GLOBEX and
Interactive Brokers via Timberhill backbone) a couple of years ago, I
think your description is a very fair assessment. Between Jun98 and
Dec98, I had collected in excess of 100 CUB//TOPS/GLOBEX outage notices.
I filed complaints with the CFTC for permitting CUBS/TOPS/GLOBEX to be
deployed at a time when reliable 24x7 systems were no longer rocket
science and for allowing brokers to advertise such systems to the
trading public. At the time that the CUBS/TOPS/GLOBEX was experiencing
such problems, the backbone owned and operated by Timberhill was far
more reliable.
Since 01Sep99 I have observed one CUBS/TOPS/GLOBEX system outage on
11Nov99. This is a vast improvement! With the order system backbone
reliability issues apparently resolved; it is the systems, servers and
user interfaces offered by the various Futures Clearing Merchants which
will make the greatest difference to the individual trader. The
competition to provide both features and reliability can only benefit
all of us who trade from off the floor. Good and bad publicity shared
among traders will only help speed the process.
Earl
----- Original Message -----
From: <I4Lothian@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Saturday, February 05, 2000 6:58 PM
Subject: [RT] Re: Brokers
> Two years ago CUBS was a pilot program and there were 3 terminals, one
in the
> Live Hogs and two in the S&Ps. Two firms with early online systems
(LFG &
> Lind-Waldock) pushed CUBS terminals in the S&Ps into full production
in order
> to establish a foothold in the online order routing marketplace, IMHO.
>
> Some in the industry believe that political pressure was exerted at
the CME
> to restrict deployment of additional Cubs units in the S&Ps during the
pilot
> program, thus competition was minimized. This led to an excess volume
of
> orders being routed into a limited number of terminals and customers
suffered
> as a result. Interactive Brokers was at the same time offering online
access
> to the S&Ps at the same time via a different route (non-TOPS) and was
getting
> a good number of positive reviews on RT and other forums.
>
> Since that time the CME has deployed a second generation of CUBS
terminals,
> CUBS2, and the number of terminals has been expanded. There were 5
CUBS
> terminals in the S&Ps as recently as three months ago. Four remain
activated
> at the last report I received. One had been deactivated due to an
> enforcement action against 3 brokers and 7 locals in the S&P pit at
the CME.
> See Futures Magazine for basic details.
>
> CUBS terminals, like Electronic Clerk terminals at the CBOT, had
initially
> been granted to member firms for the most part, rather than
independent
> brokers. Since the deployment of CUBS2 though, terminals have been
issued to
> individual brokers and broker groups. Thus, there is more competition
and I
> believe customers have more choice.
>
> As a broker who uses TOPS, runs an online trading operation, and has
> participated in several order routing pilot programs, I am very
pleased with
> the service I am presently getting from the CUBS2 brokers we use.
(This is
> not a plug for my service, as many other firms may route to the very
same
> independent brokers). I have more than once received a fill on limit
orders
> on my TOPS printer before the quote even hit my CQG (CUBS2 clerks were
faster
> reporting the fill than the exchange pit reporters putting out the
trade
> quote). Market order routinely come back in 20 to 45 seconds in the
S&Ps
> from hitting the send button and seemingly quicker in the Live Hogs,
Live
> Cattle, British Pounds and Nasdaq pits where we have CUBS2 terminals.
>
> Besides the technology perspective, the human element has improved.
There
> are more CUBS2 users to compare notes and learn from each other.
Exchange
> staff has more experience supporting the users. More firms floor
staff have
> relevant experience. Overall, this aspect is much better than two
years ago.
>
> Thus, I think find an online system front end you like that offers the
> functionality you need combined with the trading floor network that
routes to
> CUBS2 and Electronic Clerk terminals you need and you will be OK.
Good
> support from the brokerage is a must too, but that is something you
can only
> judge from experience.
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