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...and
that's a very misleading statement from IB. From what I can tell, CME doesn't
have a cancellation fee, but WILL be fining IB $2000 a day starting August 1st
if their ratio of messages to trades doesn't improve. For some reason IB has
decided to pass that on in the form of their own cancellation fee starting
tomorrow. Many other brokers are not affected, so we may see traders leaving IB
for more pleasant shores.
So far
today after modifications and missed fills, I'm down around $6 in cancellation
fees. Not a huge amount, but annoying nevertheless.
Andrew
CBOE implemented order cancellation fees to drive out off-exchange
traders who were competing too fiercely for business by narrowing spreads. At
the time, I complained to the SEC which took no action on this blatant move to
reduce outside competition.
The CME appears to have learned by the absence of any pushback:
The Chicago Mercantile Exchange (CME)
will be introducing new
cancellation fees and, as of June 1, 2005, IB
will be charging $1 for each
CME cancellation with a credit of $5 for
each CME executed trade. Execution
credits are applied against cancel or
modify fees for the day. Execution
credits cannot be greater than
cancel/modify fees.
I guess we will have to think twice
before entering a limit order which might not be hit or adjusting our stops
too frequently.
Earl
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