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Here is a link to the CME’s current
messaging policy: http://www.cme.com/trading/get/sup/messagingpolicy12089.html
Regards,
John J. Lothian
The Price Futures Group, Inc.
From:
realtraders@xxxxxxxxxxxxxxx [mailto:realtraders@xxxxxxxxxxxxxxx] On Behalf Of EAdamy
Sent: Tuesday, May 31, 2005 11:09
AM
To: realtraders@xxxxxxxxxxxxxxx
Subject: Re: [RT] CME Cancellation
Fees
Very interesting, Andrew, thank you. I checked the CME site and
find nothing on cancellation fees. Checked IB's CME discussion forum
and there is no indication that this is coming from IB and not CME. Can you
share any additional information regarding the source of this? While I don't
doubt what you say, I'm reluctant to post this information to the IB forum
without some firm basis in fact.
I wonder if some IB functions such as Trailing Stop are sending
cancel/replace messages on each tick to a higher high or lower low.
----- Original Message -----
Sent: Tuesday, May 31,
2005 9:23 AM
Subject: RE: [RT] CME
Cancellation Fees
...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.
-----Original Message-----
From: realtraders@xxxxxxxxxxxxxxx
[mailto:realtraders@xxxxxxxxxxxxxxx]On Behalf
Of EAdamy
Sent: May 31, 2005 10:54 AM
To: Realtraders
Subject: [RT] CME Cancellation
Fees
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.
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