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Re: [RT] FW: [ibusers] New Cancellation fee/Globex

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I suggest that each IB customer send a message to IB Management at ibmgmt@xxxxxxxxxxxxxxxxxxxxxx
 
This is the message I sent:
Having read the information on the CME pages and a number of threads on the subject, I wish to express my opinion that IB's implementation unfairly penalizes the small trader who trades regularly but not necessarily on a daily basis.
 
Example:
 
Day 1: Enter Limit order to Sell @ 1200
       Enter Stop limit order to Buy at 1210/1220
       Cancelled due to no fill half hour prior to close - charge for 2 cancel
Day 2: Enter Limit order to Sell @ 1200
       Enter Stop limit order to Buy at 1210/1220
       Order filled - no net charge
Day 3: Adjust Stop limit order to Buy to 1200/1210
       Charge for 1 modify
Day 4: Adjust Stop limit order to Buy to 1190/1200
       Order filled - no net charge
 
Result: 2 fills, 4 cancel/modify, charged for 3 cancel/modify
IB needs to provide an allotment of free cancels for each day sufficient to cover several different open positions in CME products. I suggest 6-10 free cancels per day would be reasonable while preventing the big volume abuse by automated trading systems.
 
Earl Adamy
Earl
----- Original Message -----
Sent: Tuesday, May 31, 2005 11:43 AM
Subject: RE: [RT] FW: [ibusers] New Cancellation fee/Globex

Looks like the squeaky wheel got some grease.
 
:)
 
Andrew
 
-----Original Message-----
From: realtraders@xxxxxxxxxxxxxxx [mailto:realtraders@xxxxxxxxxxxxxxx]On Behalf Of EAdamy
Sent: May 31, 2005 1:34 PM
To: realtraders@xxxxxxxxxxxxxxx
Subject: Re: [RT] FW: [ibusers] New Cancellation fee/Globex

Thank you, Kate.
 
Poster "IB Soft Interactive Brokers" posted the following late in the thread:

It seems the CME/GLOBEX is reconsidering some aspects of their new proposal to charge for orders/cancellations. Based on our communications with GLOBEX, it seems likely that they will postpone the implementation of the new fee scheme until at least August 1.

Accordingly, as IB considers the imposition of cancellation fees as essentially a pass through of exchange charges, we will postpone charging for excessive order submission/cancellation for GLOBEX orders until the GLOBEX finalizes the details of their plan.

It remains clear to me that CME is targeting the non-member market makers who provide some additional liquidity. It also seems clear to me that IB needs to give their customers some latitude on this by implementing something along the lines of 5 free cancels per day so customers are not hit for routine adjustment of limit and stop/limit orders on position trades.
 
Earl

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