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Good for you. Assuming the CME implements
the program, I'll be happy if we can get a modest block of free cancels each
day.
Earl
----- Original Message -----
Sent: Wednesday, June 01, 2005 7:37
AM
Subject: RE: [RT] FW: [ibusers] New
Cancellation fee/Globex
Well Done
Earl!! BTW I also sent a note to them after yours with more or less the same
stuff.
Just received response from IB to my
email to IB Management:
Dear Sir,
In the next hour or two,
you will receive a notification by email with an update on the GLOBEX
cancellation fees issue. In short, GLOBEX has decided to postpone until at
least August 2005 their deployment of the fees for excessive messaging while
they review the policy. Accordingly, IB has also delayed the
implementation of these new charges and we will review our design and
pricing for excessive order cancellation when the GLOBEX finalizes their
policy.
More information
will be provided in the aforementioned notification.
Thank you
J Chait
Director, Client
Operations
Interactive
Brokers
Earl
----- Original Message -----
Sent: Tuesday, May 31, 2005 11:55
AM
Subject: Re: [RT] FW: [ibusers] New
Cancellation fee/Globex
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
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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