IB joins TOM

24 Mar 2014

ib-logoMajor news today in the derivatives exchange landscape. The global retail broker Interactive Brokers (IB) will connect to TOM, The Order Machine. The official press release is short on details, but suggested the market share in Dutch options would surpass the 50% for TOM.

Depending on the exact details, this could be true. If all order flow will be routed to TOM by default, there won’t be much volume left on Euronext (apart from market makers trading with each other).

No TOM Smart Order Routing

It’s important to know IB will connect directly with TOM, without using TOM’s smart order router. IB has got it’s own smart order router for the US market. Unsure if they will use their own smart routing. The main point is the fee for trading on TOM with IB. The spreads in the market are the same.

For sure it won’t be able to beat DeGiro, with 85 cent per option contract.

Interactive Brokers is a listed company, and the parent of famous market maker Timber Hill. In the Netherlands IB is present with labels of Today’s and Lynx.

Price discovery still at Euronext

Currently, the price discovery process happens fully at Euronext. This could change with this new deal. Then again, it’s too soon to draw big conclusions. The press release was short, and one of the few facts was incorrect. Tried it myself, the connection with TOM wasn’t operational on March 24. Time will tell.

30 Responses to IB joins TOM

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anonymous

March 25th, 2014 at 12:01 am

first,

just to jog memory, tom is competing on costs? anything else?

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anonymous

March 25th, 2014 at 7:54 am

It’s partly owned by dutch market makers and banks. (optiver, imc, etc)

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anonymous

March 25th, 2014 at 9:30 am

“there won’t be much volume left on Euronext”
I guess you mean only ENX Amsterdam, right? ENX means also Paris, Bruxelles and Lisabon, and Luxembourg, afaik.

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anonymous

March 25th, 2014 at 11:13 am

I have a Lynx account and it is still not possible to connect with TOM. I heard maybe end this week…

I wonder if the spread on TOM is the same (or better) than Euronext? I can’t checked it because i have only Euronext real time quotes.

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anonymous

March 25th, 2014 at 12:19 pm

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anonymous

March 25th, 2014 at 2:23 pm

nah, spreads on TOM are basically the same.

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anonymous

March 25th, 2014 at 2:32 pm

so, the only advantage is fixed cost? how much savings can tom generate for average investor?

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anonymous

March 25th, 2014 at 3:16 pm

At this time the difference between Euronext and TOM fees goes into the pockets of the broker.

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anonymous

March 25th, 2014 at 3:25 pm

so the end investor can switch to a broker willing to share the cost saving or willing to provide flexibility to execute on either platforms?

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anonymous

March 28th, 2014 at 10:45 am

TOM is from today available on Lynx.

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anonymous

March 28th, 2014 at 6:31 pm

Big party in amsterdam: koen got fired!

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anonymous

March 28th, 2014 at 7:10 pm

which koen are you talking about? The one working at Optiver?

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anonymous

March 28th, 2014 at 11:17 pm

Must be Koen the Houseman?

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anonymous

March 28th, 2014 at 11:37 pm

who is the new MD trading Europe?

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anonymous

March 29th, 2014 at 1:41 am

who cares, somebody gets fired every other day anyways, next

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anonymous

March 29th, 2014 at 10:02 am

Any lower fees for retail investors trading on TOM?

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anonymous

March 29th, 2014 at 11:30 am

Trading TOM options on IB (Lynx/Today’s brokers) is only possible when you pay for real time quotes. If you don’t pay no transaction can be done, but Euronext options are perfectly tradeable under the same conditions. Strange…

This can obstruct a major move towards TOM.

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anonymous

March 29th, 2014 at 1:17 pm

who is koen?

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anonymous

March 29th, 2014 at 2:13 pm

“the comment itself is focused on industry, just take two more seconds to not sound like a perfect foreign retard when writing down a few basic words in english, and much more importantly not have such an ego and possibly some humility to raise your hand when you made a simple mistake”

Why are you so sure that this sounds like a foreign retard?

I (googled and) read on a blog about Wanstead (a city in London) the same grammatical construction. I’m not sure who is the autor of this article, but it is 99.999% certain that it is an Englishman and he writes:
“The Wanstead Magazine Club – which recycles interesting magazines in public places in Wanstead for the benefit of anyone who’s interested – is from today available in a third venue, Provender.”

http://www.wansteadium.com/wanstead-magazine-clubs-new-frontier/

Perhaps it is unusual, but not stupid

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anonymous

March 29th, 2014 at 2:15 pm

Edit: *author*

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anonymous

March 29th, 2014 at 6:03 pm

how did the Houseman manage to be fired?

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anonymous

March 29th, 2014 at 9:36 pm

no caps or whatever proper interpunfuck is, guilty as charged, now calm down and go out and enjoy the sun

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anonymous

March 30th, 2014 at 8:12 pm

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anonymous

March 31st, 2014 at 4:33 am

* removed the grammar discussion

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anonymous

March 31st, 2014 at 10:01 am

what’s with all the censorship mate?

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anonymous

March 31st, 2014 at 5:11 pm

If it is Huisman I’d be totally shocked! As a former IMCer I really hope it isn’t to make room for Ivo. That would be a huge mistake on their part.

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anonymous

March 31st, 2014 at 5:34 pm

most likely Houseman = Huisman

Why are you so shocked? The guy did not add much value to the business since entering the higher management.

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anonymous

March 31st, 2014 at 5:55 pm

what’s wrong to make room for ivo, why is that huge mistake

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anonymous

April 1st, 2014 at 9:59 am

The statements around Koen or Ivo should really be about what is expected of someone in the role of MD Trading @ IMC. A good trader is not necessarily a good manager or leader, in fact likely not, given the different left-brain / right-brain requirements by the two functions. Koen made a big difference at IMC when trading in Europe was majorly messed up and either making a loss or not exploiting the markets when their competitors were – his desk was the only one making some money. But as head of trading Europe, what has he achieved given what was expected of him? The former we can all have an opinion on, the latter, well we should ask Rob and Wiet what was expected of him.

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anonymous

April 1st, 2014 at 6:57 pm

why don’t you use your smart trading strategy analysis to print mios for the company rather than waste it on analysing stupid management politics right at the top

' '
  • anonymous: attempted to make money? [...]
  • anonymous: what did he do to be discharged in disgrace>? [...]
  • anonymous: @ 8:42 one is being sued by Getco for stealing the code, the other one discharged in disgrace. [...]
  • anonymous: sarcacm [...]
  • Anonymous: Chris Dowson [...]
  • anonymous: Anyone know what Craig Dowson is doing these days? Maybe he could be at Tibra [...]
  • anonymous: he doesn't need to be 'in know', any rational investor in timbra would be looking for a bid on their [...]
  • anonymous: @8:30 His name is Tim and the company is Tibra. You certainly sound like your in the know. [...]
  • anonymous: what happened to the two "game changers" hired last year by TIBRA (are they still in trading?) and w [...]
  • Anonymous: Heard that Tom berry, head of timbra is looking for a bid for his stake in the company. [...]

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