WCE / ICE Concerns ---

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cliffg
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WCE / ICE Concerns ---

Post by cliffg » Mon Nov 19, 2007 10:34 am

I recently was sent this info from my broker re: WCE switch over to ICE

On Dec. 10th the WCE will commence trading on the ICE electronic platform.

This system is significantly different than the E-CBOT platform used for the past few years, and
unfortunately most of the differences are quiet negative from the average traders' point of view.

The WCE/ICE are being pressured to improve and modify the ICE platform, but for now the following
limitations and restrictions will apply as of Dec. 10th, 2007:

1> No GTC(Open) orders are supported. I repeat NO GTC ORDERS. Since there are no GTC orders, there is
also no afternoon order entry session. All orders must be re-entered daily as day orders.

2> No STOP orders allowed. They do allow stop limit orders.

3> Dangerous system regarding orders entered with prices at or above "reasonability" limits -- under the old system, if you enter
an order in error that is way off the market, it will be rejected as unreasonable. Under the ICE system it will be accepted, but only filled up to the maximum of the "reasonability limit". This would be a very expensive situation.

This platform is vastly inferior to the E-CBOT platform, and trading in WCE products is going to be both much more difficult and dangerous. They may be making improvements over time, but until then we will have to deal with this brutally bad system.

I forgot to highlight one other significant change:

TRADING HOURS:

Trading will open at 20:00 CT ( 8:00 PM CT)
Pre-Open for order entry starts at 19:00 CT.

There will be no 06:00 close and 09:30 re-open anymore.
Trading will be continuous through to 13:15 CT.

That means that the WCE will be open for trading from 06:00 to 09:30, while the CBT markets are closed.

WCE products will thus be trading through the release of Weekly Export Sales, and all major crop reports, both
StatsCan and USDA. This could create bizarre volatility in very thin conditions.

trendyguy
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Post by trendyguy » Mon Nov 19, 2007 9:43 pm

Cliff
My sincere thanks for posting this in advance. I am sure I would be one of the last to know.

cliffg
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Orders using ICE

Post by cliffg » Fri Dec 14, 2007 9:27 am

Has anybody done contract month rolls in canola via the new ICE system yet? If so, has it worked out ok?

Additionally, I am wondering how traders are dealing with the inability to enter stop orders in this system.

cliffg

RedRock
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Re: Orders using ICE

Post by RedRock » Fri Dec 14, 2007 10:29 am

cliffg wrote:
Additionally, I am wondering how traders are dealing with the inability to enter stop orders in this system.

cliffg
interactive brokers can simulate any type of stop you could want. They rock! :D

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Post by trendyguy » Fri Dec 14, 2007 2:33 pm

Hi
I rolled 24 contracts today using a spread. There was about 400 contracts on both sides when I did it. MFG allows stop limit orders(day orders only)
The limit is 4.00 from the stop price. Although not ideal, it is far better than no stops at all.

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Post by zacharyoxman » Wed Jan 16, 2008 11:18 am

IRS has been good for me. I've worked orders from 1 lot to 57 overnight and intra-day. Much like pit, I've always used limits and the fills have come thought in blocks. The spread is of descent size.

ICE is now taking SLM's on this market, as posted, which was a nice change from the other option (no stops).

Here is more information on SLM's:

Comm. (sym) Price ‘Max’ Trading hours -CDT Pre-open

WCE Barley (IAB) 212.2 $2.50 8:00pm –1:15pm 7:00pm

WCE Canola (IRS) 528.4 $4.00 8:00pm –1:15pm 7:00pm

Coffee (IKC) 134.8 0.6 12:30am –2:15pm 7:00pm

Cocoa (ICC) 2155 15pts 12:30am –2:15pm 7:00pm

Cotton (ICT) 68.33 0.25 12:30am –2:15pm 7:00pm

Orange Juice (IOJ) 137.55 $1.50 6:00am – 2:15pm 5:45am

Sugar #11 (ISB) 11.16 0.1 12:30am –2:15pm 7:00pm

U.S. Dollar (IDX) 75.815 0.2 7:00pm – 5:00pm 6:55pm

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