Interactive Brokers (NYSE:IBKR) has just announced a set of novelties to its trading platform Trader Workstation which are aimed at improving the offering of the brokerage to its clients. The additional features which are described in an official announcement are likely to materially improve execution for clients in certain cases.
Interactive Brokers is enabling a Block Trading Desk, where customers of the firm which are aiming to execute large orders can do so in portions. This way clients of the firm can execute their trades in an orderly fashion without revealing the extent of the complete order and avoid being front run by high-frequency traders and keep the real size of their order hidden.
According to the official announcement by Interactive Brokers, the orders in excess of 10,000 shares and 100 option contracts will require no phone queue time or hold time.
“Working with the Block Trading Desk also offers the potential advantage of price improvement on options trades, including SPX and VIX contracts. Clients may also get pre-trade quotes ahead of time for any strategy,” an official statement of Interactive Brokers elaborates.
Adaptive Algo Enabled for Futures Trading
A relatively new tool in the arsenal of Interactive Brokers clients, the Adaptive Algo instrument is opening the door to institutional types of orders for retail investors. Normally such custom type orders are available only to firms and individuals with substantial resources to develop their own proprietary methods to execute them.
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Via the Adaptive Algo type of orders, the clients of Interactive Brokers can get the fastest possible fill at the best all-in price. The algorithm is designed to adapt to market conditions, while it is working. Previously available only for stocks and options, the Adaptive Algo is now also enabled for futures trading.
This particular type of order is very efficient when used in a market where the spreads are wide. In addition to its basic function, the algorithm also splits large orders into smaller pieces thereby preventing a quick move in the price to the detriment of the trader which is ordering the trade.
Advisor Compliance Assistance and Trader Workstation Updates
Interactive Brokers has also launched a tool that aims to help advisors comply with the numerous regulatory requirements with the Securities and Exchange Commission (SEC). The RIA Compliance Center is designed to ensure that they meet compliance rules and obligations and will be of particular help to start-up advisors.
Lastly the brokerage updated its platform to add some new customization options for its clients designed to make access to particular instruments faster and easier for those who are focusing on trading a more narrow list of assets.