So to start im based in the UK. I'm using AMP futures which is American. I use a CQG connection and am looking to trade oil.
It is my belief that the ICE Europe brent exchange is based in London?
I ask this because my internet connection takes 30ms to hit a server in London. Whereas it takes 125ms to hit one in America. This to me suggests I would be better off trading Brent in the UK rather than WTI on the Nymex?
Cqg is direct market access, it's my belief that my order goes straight to the exchange and wouldn't have to be routed to AMP in America and then sent on the exchange, is that correct?
Any help would be much appreciated!
Can you help answer these questions from other members on futures io?
AFAIK it's ICE Europe and London for the Brent.
From what I know you will have some network latency for orders, as the risk management is made in USA for CQG (but there are some pricing/orders servers in London).
CQG may have direct access but not you and your "retail" AMP/CQG account.
Thanks for the reply. I understand. For any sort of benefit to be gained from my location I will have to use a UK broker. I suppose I might aswell just trade WTI crude on the AMP account if my signal has got to be sent to the US anyway.
Not really, that's not that simple .
The broker can be from whatever country, but every network communication has too be UK based if you want to have the lower possible latency.
There are basically 3 main things to check:
- price feed: where the price coming from, which exchange(s) and where are the "relay" (CQG London for you I presume)
- risk management server: before sending an order to the exchange it has to be "valided" (do you have enough margin, are you allowed to trade this instrument, and so on). From what I know this is done in USA for CGQ, at least for now.
- order feed: to which location is your order sent (CQG London) after it's validated
Success requires no deodorant! (Sun Tzu)
The following user says Thank You to sam028 for this post:
If you look at the CQG infrastructure then it seems that everything is maintained within their servers. The brokers can lease the risk management services from CQG.
The following user says Thank You to Koepisch for this post:
Yes, but not all brokers are using this "option". According to usual CQG prices for their professional services I presume it's quite expensive and not a good choice for every broker.
Today NinjaTrader confirmed my Statement - really good News !
"When connecting to the London gateway and trading on Eurex, your orders will be validated for risk in London and routed to Frankfurt. Only a copy of the message will be sent to Chicago to allow the risk desk in Chicago to see the results of the order."
The following 2 users say Thank You to Koepisch for this post:
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