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Need Help: Urgent Broker Problem (Phillip Capital: NT Brokerage, Edge Clear)
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
Thanks Received: 10,207
Can't speak definitively on this, but if we consider TTs older XTrader it was a distributive system. If a gateway failed it only affected the people attached to that specific gateway. New/Cloud TT though is centralized, everybody is connecting using the same core connections. If TT have an infrastructure problem, or push out bad code, it now affects everybody. I suspect this centralization is creating single point of failure issues that didn't exist before. The price of progress!
Yes. Complex systems are inherently fragile, and becoming increasingly complex, interdependent, and thus more vulnerable by the day.
If you have a futures trading account with a discount brokerage firm, consider opening another account with a larger brokerage, preferably a very well capitalized firm with very robust technological resources. This way your trading capital will be spread out a bit and you will be less likely to be locked out of the markets should something go wrong.
Broker: Broker: Trade Future 4 Less. Data Feed/Order routing: CQG
Trading: DAX; ES; Bund Futures
Posts: 77 since Oct 2018
Thanks Given: 49
Thanks Received: 57
SMCJM - I basically agree with you, but if CQG are not involved with the margins/intraday margins why would they issiu a message like the one, posted by Comeback King yesterday:
CQG - Order Routing Problems - Continues
CQG just provided update (Below) - we are starting our Emergency Actions.
We will begin closing any positions on accounts that do NOT have the 100% Exchange Margin Requirement to carry the position.
> If we close an open position, we will disable trading, so you do not close an Open position showing on CQG > that we already closed on the Exchange.
> If you are not using Compound Orders (per CQG notice below) - your orders and positions should NOT be affected and you can close any open positions you feel are accurate.
The "we" in the above is not CQG but the FCM. Certain discount brokers offer clients reduced margins, but with the issues CQG was having yesterday, the broker in question decided to play it safe and demand full margins.
@TraderMich, the message you quoted was not issued by CQG, but by @Comeback King's broker, which was notifying their customers that they (the broker) would take this action based on the margin in the customers' accounts.
The broker was moving to protect itself, that's all. It could have a liability issue with its clearing broker if there were large losses by its customers. It would prefer not to be holding the bag for undercapitalized trades.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
@TraderMich I don't have a horse in the race here. I'm just trying to help improve the information flow and try and let people understand that what 'who' they think is the problem, may not have anything to do with the problem at all.
Broker: Broker: Trade Future 4 Less. Data Feed/Order routing: CQG
Trading: DAX; ES; Bund Futures
Posts: 77 since Oct 2018
Thanks Given: 49
Thanks Received: 57
Yes SMCJB I understand you good intensions and appreciate very highly that you explain the infrastructure, and are very active and a resource in this forum, thank you.
I think the confusion from my side is that the the FCM's are deciding the Intraday margin but the order routing companies (in this case CQG) are "setting" the margins in their own system based on the FCM rules. - In this case CQG are both data provider and facilitating the order routing from the trader to the exchange. But in other cases the data and routing can be separated in to two independent entities.
Again my intensions was not to start a discussion with you as I appreciate you knowledge and that you are active here and helping us all.
