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MB Trading Futures - Introduction

  • #3,321
  • Mar 21, 2009 11:12am Mar 21, 2009 11:12am
Quoting napppeter
Hi,

I am trying to figure out, how MB sets its rollover rates. It certainly has some connection to the official benchmarks (fed funds rate, eonia, libor...) but how? Is there any information available, for example as provided bei IB (http://www.interactivebrokers.com/en...?ib_entity=llc).
I need this information for backtesting.

Thank you,
Pete
They take the rates they get from their PB and they mark them up. Those rates are derived from the interest rate differentials between the two currencies in the pair.
  • #3,322
  • Mar 21, 2009 11:35am Mar 21, 2009 11:35am
This is related to futures but are you going to offer Eurex futures http://www.eurexchange.com/index.html in your platform someday?
  • #3,323
  • Mar 23, 2009 10:11am Mar 23, 2009 10:11am
Quoting fxtrader42
They take the rates they get from their PB and they mark them up. Those rates are derived from the interest rate differentials between the two currencies in the pair.

Thats basically what I am asking: How are they marking them up? What is the algorithm?
  • #3,324
  • Mar 23, 2009 10:13am Mar 23, 2009 10:13am
justin what timezone is mbt metatraders server?

is is gmt, or eastern europe?

thnx
  • #3,325
  • Mar 23, 2009 2:13pm Mar 23, 2009 2:13pm
Quoting napppeter
Thats basically what I am asking: How are they marking them up? What is the algorithm?
There would be no algo for such a simple task. They would decide a percentage that they would like to make on swaps and mark up that much. From what I can tell, they mark up about 1-2%.
  • #3,326
  • Mar 23, 2009 10:02pm Mar 23, 2009 10:02pm
MBT demo had very bad quote on EURGBP last nite (3/23 at 17:30, quitting time) Was that due to everybody going home? Actually, I'd like to know if that was on the ECN server, or just a glitch due to the ongoing development of the MT4 connection. Did your beta testers see it too?
  • #3,327
  • Mar 24, 2009 3:46am Mar 24, 2009 3:46am
Hi MB Justin,

I've been reading about the horrors of bucketshops and I'm trying to understand the technology behind MBT so I have some questions for you if I can

So MBT is not a market maker or a deal desk but an ECN broker. Therefore your live prices given to retail traders are direct from your liquidity providers. OK, I see this so to check if your prices really are these prices given between banks, how do I do that? Do you have other sources where I can gather this information which are really the 'real' numbers in the real market?

I was thinking about market makers brokers and the numbers they have. Wouldn't a retail trader find it easier to compare from a reliable quote source, that way we know/guess who is/isn't fiddling with their numbers. Takes less energy and groups of retailers can discuss spreads and quotes differences making the quality of forex brokers better. Makes sense to me.

Thanks for your time, sincerely Pete
  • #3,328
  • Mar 24, 2009 7:10am Mar 24, 2009 7:10am
Quoting pa18
Hi MB Justin,

I've been reading about the horrors of bucketshops and I'm trying to understand the technology behind MBT so I have some questions for you if I can

So MBT is not a market maker or a deal desk but an ECN broker. Therefore your live prices given to retail traders are direct from your liquidity providers. OK, I see this so to check if your prices really are these prices given between banks, how do I do that? Do you have other sources where I can gather this information which are really the 'real' numbers in the real market?

I...
Sort of defeats the purpose of an ECN, which is to keep the system anonymous for all traders so everyone shows as much size as possible.
  • #3,329
  • Mar 24, 2009 7:19am Mar 24, 2009 7:19am
Quoting IndyTrader
Sort of defeats the purpose of an ECN, which is to keep the system anonymous for all traders so everyone shows as much size as possible.
Not to mention, the "real numbers" in the "real market" (as the prior poster stated) are the net numbers of everyone.

Let's say EURUSD:

Bank A: 1.3547 by 1.3550
Bank B: 1.3549 by 1.3552
Bank C: 1.3548 by 1.3550

Why does it matter? This means the market is 1.3549 by 1.3550, which is all a trader should care about. Plus, banks move their quotes by the second, you'd never be able to keep up. I never understand why people think that knowing what bank is showing what quote will help them. You've got a total picture of the market here. Now learn to trade!
  • #3,330
  • Mar 24, 2009 8:17am Mar 24, 2009 8:17am
Quoting napppeter
Hi,

I am trying to figure out, how MB sets its rollover rates. It certainly has some connection to the official benchmarks (fed funds rate, eonia, libor...) but how? Is there any information available, for example as provided bei IB (http://www.interactivebrokers.com/en...?ib_entity=llc).
I need this information for backtesting.

Thank you,
Pete
Pete,

MB Trading derives its interest rates directly from the participating liquidity providers and does not manipulate the rates provided. In order to provide the liquidity and pricing shown for each currency pair, we had to negotiate the rollover rates as seen in order to offer you the best possible spreads and liquidity we could.
  • #3,331
  • Mar 24, 2009 8:19am Mar 24, 2009 8:19am
Quoting napppeter
Thats basically what I am asking: How are they marking them up? What is the algorithm?
Pete,

We do not mark up the rates - not sure why this is a conversation. We pass through all quotes and rates directly to our clients and are only concerned with making our commission off the actually trading fee.
  • #3,332
  • Mar 24, 2009 8:20am Mar 24, 2009 8:20am
Quoting personkid
justin what timezone is mbt metatraders server?

is is gmt, or eastern europe?

thnx
Person,

MT4 is set to EST.
  • #3,333
  • Mar 24, 2009 8:48am Mar 24, 2009 8:48am
You said you are able to provide better rolls for high-volume traders, so obviously you have room for maneuvering?

Quoting jleblang
Pete,

MB Trading derives its interest rates directly from the participating liquidity providers and does not manipulate the rates provided. In order to provide the liquidity and pricing shown for each currency pair, we had to negotiate the rollover rates as seen in order to offer you the best possible spreads and liquidity we could.
  • #3,334
  • Mar 24, 2009 9:23am Mar 24, 2009 9:23am
Quoting jleblang
Pete,

We do not mark up the rates - not sure why this is a conversation. We pass through all quotes and rates directly to our clients and are only concerned with making our commission off the actually trading fee.

Justin,

There is no way that is true. Maybe MBTrading doesnt mark up the rates but TDFX does. One or the other your roll rates are way off current market rates.
  • #3,335
  • Mar 24, 2009 10:35am Mar 24, 2009 10:35am
Let me clarify this point again.

1)We are not a desk or bank. Our system doesn’t charge the rates and we are not interested (as is the case with our entire business model) of taking on the risk of positions against customers to earn/pay interest.

2)Therefore, we are subject to the rates charged to us (which are marked up, clearly) and passed through to our customers.

3)Our priority has always been to get the most liquidity with the tightest spreads from the most providers. We care more about creating a solid platform for active traders than about the rollover situation. Someday, we will also address that issue, but for now, we are subject to the limitations of not taking on risk, which is our model.

4)When someone comes to us that is a high volume trader, meaning over a yard a month in volume, there are various conversations that can be had because of the increased volume that they bring to the ECN. For most people, the easiest answer for that type of volume is lowered commissions as long as they maintain that volume, and I’ve gone as low as $3 per $100,000 depending on the monthly volume. In some cases, I can instead go to the banks above us and request a refund of some of the rollover rates at the end of the month based on volume, etc. It’s all open for discussion, but really ends up with the same net result, which is that people can get a discount for volume.

5)None of this means that we have direct control over the rates.

Hope this clears everything up.
  • #3,336
  • Edited 1:34pm Mar 24, 2009 11:15am | Edited 1:34pm
I dont know about the beta live but in demo there are BAD data everywhere, look... Will it be fixed?
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  • #3,337
  • Mar 24, 2009 12:10pm Mar 24, 2009 12:10pm
Quoting frito
I dont know about the beta live but in demo there are BAD data everywhere you look... Will it be fixed?
Frito-

Live quotes and Demo quotes are different. We do a lot of testing on the Demo environment, including forcing out of range prints to make sure that the system properly views them as out of range and doesn’t create an execution when it happens. Live quotes are smooth.
  • #3,338
  • Mar 24, 2009 2:33pm Mar 24, 2009 2:33pm
Hi Justin,

I'm an MB live customer.

I was wondering if you know when the MB Navigator PRO (that has integrated charts) will be released? What about the web based and the mobile Navigator platforms? I don't need a specific date but just an idea, next few months, end of year etc.

I'm also demoing the MetaTrader platform. The Daily bars/candles close and open at 12.00am midnight. Is there a way to have daily bar charts that close at 5pm when the NY market closes just like the Navigator (Intellichart) charts and not at 12.00am?

Thanks,
Rubin.
  • #3,339
  • Mar 25, 2009 8:13am Mar 25, 2009 8:13am
Quoting gorubin
Hi Justin,

I'm an MB live customer.

I was wondering if you know when the MB Navigator PRO (that has integrated charts) will be released? What about the web based and the mobile Navigator platforms? I don't need a specific date but just an idea, next few months, end of year etc.

I'm also demoing the MetaTrader platform. The Daily bars/candles close and open at 12.00am midnight. Is there a way to have daily bar charts that close at 5pm when the NY market closes just like the Navigator (Intellichart) charts and not at 12.00am?

Thanks,
Rubin.
Hi Rubin ~

Thank you for your message.

Nav Pro, our new advanced Navigator software package which does include sophisticated charting and screening is currently limited to a select group of 300 users and is currently maxed out. We will be expanding this new platform to the public soon, but I do not have an exact release date.

Nav Web and Nav Wireless are also in Beta and coming shortly.

You can submit MetaTrader questions/feedback to [email protected] and someone will reply.
  • #3,340
  • Mar 26, 2009 8:47am Mar 26, 2009 8:47am
Thanks Justin.

Quoting jleblang
Hi Rubin ~

Thank you for your message.

Nav Pro, our new advanced Navigator software package which does include sophisticated charting and screening is currently limited to a select group of 300 users and is currently maxed out. We will be expanding this new platform to the public soon, but I do not have an exact release date.

Nav Web and Nav Wireless are also in Beta and coming shortly.

You can submit MetaTrader questions/feedback to [email protected] and someone will reply.
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