Q) I've heard that Assent LLC is ready to roll out an enhanced version of it's Anvil trading software that supports integrated native options trading. Is this accurate?
A) Indeed, Assent is pleased to announce that the newest version of Anvil (insert appropriate release #) now supports native options trading. In order to do so, we've made many important changes to our back end systems and developed new software that integrates options market data feeds that Assent traders will need to subscribe to.
Q) That's great news! But, can you clarify what you mean by "native" options trading?
A) Sure, that term means that you can trade options "inside" Anvil, without using any additional third party applications. And, when you trade options, you can now expect that the components within Anvil that should reflect options trading will now do just that. Specifically, buying power updating, PnL totals updating, checking to see that you hold the underlying security when selling an option so as to not violate the "no naked options selling" condition, etc.
Q) What kind of options trading strategies will Assent support?
A) Initially, we'll be supporting the purchase of puts, calls and the writing of covered puts and calls.
Q) Sounds great so far! I've been waiting for this for awhile. What else should know? Who is eligible to trade options? How can I get approved?
A) Great question. As per Assent's policy, current proprietary traders in good standing who are approved by their Branch Office Managers are eligible to trade assuming that they do not have a "special supervision" status in effect. Retail stand-alone accounts must have a minimum of $25,000 available equity in their Assent account in order to trade options, and also must not be subject to any "special supervision" or margin restriction conditions of any kind. Generally, individuals with limited trading experience will not be approved for options trading. Retail accounts must also be approved by their Branch Office Manager to be considered. Proper paperwork must also be submitted, where applicable.
Q) OK, but I operate an automated trading program, which some refer to as a "black box". Do I need to do anything special?
A) Well, as with any proposed options account, you must be approved to trade options by Assent. But, if you're using the Anvil API, you will need a new version of the API extension. Call the Assent Support Desk for more details. If you're a free form black box, we will need to handle on a case-by-case basis, as there are special server connections to configure for market data subscriptions and transaction submissions.
Q) We're an institutional account with Assent. Can we also trade options?
A) Shortly, you will be able to. We're finalizing the last pieces of the CMTA pass through and certain account allocation applications. Your Institutional support representative will work with you to get you up and running as soon as we're able to launch that part of our options program for institutional accounts.
Q) I'd like to know more about the account application and approval processes. What specifically do I have to do?
A) First, inform your Branch Office Manager of your interest. Secondly, make sure that your account is suitably capitalized. Third, you'll need to download the options application and information forms from our web site and review them with your Branch Office Manager. If you're part of a trading group, as noted, you'll need your Branch Office Manager to approve these forms as well before he or she submits them to our home office for processing. It's important when completing these applications that you be as honest as possible when describing your prior experiences and proficiency levels in trading and understanding options.
Q) OK, after submitting these forms, how long will it take for me to receive an answer as to my application and how does the notification process go?
A) If everything is filled out correctly, and all is in good order, we'll be able to get back to you and your Branch Office Manager as soon as possible. We'll send an e-mail to you and your Branch Office Manager when we've completed the review process.
Q) Does Assent need to individually "entitle" all trader ID's who will be able to trade options electronically?
A) Yes, each Assent trader ID who ultimately seeks to be able to trade options electronically through Assent's trading platform will specifically need to be individually entitled within our master database to trade options. Option trades will not be executed without traders being specifically approved for and entitled to trade options.
Q) What are the commission costs involved in trading options?
A) Please contact your Branch Office Manager or referring member for guidance and instructions.
Q) OK, aside from commissions, and clearance/settlement costs, are there other costs, such as market data subscriber fees, in trading options?
A) Yes. There are monthly costs to subscribe to options market data feeds that depend upon whether you are a professional or a non professional trader. Recent exchange rulings clarify that all black and grey boxes are professional investors, as well as "entities" such as institutions, corporations, LLC's, etc...Non professional investors are considered only to be individuals who are more or less trading on their own, or are not employing any automated trading strategies.
Q) What are the monthly subscriber fees for receiving options market data?
A) For most Assent traders, who are considered professional traders, the costs are $21 per month, plus applicable taxes. For non – professional stand alone, individual customers the subscriber rates are lower, at $1 per month, plus applicable taxes. These costs are “passed through” to trader accounts. Traders cannot access the options market data feed until they are specifically enabled to do so by the Hoboken office, which is done after the appropriate options paperwork is completed and approved.
Q) As it relates options market data, I've heard that these are some pretty robust feeds. How do I know if my trading location or my individual computer/laptop can handle these feeds without blowing up my equity trading?
A) Well, as we've said before, you need to have confidence that your connection to the Internet is robust and more or less meets the standard of "Performance Class" level, as per Assent's Systems Requirements Page on our web site http://www.assent.com/systemrequirements.php . If you don't have a robust Internet connection, or a router that allows for handling intra-day spikes, you may encounter issues keeping up with rapidly spiking options market data.
Q) I trade remotely. Will I be able to handle these robust feeds?
A) If your computer and Internet connection/router are performance rated, then you should be able to without difficulties. If not, then you may need to upgrade.
Q) Where do I get the trading software that I'll need?
A) As always, the latest versions of Anvil are downloadable at http://anvil.assent.com and you'll need build .61 or higher. Also, several experienced options traders may also want to supplement their options trading by installing some analytical software from MicroHedge, a sister SunGard company, which will be made available to Assent traders at a discounted price.
Q) So, in the new version of Anvil that supports options trading, will my buying power be updated dynamically to reflect options trading?
A) Yes, it's designed to update buying power. As well, Anvil applies the same risk metrics that exist for the equity side. If you're not clear on which risk metrics we're referring to, you can see them outlined on the Risk Management Page on our web site. Here's a link: http://www.assent.com/riskmanagement.php
Q) I'm a Branch Office Member and/or a referring member, and I'd like to make sure I can monitor the options trading my traders are carrying out. I'm used to using the Admin based PnL Risk Manager. Will this application now include options trading/valuations?
A) Through a process referred to as FIX Drop Copy, each equity and option order as well as execution record is picked up by Assent in real-time. We then update the Risk Manager to reflect such transactions.
