Curious as to why you think you would have 2 days of currency fluctuation on Norbert's gambit in CIBC? It's true that the CAD side of DLR is floating, but all you have to do is call a trader and they can journal the DLR.U to CAD and sell it within 5 minutes, all for $6.95. I'd doubt that the currency would move much during this time. The price is determined at trade time, not settlement.
is cibc charging a low online commission for phone orders that are handled by licensed reps these days? if so, that is relatively new. A few years ago cibc was charging a regular agent-handled commission for phone orders, i believe.
wondering if the new low phone order commission is only for gambit sells at cibc; or does it now apply to all phone orders?
even if restricted to currency gambit sell orders which have to be phoned in, a low $6.95 commission would be a very attractive feature, imho. The total cost of a gambit pair trade would become 13.90. This should certainly bring new clients in to cibc.
but one has to inquire: if doing instant gambits, why would one bother to use the DLRs? they are funds with spreads, why not go straight to an interlisted carrier stock with no fund apparatus to contend with.
the DLRs were invented a number of years ago, to deal with a gambit trading environment that has since changed a great deal. At that time, brokers kept gambit shares in cash or margin accounts that had gone long in purchasing the buy side of a gambit pair, for the full 3 days until settlement occurred. The lock-down feature of DLR.U was attractive, in that clients could thus wait for settlement without any currency change.
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