|
PureBytes Links
Trading Reference Links
|
>
> I had a similar situation happen to me in the Surgar market a few days ago.
> I placed an order to buy back several contracts of Surgar at the market.
> At the time I placed my order, Surgar was trading at 9.41. My order went
> in 2 seconds later. About 15 minutes later the market traded at the high
> of the day 9.48. Within 3 minutes of placing my order, the market traded
> at a high of 9.44. When I got my fill back about 1/2 hour after placing
> the order, the fill was at, guess where, 9.48.
I'm not there, and I can't give a detailed explanation why, but NY can
be real slow posting trade prices. I work my orders on the phone, and
often will be filled, finish up my paperwork, get a cup of coffee and
look do a few other things before the trade print goes across the
screen. And in your case, on the CSCE, (at least in the old days) the
prices are not reported in any particular order. They may not do this
any more, but they used to write the trade on a card and flip it into
the middle of the ring where there was a guy with netting all around him
to catch the cards. He then would gather in the cards and punch in the
prices, in no particular order. (This may be different now).
> I was livid! I called my
> broker (Alaron) and they said that the rules of the exchange mandate that
> the broker must fill your order within 3 minutes of receiving it. My
> brokerage firm was sympathetic to my plea and after talking to the broker
> on the floor, agreed to cash adjust my account back to 9.44. This was
> still BS in my opinion because it represented 2 ticks away from where I
> should have been filled at 9.42.
It was nice you got the adjustment, but I do not believe they were had
to do it. I've found that if you do this very often and the brokers quit
taking the orders.
>
> But I didn't argue. It sounds to me like the same thing happened to you
> except that your broker and the floor broker are in cahoots.
The floor brokers in NY (for the most part) are separate from the
clearing firms and also are not guaranteed by a FCM.
> You need to
> demand a time and price review which will show when your order went to the
> floor, was filled and the prices at those times. If the fill is outside
> the highest price within 3 minutes after you placed the order, then you are
> entitled by the laws of the exchange to a better fill. Verify the time and
> price with a real time feed.
That means nothing in NY.
>
> Placing market orders in a thin market like OJ can be hazardous to your
> account. I will whenever possible use limit orders in the Surgar (and OJ)
> market from now on. There's too much opportunity in those markets not to
> trade them.
I agree, you simply have to understand it is not the bond pit.
The problem is, they were all set up with a different infrastructure,
from clearing on up to execution. Perhaps some day, as we move towards
common clearing it will force the NY procedures to be similiar to CME,
CBOT and KCBT.
|