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Hi everyone,
I had a problem getting one of my orders filled recently and am trying to settle
with my broker. So I thought I'ld ask everyone's opinion - traders, brokers and
floor traders - what you think is fair and reasonable.
My dispute with the broker invovles an order I placed to sell 5 s&p's at a
stop price of 935.45 at 9:17 on 9/5/97. The broker admitted to me that the
order was not transmitted to the floor due to an error by their *new guy* until
9:22.
The stop was triggered at 9:19 however, and the market was moving down.
They filled the order at 9:23 at 932.25, four minutes after the stop was hit.
This is a difference of 3.2 per contract or 3.2 * 5 * $500 = $8000.
Market conditions were officially *fast*. The broker claims he has three
minutes to fill the order and, although it was their fault, he's only obligated
to fill me at the price most favorable to his position during the three minutes
after the stop was hit or 932.75. So he's offering a credit of 0.5 * 5 * $500 =
$1,250.
My position is that the order could have been filled at a much more reasonable
price had it been on the floor. The official CME time and sales ticks are:
9:19:15 93550
9:19:25 93525 <--- this should trigger stop
9:19:25 93520
9:19:27 93510
9:19:27 93505
9:19:27 93500
9:19:50 93490
9:19:51 93480
9:19:54 93460
9:19:56 93450
9:20:01 93425
9:20:03 93400
9:20:21 93375
9:20:22 93350 X (what does this "x" mean?)
9:20:29 93375
9:20:37 93400 X
9:20:39 93375
9:20:42 93350
9:20:50 93325
9:20:52 93320
9:20:57 93300
9:21:07 93280
9:21:26 93275
9:21:26 93270
9:21:28 93250
9:21:38 93275 <---- start of rally back up to 93400
9:21:38 93300
9:21:45 93275
9:21:55 93300
9:22:00 93325
9:22:00 93350
9:22:12 93360
9:22:12 93375
9:22:12 93400
9:22:17 93390
9:22:17 93350
9:22:24 93400
9:22:37 93375
9:22:42 93400
9:22:54 93375
9:22:54 93350
9:23:01 93300
9:23:25 93275
9:23:25 93255
9:23:29 93250
9:23:31 93260
9:23:39 93250
9:23:40 93200
9:23:48 93225 <--- Order Filled here (?)
9:23:48 93250
9:23:54 93225 <--- Order filled here (?)
9:23:58 93200
9:24:16 93225
9:24:18 93250
9:24:21 93275
9:24:21 93300
9:24:26 93325
9:24:26 93350
9:24:37 93375
9:24:37 93400
9:24:58 93390
9:24:58 93350
9:25:00 93400
I've seen a lot of fast moves in the s&p's where the prices changes in .25,
.50 or even 1.00 increments. During these times you can tell by watching
the ticks you're going to get a lot of slippage on a stop order. But this move
has several .05, .10 and .20 increments.
My tradestation/signal cable feed showed prices of 93525 93510 93505 93500
leading me to beleive I should have been filled around 93500.
The liquidity seems good too. There were 167 contracts traded between
93520 and 93500 (based on the CME's tick-volume data not shown). There
were 149 contracts traded between 93450 and 93500, and 304 contracts
traded between 93400 and 93450. This is a total of 604 contracts traded
from when the stop was hit down to 93400.
Floor traders: Where do think this order could have reasonably been filled?
Brokers: I'm willing to accept responsibility for my mistakes (order screwups,
"buy" when it should of been "sell", etc). Shouldn't a broker be responsible
once the order is in his hands? What's a reasonable settlement?
Off Floor Traders: What do you think I should ask for - how should I settle this? How have you had other disputes settled?
Thanks
Paul
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