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Hi Visavis,
At the least, you have some very valid questions for your broker.
In quanities of 30 or less, the mini is not traded in a "pit". It is traded
electronically on Globex. This is the ONLY way it is traded. I do not
understand why you had a problem getting a fill on a market order, or a
timely report of your fill. True, the only orders accepted on the Globex
system are limit orders, but by selling at a price just above the current
offer, or buying just below the current bid, you affect a market order and
will get filled immediately. We have traded dozens of the mini over the
last two days, and even in the volatile, extraordinary conditions that have
existed, the fills are practically instantaneous.
If you were told the pit was too busy, well, what pit? Find out exactly
what they do when you give them an order. Are they entering from a terminal
right on their desk? It sounds as if they have to turn around after you
have placed your order, pick up the phone and dial another desk, and then
wait until (if) someone picks up and have that individual enter your order.
That would allow for even further delays if that desk is busy and has to
call your broker with your fill, who in turn calls you.
I am not aware of the margin requirements having been raised, though they
may well have been. Minimum margin requirements are set by the exchanges,
but the firms can charge a higher minimum if they choose. In this instance
it sounds as though you were the victim of poor communication. It is YOUR
responsibility to be aware of the margin requirements but it is very poor
service not to have been advised by your broker PRIOR to entering your
first order of the day of any change that was obviously going to have
potential impact on something you were about to trade.
Regards,
Tom Alexander
----------
> From: Visavis <Visavis@xxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: GEN: URGENT: EMini S&P 500 fill limit
> Date: Wednesday, October 29, 1997 12:51 AM
>
>
> ReatTraders / Tom Alexander:
>
> Its not a Hello anymore!
>
> I got some BIG problem in the fill of my eMINI S&P500 today. I am short
of
> the Emini yesterday, then at around 9:00 CST today (after 30 minutes of
> NYSE opening) I called my broker and ask for the bid/ask price, because I
> found some problems with the internet live quote of the CME Emini Globex,
> then the broker said the bid/ask is at around 860/861. I immediately hit
> the market with a buy # of EMini at the market and wait on the line for
the
> fill, after some minutes my broker said I had to tried to call after 10
> minutes because the pit is too busy for the fill report. Then I call
back
> 4 times one after 30, 60 minutes and 2 and 3 hours but cannot get my fill
> till 2:30 pm CST and got a report of fill for 903.75.
>
> Such an awful fill difference from 861 to 903.75. Is this valid?
>
> I ask the broker about this and said that I got a bad order and rejected
> right away from the electronic trade placing system because the price run
> away from me which if in market order when the current last executed
price
> differs for one whole point or $1 (4 ticks of a quarter/$12.50) the
system
> automatically rejects my order even if its a MARKET ORDER. is this
> correct? or stated in the EMini information material of CME?
>
> My order was executed at 903.75 because its automatically done by the
> broker because of today's volatility the margin was increased from $2100
to
> $6000 per contract to keep up with my account equity.
>
> Any comment? please...
>
> _____________________________________
>
> Warm Regards!
>
> Visavis
> Visavis@xxxxxxx
>
> _____________________________________
>
>
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