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At Approximately 8:00 am Friday 07/17/98, I Placed a day order,
to BUY 4 CONTRACTS OCTOBER 1998 COTTON @ 76.65 STOP.
>From my Real-Time display I could see that my fill price of 76.65
was struck at 13:45.
I didn't get a fill report for over two hours, and I had to call
the broker's office at least three times before he finally
admitted there was a problem with a disputed "Bad Fill".
Even though he admitted that he felt the Floor Broker had screwed
up the order somehow, he still tried to get me to accept a Fill
at 78.50 which was not struck until well OVER 10 MINUTES (13:55)
after my price at was struck.
The Prices during the 3 minutes since my price was struck never
exceeded 77.21 which occurred at 13:48.
There were even several downticks to my price of 76.65 at 13.45.
The highest price reached FOUR MINUTES from my strike price did
not even exceed 77.50 which occurred at 13:49.
The Fill of 77.90 did not even occur until 13:51, a FULL SIX
MINUTES AFTER the market struck my price of 76.65.
07/17/98, 13:45, 76.650000,
07/17/98, 13:45, 76.700000,
07/17/98, 13:45, 76.650000,
07/17/98, 13:45, 76.850000,
07/17/98, 13:46, 77.000000,
07/17/98, 13:46, 77.000000,
07/17/98, 13:47, 77.100000,
07/17/98, 13:47, 77.100000,
07/17/98, 13:47, 77.150000,
07/17/98, 13:48, 77.210000,
07/17/98, 13:49, 77.300000,
07/17/98, 13:49, 77.500000,
07/17/98, 13:49, 77.400000,
07/17/98, 13:50, 77.350000,
07/17/98, 13:51, 77.900000,
07/17/98, 13:51, 77.900000,
07/17/98, 13:52, 78.300000,
07/17/98, 13:54, 78.650000,
07/17/98, 13:55, 78.650000,
07/17/98, 13:55, 78.500000,
07/17/98, 13:55, 78.500000,
07/17/98, 13:55, 78.500000,
07/17/98, 13:56, 78.500000,
07/17/98, 13:56, 78.500000,
07/17/98, 13:57, 78.300000,
07/17/98, 13:58, 78.300000,
07/17/98, 13:58, 78.300000,
07/17/98, 13:58, 78.300000,
07/17/98, 13:58,
07/17/98, 13:58, 78.300000,
07/17/98, 13:58,
07/17/98, 13:58, 78.500000,
07/17/98, 13:59, 78.300000,
07/17/98, 13:59, 78.100000,
07/17/98, 14:00, 78.200000,
Pursuant to CFTC By-Laws & Regulation 1.38 (a) and Regulation
2.01 (4b), of the Commodity Exchange Act, there is no such thing
as a "three minute rule", the letter of the law clearly states
that: "all purchases and sales of any commodity......shall be
executed openly and competitively by open outcry....".
The so-called "Three Minute Rule" is little more than a
"gentleman's agreement" or a "trading convention", and is not
accepted by either the CFTC or the courts as a legal or binding
premise.
I should like to point out that NO FLOOR TRADER has ever been
successfully defended using the "Three Minute Rule"!
Even if a floor broker holds my order just for 20 SECONDS while
executing first his own order or his friend's order he is not
executing my order competitively. He is in fact cheating me and
is in violation of both 1.38 (a) and Regulation 2.01 (4b), the
central antifraud provision of the Commodity Exchange Act.
It is obvious that the Floor Broker screwed up. I want to be
awarded my proper fill price that legitimately occurred within
the 3 minutes that my price was struck.
I do not consider a mere "CASH ADJUSTMENT" a satisfactory
reparation or sufficient recompense! I do however consider my
being promptly & properly awarded my legitimate fill price of
76.65 before the market opens Monday Morning 9:00 am 07/20/98 a
satisfactory reparation & sufficient recompense!!
If I cannot pursuade the Floor Broker to award me my proper fill
price, then I want to lodge a formal complaint to the full extent
of the law and exchange regulations.Pursuant to CFTC By-Laws &
Regulation 1.38 (a) and Regulation 2.01 (4b), of the Commodity
Exchange Act.
If any of you have had similar experiences I would like advice
and feedback:
1.) On the best method & strategy of lodging a complaint, and on
what grounds.
2.) Can anyone reccomend any any attourneys that specialize in
Futures Market complaints?
3.) Are there any Off-Siter Traders' Associations that provide
legal counsel, and backup in just this kind of situation?
4.) What are the customary options for "settling" with the Broker
and Floor Broker.
Thank you in advance!
Tony Parker
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