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I received a friendly phone call from Mike Hermanson of Rosenthal Collins,
regarding my Rescinded Fill. This was an eye opener for me as I have
discovered a very unplesant truth about trading the S&P Futures. Please read
this message if you trade any futures that are traded in the pits (open
outcry).
Mike, informed me that brokers on the floor may rescind (X-Out) one or more
trades, even though you may have received a confirmation of the execution.
Although it took about 3 minutes for Rosenthal Collins to get back to me (1
minute fo find out that my order was rescinded and 2 minutes to look up the
necesseary information and compose a message to be sent to me), it may take
as much as half an hour or more to inform you.
Now imagine this: You exit long postion at a limit order, then the market
tanks down and you find out even though you got the confirmation of your
trade, you may be short, and be loosing thousands of dollars because the
floor broker/CME decided not to fill your trade. It may happen to you.
This problems stems from the fact that executing brokers are not kept
accountable for their actions. CME seems more interested in protecting a
tick or two of profit for their fee paying on-the-floor members, than having
a fair and reasonable transaction. I wonder how would they like if I rescind
my orders after 3 minutes, when I see they are not profitable.
At the end, Mike was nice enough to credit my account for the losses I
incurred. In all fairness, I should say that in my opinion Rosenthal Collins
does have a good service and I will continue trading with them. It seems
that the system is unfair and the brokers are stuck in the middle of it.
Jack Bicer
+-----------------------------------------------------------
+ http://www.Bicer.com
+ Specializing in custom Trading Systems
+ C++ and Visual Basic Software Development
+ Los Angeles, California
+-----------------------------------------------------------
-----Original Message-----
From: omega-list-request@xxxxxxxxxx <omega-list-request@xxxxxxxxxx>
To: bicer@xxxxxxx <bicer@xxxxxxx>
Date: Tuesday, March 23, 1999 5:31 PM
Subject: Re: Rescinded Fills ?
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>------------------- returned message follows -------------------
>
>
>I'm currently dealing with a problem I have never dealt before regarding
electronic
>trading with Rosenthal Collins/Timberhill EFutures software.
>
>Today I put an S&P Limit order, price ticked through my limit and I got an
electronic
>fill confirmation on my screen, showing my ticket number and the fill
price.
>About 3 minutes later, I exited at the market for a profit. Immediately
after
>sending my market order, I received an electronic message from Rosenthal
Collins
>saying "The broker rescinded my entry fill".
>
>Unfortunately my exit order was executed at the market, and instead of
being
>flat, I was now in a long position, and by the time I exited the long
position
>(after inquiring about the message) a winning trade turned into a sizable
looser.
>
>
>I am a little puzzled. How can Rosenthal Collins/Timberhill rescind a fill
about
>3 minutes after it is filled?
>
>Has anyone dealt with such a situation? Any advice will be appreciated.
>
>I will post as to how Rosenthal Collins/Timberhill will resolve this
situation.
>
>
>Please email to me directly at bicer@xxxxxxx , as well as posting to the
list.
>
>
>Thank you,
>Jack Bicer
>
>
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