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There are very strict audit trail requirements of the NFA that all
brokerages must follow. Orders do not simply disappear.
You state that others have experienced problems with misplaced trades. That
is on your side and you should seek documentation. Proof that your order
was sent in is short of compelling as you really need proof it was filled.
If your order was confirmed it should show up somewhere on an audit trail
as such. Press the fact you are aware they are required to keep an accurate
audit trail and demand to know what happened (specifically where the fills
were assigned) on all executions on the price, day and time of your missing
fill.
They are not required to notify you unless you had a margin call. An alert
broker would certainly do so but if you were dealing primarily with a desk
that knew you only as number they could give a ----.
If you are entitled to a fill there WILL be a record of it and you should
be persistent in making them resolve the issue through the records they are
required to keep. Again, trades do not disappear.
Regards,
Tom Alexander
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From: Zeus <zeus4@xxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Brokerage question (futures)
Date: Thursday, May 06, 1999 4:37 PM
I have an account with a certain brokerage that due to software/server
problems has a habit of placing fills in different accounts. It happened
once prior, it was fixed. I came back from a week vacation to find out that
one of my fills is missing from their computers and I have a position still
open with a huge loss. One of my associates had the same problem the same
day. I have also talked to a number of their clients that have also had
many misplaced fills. I brought their attention to it as soon as I
discovered the error.
I am a daytrader, strictly daytrading. Should it have raised a flag with
them that the account had a position over night? Over a weekend? Should
they have tried to contact me?
I have proof that my order (market) was sent in. I use electronic execution
on their own software, which is risky of course, I know.
I used their software to check my fills and positions to make sure I was
flat that day and I was. My exit trade was confirmed, but since their
software will not allow you to print out the confirmation I don't have a
hard copy of it. I also have a witness for that whole day. Software showed
I was flat before I left on vacation.
They are showing that I held a long S&P position long while the market was
tanking and I was on vacation.
My thinking is: They misplaced my fill (position close) into someone else's
account. That person did not report that he had a trade that did not belong
to him and took profits after market tanked. My account was left with a
large loss and they are trying to make me pay for it.
Their system does involve a human, not direct access all electronic system.
Human error?
It is obvious that it is their error. They are claiming that first, it was
a week ago and there is nothing they can do about it, "Traders at the pit
have to accept fills no matter if they placed the order or not", it is an
electronic system/has faults/not their problem. They have been unable to
prove that I never sent the order in, or that they confirmed the order or
the execution.
My "expertise" is in stocks, not futures, therefore I reserve the right to
ask stupid questions. Any suggestions?
Not looking for any smart a%% replies or people shaking fingers PLEASE!
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Shay Horowitz
www.teamzeus.com
www.zeus-holdings.com
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