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Recently on another message board, a trader was complaining of erroneous fills...
"I enter trades intraday at limit prices, usually 2 cents above the ask on a buy. This is not for a daytrade, so not buying at the bid isn't important to me. The market is .27x.28 and I want 4K shares of 8600 offered. Order goes in for .30 on 4K limit. Market prints .27's and .28's below me, of which I get 1300 at .29 and 2700 at .30. I was the only print at .30 and .29. The b/a never went there. I called. They adjusted all to .29.
Again, it isn't the cash. It is the principle. I trade thru "firm X" which routes the orders thru "firm Y". The commish is cheaper and they have other services I like that preclude using "firm X" for an order like this. So the real question is, would the fill at "firm X" offset the higher commish given the same order?
It just bums me out somewhat that there seems to be such a lack of integrity throughout business."
Here's what I recommend if you are on the receiving side of an erroneous trade or bad fill(s):
Many times the B/D is not responsible and unaware of these incidents until a customer informs them. I have filed such grievances as a trader and handled them when working on an wildly busy order desk.
If you have all of the supporting data, reporting it to the firm's compliance officer is worth the effort. The normal course of action is, the 24 will bring it to the trading desk and then it's filed with Nasdaq after you have completed a short form. These complaints are usually resolved within 24 hours. The B/D doesn't want to lose your business, the contra doesn't want any hassles, and if the complaint has substance they will resolve it. If the contra doesen't agree, then Nasdaq will make the decision.
Good luck!
"I enter trades intraday at limit prices, usually 2 cents above the ask on a buy. This is not for a daytrade, so not buying at the bid isn't important to me. The market is .27x.28 and I want 4K shares of 8600 offered. Order goes in for .30 on 4K limit. Market prints .27's and .28's below me, of which I get 1300 at .29 and 2700 at .30. I was the only print at .30 and .29. The b/a never went there. I called. They adjusted all to .29.
Again, it isn't the cash. It is the principle. I trade thru "firm X" which routes the orders thru "firm Y". The commish is cheaper and they have other services I like that preclude using "firm X" for an order like this. So the real question is, would the fill at "firm X" offset the higher commish given the same order?
It just bums me out somewhat that there seems to be such a lack of integrity throughout business."
Here's what I recommend if you are on the receiving side of an erroneous trade or bad fill(s):
Many times the B/D is not responsible and unaware of these incidents until a customer informs them. I have filed such grievances as a trader and handled them when working on an wildly busy order desk.
If you have all of the supporting data, reporting it to the firm's compliance officer is worth the effort. The normal course of action is, the 24 will bring it to the trading desk and then it's filed with Nasdaq after you have completed a short form. These complaints are usually resolved within 24 hours. The B/D doesn't want to lose your business, the contra doesn't want any hassles, and if the complaint has substance they will resolve it. If the contra doesen't agree, then Nasdaq will make the decision.
Good luck!
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