Wavetrader, We have used this company a few times. http://www.nevada-incorporations.com/corpservices2.html#incorpstandard
04-30-02 - PSE - LHTQ - LH (NYSE) Aug02 85 Put Two orders sent around 10:20 AM. EST. I probably don't have to mention that Auto-Ex was OFF. I also probably don't have to mention that PSE was the only exchange on the offer at this price, otherwise I wouldn't have sent it there. But good for them for trying to compete for order flow by asking less. Market locked at 1.90 x 1.90 PSE on offer. Tried to buy 1.90, PSE wouldn't take it. (IB Best routing sent to PSE). Market unlocked at 1.90 x 1.95, PSE on offer again. Sent order directly to PSE, buy limit at 1.95. Still wouldn't take it. PSE Then moved off of offer, now offered @ 2.00 by CBOE.
I have my share of horror stories but I believe much of this can be explained by the archaic order handling at the exchange floors. If you are not auto-x'd , my understanding is your ticket is printed out and hand delivered to a broker. Cancelling involves the same process. Not exactly like pulling an ISLD bid. Perhaps someone who is more knowledgeable can explain all this, but if your trading depends on instant fills and cancels, better stick to ISE.
AAA, You are correct in how the orders are handled. Wavetrader, agree or not, your broker probably told you what I did, which lead you to come in here and vent it out. I'm not passing any judgement, just telling you what your description of the trade told me. I've been in the online brokerage biz 10 years, mostly in options operations...but hey, what do I know? What was the answer you got when you submitted a trade dispute?
zippie, all they said was that the trade looked good to them. They told me next time it happens to contact them by phone asap, and they'll put pressure on the exchange. However, it takes about 5 minutes to get to a live person...
AAA, alas, I only trade OEX options, which only CBOE handles.\, so I'm stuck with them. Most of the options are not auto-ex'ed. I wish there was at least one more exchange that does OEX options; it would be better for us traders.
That's the heart of the problem - MM's turn off their auto-ex systems so they will have a chance to back away from an order. In reality, these systems are supposed to be on and they are supposed to autoexecute, but this has never been the case in my experience, outside of the ISE, of course. The PSE is one of the worst when it comes to this.
Be prepared to lose some money following that advice. I am not saying it cannot be done; just that overall it is unprofitable. It takes, not 5 minutes, but 1/2 hour plus to fight that battle. Depending where the underlying moves, will determine the pain when you don't win, which is usually the case. We do this on a reguar basis, to keep them on their toes; net result is costs us some money.
Unfortunately, that's how it goes most of the time. Unless there is a GLARING infraction or mistake, most of the time you are stuck. Slugging it out with your broker is a necessary evil to get a trade cancelled and rebilled, but often they will find enough wiggle room to explain why they are not busting the trade. Hopefully the ISE will mature enough as an electronic marketplace to avoid these types of headaches in the future. Sorry, better luck next time.