here: http://www.tradearca.com/exchange/pdfs/CEEguideline.pdf Is Arca's policy on clearly erroneous orders. Seems fairly similar to INET.
ARCA is a little more fair in that 15% off (or $2) is the bustable window. However, they have busted trades on me that are less than 15% off and less than $2 off. So basically ARCA has the final say - the clearly erroneous policy is only a guideline. INET's 3% off rule is just way too narrow a window when you are dealing with earnings reports during pre or post-market trading. And you would think that these ECNs would take context into account - for example on earnings reports, it seems like the bustable window should be expanded. But they don't.
sometimes it's not the ecn busting trades. often times they go for a ruling on the floor. I'm always tring to get semi-erronous fills so I'm familiar with the process... mnx
Stocks trade all kinds of wild prices in the pre/post market on earnings. This case sounds pretty bogus. From what I gather the stock did trade down a healthy % so who is to say what is a fair price. The other night, that piece of junk BIDU traded 84 72 77 70 in the after hours on earnings. Glad my purchase of a $20 stock for a penny stood a few years ago ;-) Caught them sleepwalking.
Glad my purchase of a $20 stock for a penny stood a few years ago ;-) Caught them sleepwalking. You couldnt have gotten too many shares at a penny. Nice % return on your money.
They're definitely hit & miss on who, when & how they enforce the "erroneous rule" to. I've read (contrary to a previous post), on their sites, that both ISLD & ARCA will (roughly) bust anything over 10% afterhours, and 5% during market hours, away from the market. I've had stuff busted less than 1% away from the last in pre/post market. I've also had things stand 10+% away from the market. No consistency. They really need to get their acts together on this.
Nah. If they got their acts together they wouldn't be able to suck up to the big guys and screw the little guys.
What I'm confused about is what you all are referring to as % away from the market. The NBBO is the only thing we should be concerned with and if a trade occurs away from this quote (market) even a penny, the trade should be busted (taking into account the allowances for trade-throughs such as block trades, etc.) Last trade could be away from the current quote but the last trade is not the "market". This, of course, is during regular hours when there is a Consolidated Quotation Service. In the extended hours, there is no consolidation of the quotes and each ECN makes its own market. That is why you will see crossed bid/asks all the time in the extended sessions if you have consolidated quotes.