CME Trade Bust

Discussion in 'Trading' started by Hurricane, Dec 26, 2008.

  1. This question gets asked on occassion but now I have a specific need to know. I sold an AUD futures contract on CME well above the cash market price shortly before 3pm today. I've waited for the call from my broker to advise that the trade has been busted. No call. I've also checked my position in the broker's system. Reported position includes the short contract.

    Can they still bust the trade on Monday or can I safely go car shopping this weekend (LOL)?
  2. Should be OK the cash hasn't traded since Xmas Eve. Aussie markets were shut today.

  3. why do you think it should be busted?
  4. jjftw


    I had some orders today to sell FXA Currencyshares Australian Dl total of 6 executions 100 shares each between 70.5 and 71.84, and I got a call and bust for 2 executions, and the other 4 stood, very weird. Sorry it doesn't really answer your question, just giving your thread an extra bump.
  5. The futures went up to over 74 cents in a minute and then reverted back to near 68 cents over the next 30 minutes. The cash rate and other currencies remained stable. I looked at the CME daily report this morning and for the AUD/USD March 2008 contract it shows settlement of .7198 and closing range of .6777.

    I had suspected that someone's automated program went hay wire. Either that or a very strange impact from someone closing their books for the year. In any case, looks like the trade will stand.
  6. mr888


    Yup, I seen that on the screen, came in 15minutes late though when the price was already back to 68, just looked like a big holder closed out their positions in thin trading.
  7. TraDaToR


    Search "trade bust policy" on the CME website.

    There is a range under/over fair value that is called the "no bust range" were no trades can be cancelled. Usually, all trade cancellation must be inquired in the first 8 min. Trade busts are usually done in the day or at least at the end of the day.