Currenex fill reversed by clearing

Discussion in 'Forex Brokers' started by Cybren, Apr 19, 2008.

  1. Cybren


    Hi there,

    Yesterday we did a trade with our algo which was off market (130 pips, but at a price that was trading that day, say 2 hours before). We got the fill confirmation etc. I have no clue if any mistrade rules apply on FX trades and if gentleman's agreements are in place so if anybody has experience on this I would love to hear. We get the feeling it's abit of a one way street where if we trade on a very bad off market price it's our own problem and any liquidity provider can bail out whenever they want. This time it was Citibank screwing up.

    A shame because it was an instant 6400 USD win.....but the point is we want to know when we can be sure a fill will be honoured. Now we hedged and lose on this trade which seems a bit odd.

    Anyone experienced similar things on Currenex/Hotspot/Lava or FXAll?
  2. Hi,

    As i understand it, if you use mkt orders you can get an off-mkt fill, as its the next available price.

    What pair were you trading?

    PM with the broker, or name it here, i am curious.

    My thoughts are, if you took a $6400 loss, you would be stuck with the loss. But not the other way 'round.

  3. Dont you have a 'Off market transactions policy' in your agreement? It usually states that the client has to report such a transaction within ~15 minutes, and that the broker will review the transaction and make a ruling 'on his sole discretion' in a 'timely manner'. I guess the question is, is the client important enough to piss off the bank?

    The only broker i know that has a clear off-market transaction policy applicable to both clients and banks is FX Marketspace (all transactions outside price bands of +-20 pips - something like that atleast - of the BBO will get undone, all other deals will stand).

    Also it seems to me that his happens alot on currenex (at some brokers more often than others), but i have never heard this about hotspot (nor was i ever filled off market with them). May be coincidence tho.
  4. ccooper


    This happened to me a few times last year on Currenex, and it was invariably expensive. To the credit of the broker, they typically informed me by phone within 15 minutes of the "out trade". It also happened, once at the same time, on EFX Group. There I was only informed hours after the event, and the market had moved away. I had to reach a settlement with them, because it was their fault that they didn't inform me of the out trade in a timely manner.

    As far as I can determine, the usual result is that the trader gets screwed.
  5. Cybren


    Yeah, seems we have no real saying in what happens. But worst thing is that we traded late on friday and get a price adaption after the close, so markets are closed.

    Must say that it is still beyond my belief what we experience in FX markets (we trade all kinds of markets, equity, bonds, derivatives). The banks are always covered and can do whatever they want and bail out of trades whenvever they like.

    No way a level playing field. We also experience what we have read is named 'last look' where a price we see and want to hit is still canaceled, even though we are 100% sure price was still published the milliesec our order came into the book.

    Anyway, probably we adapt and go on....not much else you can do, only set prefered order routing to Hotspot.
  6. Was your $6400 win as a result of trading around economic figures?
  7. Cybren


    No, was not around figures......
  8. stptrader

    stptrader you mind me asking...what kind of size are you trying to do when you experience last look?