Curse of the renegade trade

Discussion in 'Order Execution' started by albi, Aug 23, 2006.

  1. albi


    Dear trader friends,

    One day in July, I was trading ES when my Pats connection went down and my charts started flatlining. Called my broker who suggested I exit the trade from the desk. It was done, the connection was restored and I was set to go. Later, after the trading day was over I got a call from the broker asking me if I was aware I had an open position. I exited the next morning with a loss of 10 points. After reviewing the trade records, they said I had had a "confirmed cancelled order" filled by the CME and were going to investigate.
    After that day, I kept writing them and they would send me all sorts of excuses like it was ultimately my responsibility etc. They also said this happens in the world of trading and you just have to bite the bullet and the CME very rarely admits mistakes.
    This must happen all the time to small traders. They wear you down until you give up.Is this the nature of the beast or is there some recourse?
    If anyone out there has some good advice, I'd be grateful.
    Also, I need a new futures broker with benevolent customer service and flawless trading platform.
    Thanks in advance.
  2. alanm


    In trading, a "confirmed cancel" is generally considered to be stronger than any other type of order status, even a fill. If they gave you an out, and refuse to honor it, don't let them get away with it. File a complaint with CFTC if you have to.
  3. albi


    Thanks Alanm,

    I appreciate the advice and will continue to press the issue.
  4. KS96


    Who is your broker?
  5. I've traded 20 years. In these situations, everyone stands around and points fingers at each other. All other parties are aware that this is, in fact, useful. The individual trader will have to absorb the loss in this scenario. You can rest assured the other parties are aware of this dynamic.

    Wearing you down is definitely a strategy in almost every clearing house. Complain directly to your regulator. And let your clearing firm know that you will be taking this course of action. If the trade is big enough, hire a lawyer. If it's an ongoing situation, many lawyers will take it on contingency.
  6. albi


    By regulator, do you mean the CFTC?