Hey guys I've been trading for a few years now. I recently started having fun programming different trading keys on my front end. I created a massive bid/offer key with multiple ECNs just so can increase my chances of getting filled on bid/offer in low priced high volume stocks. I was inside hidden offer and hit my mega ECN key and got filled on 300 shares. Messing around like this is totally stupid I realize this. Mind you it was a 2 cent spread. I literally saved myself 3 bucks. Later in the day I received an email from my brokerage firm accusing me of quote layers and asking me to explain myself. I realize it's stupid to show size--- but I was just playing around with a new key that I had created, never in a million years would I expect this to happen. This is my first post, but being a lone wolf I don't really have any trading buddies or resources to talk to. How would you recommend I deal with this situation? Should I call an attorney? Any and all advice would be appreciated.
Be upfront and send in an email explaining what happen/ what you were doing... You may receive an email back say donât do that againâ¦, or nothingâ¦. That should be the end of it I received and inquiry last year â emailed in an explanation and never heard anything more of it⦠RN
Send the explanation you wrote and you will be fine, no lawyers required. You only did what some HFT algos do 100 000 times a day. Can only imagine how many letters they must be generating. Good luck.
http://blogs.reuters.com/felix-salmon/2010/09/14/trillium-wasnt-quote-stuffing/ Worse case, it will not be more than a $ 2 million fine that Trillium paid for layering. You should be able to make that up with a few good days of profit.
was probably a dick hft firm trader and you beat him out of stealing,good for you, tell him to go jump in the lake
I agree with the others; you're explanation should be fine. I don't see what better reason you can give other than it was basically a mistake.
the computer limits your size to your acct, if you weren't over margin and your an individual with a smaller acct than any funds, i doubt your trade will hit the radar
Just send a Xmas gift to your brokerage..things are gonna be just fine. In Dec, any matter can be solved by sending Xmas gifts.