Fraud: Broker kind of "frontruns" client order. Reporting to SEC?

Discussion in 'Retail Brokers' started by thecoder, Nov 26, 2021.

  1. thecoder

    thecoder

    The broker says "$0 commission" and at the same time a "fee of $0.65 per contract" :)
    Ie. effectively $0.65 per contract.

    Yeah, afterwards, after they have been caught-in-the-act, they can give any of these preformulated reasons... Never a "fault" of themselves, always a fault of others... The usual default excuse in such circles... :)

    BTW, an interesting read that explains PFOF (Payment For Order Flow) :
    https://public.com/learn/payment-for-order-flow-pfof-explained-and-why-it-matters

    But of course usually a more "authentic" info can be found at wikipedia:
    https://en.wikipedia.org/wiki/Payment_for_order_flow

    So, then it's an attempted fraud committed by the market maker.
    But then the control instance of the broker has failed as well. The question is: Why?
    Why does the broker not verify that the order landed correctly in the market?
    Testing this programmatically is IMO very well possible!...
     
    Last edited: Nov 27, 2021
    #41     Nov 27, 2021
  2. traider

    traider

    This will not be a surprise, it's not the first time nor the last time
    SEC Charges Direct Edge Exchanges With Failing to Properly Describe Order Types
    https://www.sec.gov/news/pressrelease/2015-2.html

    All hope is lost till the fair put arrives.
     
    #42     Nov 27, 2021
  3. MrMuppet

    MrMuppet

    I can't stop facepalming...really. The order is the brokers (not yours). The market maker has no influence on the order nor can he change the price.
    The broker is bound by best execution rules. If you post a volatility order, price will change with spot and vol.

    Attempted fraud of the market maker...made me chuckle.
    Not knowing the difference between commission and fees (exchange fees, clearing fees, et al) made me rofl

    All the tinfoil hats in this thread should really update themselves regarding current market structure. OP should read into his brokers 606 report.
     
    #43     Nov 27, 2021
    rb7 likes this.
  4. traider

    traider

    Best execution ... is there such a thing in modern markets?

    Rep. Brad Sherman accused Citadel CEO Ken Griffin of "wasting his time" during a Congressional hearing about January's GameStop stock trading frenzy on Thursday.

    Sherman, a Democrat from California, became heated and interrupted Griffin multiple times as he questioned the executive if Citadel gives better prices to certain brokerages, like Robinhood and Fidelity, to execute their trades.

    Griffin began answering the question by explaining the quality of Citadel's execution varies by how the order comes in and the size of the order received. Sherman said Griffin did not answer his question directly, and instead avoided answering by "making up other questions."

    "You are doing a great job of wasting my time," Sherman said. "If you're going to filibuster you should run for the Senate."
     
    #44     Nov 27, 2021
    engineering likes this.
  5. thecoder

    thecoder

    MrMuppet, what is your explanation of this scenario, ie. what do you think has happened and whom to blame for the error?
    Why did my Bid not land in the orderbook, and instead a lower Bid of someone else landed there? For more than a week long, then suddenly it got fixed after I complained to the broker.
    What is your explanation for this all?
     
    #45     Nov 27, 2021
  6. rb7

    rb7

    At last, someone who knows how the US option market works.
     
    #46     Nov 27, 2021
  7. thecoder

    thecoder

    IMO, fraudsters supporting/backing each other... :)
     
    #47     Nov 27, 2021
  8. rb7

    rb7

    Btw, did your .35 order for filled?
     
    #48     Nov 27, 2021
  9. thecoder

    thecoder

    What? Can you reformulate your Q?
     
    #49     Nov 27, 2021
  10. rb7

    rb7

    Sorry, 'got filled'?
     
    #50     Nov 27, 2021