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

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

  1. traider

    traider

    did your original order ever get filled by the broker? I think you mentioned that it didn't
     
    #51     Nov 27, 2021
  2. thecoder

    thecoder

    It did not get filled yet. I expect it to get filled on Monday. FYI: this has a long DTE, meaning it moves slowly, even predictably due to the time value melting like ice in the sun when all other factors stay the same...
    But w/o that said error it surely would have been filled by now, b/c my Bid was higher all the time (a week long!).
     
    #52     Nov 27, 2021
  3. i think the option can only be listed in 0.1 increment. So your 0.35 will not show.
     
    #53     Nov 27, 2021
  4. thecoder

    thecoder

    Come on, that's BS! Why is it then now showing up? :)

    FYI:
    https://www.cboe.com/exchange_traded_stock/equity_options_spec/

    And the underlying in my case is a stock with spot < $1, as written in the initial posting(s) above, ie. https://www.elitetrader.com/et/thre...r-reporting-to-sec.363097/page-2#post-5495416
     
    Last edited: Nov 27, 2021
    #54     Nov 27, 2021
  5. Some stock options have 0.01, some have 0.05, other have 0.1 increment. If your order is not in that increment, it will not show up. It is equivalent to hidden in ib. Do not know if broker eats difference. When the bid ask is too large, I often submit order one cent better, which will not show up as active. It says the order is held and monitored. I guess either ib waits for internalization or something else. The exchange only take orders conforming to the quote rule
     
    #55     Nov 27, 2021
  6. ajacobson

    ajacobson

    Derived order issue - depending on which venue it was routed to. Chat with your broker. Some venues won't display if they have a size-up issue and you're smaller.
     
    #56     Nov 27, 2021
  7. bookish

    bookish

    Wouldnt it be nice if we lived in a country with a responsible government that regulated this?
     
    #57     Nov 27, 2021
    thecoder likes this.
  8. traider

    traider

    Can you elaborate more on this?
     
    #58     Nov 28, 2021
  9. It seems like an issue of more than just not displaying since it didn't fill either.

    I would also be intered to hear you elaborate on how the order might not show on the NBBO based on what exchange it goes to. The seems to run directly contrary to the definition of the term.
    https://www.investopedia.com/terms/n/nbbo.asp

    Hiding better orders from the NBBO whole filling others and holding the hidden order in reserve to backstop if the market moves the other way, seems like an easy way to rip off small fish and make no-risk trades.

    It amazes me how just because there is a rule, so many people on this forum assume it would never be broken. It's like nobody's ever head of libor, credit default swaps, rating agencies, etc.
     
    #59     Nov 28, 2021
    thecoder likes this.
  10. thecoder

    thecoder

    Another BS whitewashing attempt, IMO :)
     
    #60     Nov 28, 2021