What's appalling is that they charged me extra commissions to reverse the trades. If it was the exchange that's f'ed up like what @rb7 said, then I shouldn't have to pay for anything when IB tried to remedy their f'ups. In my case, they didn't even call me. They just gave me a notification in TWS that my trade is suspected as an erroneous trade and they are going to investigate. And then they gave me a second notice that stated to me that upon their investigation, they deemed the executions of my trades were erroneous trades and then upon the close of business, they reversed the trades and charged me extra commissions for the reversing trades. Ok I am going to contact them. At the least I shouldn't be paying for their action of correcting their mistake.
The reason that they gave for the bust was quite strange. It was because the order was cancelled. For the entire time, my order was never canceled on my part nor on IB's part; it had always been outstanding to be filled during and outside of trading hours and then it was actually filled during the trading hours at 9:45 AM. And they didn't inform me or "correct" the trade right away, they waited until the end of the day to send me a notice regarding the bust and the reversal of the trades and the reversal of the trades took place at 4:15 PM at my expense. I did nothing wrong and they screwed up and then ask me to pay for their mistake. This is what I find hard to accept. I mean I would feel a bit better if they just took the profit away from my account instead of doing the stupid reversal. At least that way, I wouldn't incur additional commission especially when it wasn't my fault.
If you still feel you were treated inappropriately file a formal written grievance with FINRA, and the trading ops area of the exchange where your trade was executed. It can be done by email.
Learned a lot about how order executions. Created a ticket now in IB's system about this to see what they say. And then I will take it up with FINRA if necessary. Thanks everyone for your info. and advice. Much appreciated.
Assuming you talk about US options. Note that an option cannot trade "outside of trading hours" (so you can also not specify that). Also strange that in the opening post you say execution at 10:30 and in more recent post you say 9:45...
Oh sorry that was a mistake. That explains why I received an email response asking me about 10:30 AM. I was composing an email to schedule something at 9:45 AM and wrote that here by mistake. And my trade did get executed at 10:30 AM. And US index options can get executed outside of regular hours. I do that all the time.
EXACTLY my point. My order was executed with a bona fide execution. I have the audit trail to prove it. I have sent the ticket to IB message centre to inquire about this. And so far, there is no response. Yeah have a bad feeling that the exchange (if IB was indeed doing this on behalf of the exchange) was just trying to weasel out of this one and not wanting to pay up because the price was highly in my favour. If I still don't get a response, I may have to take up with FINRA like @ETJ suggested.