Latest time a trade today can be busted?

Discussion in 'Trading' started by seasideheights, Mar 20, 2007.

  1. For a trade placed today (Wednesday 3/20), when is the latest (taken into account every possibility for a bust) that a trade can be busted? Would it be Friday at 4:00PM? Monday at 9:30AM? Any time at all if an error is found?
  2. who did you rob?
  3. sprstpd


    T+3, settlement date to be absolutely sure. On ECN fills, they have a time limit for the counterparty to file a bust request (say 1 hour).

  4. YOU! :D

    Seriously, I've always wondered about it & picked today to ask. I was curious how it worked with all the different trading venues & the semi-recent changes such as ARCA become NYSE-ARCA, Instinet merging with ISLD sucked up by NASDAQ, etc.
  5. So does that mean for a trade placed Wednesday, it couldn't be busted after 4PM Friday or 8PM Friday, or Monday? :confused:

    When there are half days of trading (1PM NYSE/NASDAQ/AMEX close) such as before some of the market holidays, that counts as a full settlement day, right?
  6. sprstpd


    Monday. Half-trading days count for settlement.

    T+3 is very conservative, it is just that a long time ago a few trades were busted on me 2 days late. So if you get an unbelievable fill and there is no reason to be worried about waiting to get out of the position, I would wait for T+3.

    If we are talking about a borderline trade, then you have to protect yourself and manage the position like normal.
  7. So, for a trade placed Wednesday, the first point at which it is definitivie that a trade won't be busted is 9:30AM Monday Morning? Or is it 8:00AM Monday Morning? or is it even Tuesday morning? :confused:
  8. sprstpd


    Anytime Monday.
  9. Thank You very much.

    My thinking with T+3 was always that you had to wait 3 full days after the trade. So a trade placed, let's say on a Wednesday wouldn't be fully thru the clearing process & truly yours until Tuesday Morning.

    It's only the day a trade is placed & the following 2 business days after a trade is placed that it can be busted?
  10. sprstpd


    The trade has to be settled by the 3rd business day. So you get filled on Wednesday and by Monday it has to be settled. Now you could make the argument that you have to allow the settling to happen on Monday so you have to wait until Tuesday to exit. However, I believe if the security is still in your account on Monday morning it means the trade was settled. I could be wrong on this but I remember looking into this in the past and concluding this is what actually happens.
    #10     Mar 22, 2007