NYMEX CL Trade busts

Discussion in 'Financial Futures' started by erlewine, Jan 27, 2006.

  1. Pit CL routinely has trades busted at the high/low end of the range whenever an intraday high or low is taken out.

    Anyone know what standard procedure is for retail stop orders triggered by a print that is taken down?
  2. On my T&S I do see trades scratched as you say, but I assume those are "non-trades" - meaning fat finger mistakes rather than actual trades that get "busted" by the exchange. But I guess I don't know - those NY thieves do crazy stuff.

    So I am curious to know the answer to your question also. I'd be pretty PO'd to get triggered on a stop by a scratch trade. My floor broker is supposed to not do that.
  3. You could be right about non-trades, I didn't think about the fact these could just be erroneous reports to begin with, but I see this happen consistently every time stops are run at the intraday high or low.

    It's probably moot anyway - if I buy top tick on a stop, I'm sure the other side will make sure it's never scratched. Probably more of a concern if you happen to get lucky and catch top tick on a limit sell into some stop run and the floor got caught holding the bag.

    As far as floor brokers, I'd imagine if they see your stop price trade they have to go and chase the market, so I'm not sure how they could prevent my scenario from happening.
  4. What happens is someone trades a price that makes a high or low and after it is called in to the pit reporter some other broker notices that a limit order he is holding is violated. So then either he objects and gets the price taken out or else he has to execute his limit and adjust his customer to the limit price. What happens depends on how long it has been since the price went in, how many different orders are involved and if the traders who traded the violating price think the guy was sleeping and didn't announce his order or if they didn't here it or whatveer. If you r stop is elected and executed then your broker and the guy he traded with will have something to say about if the price stays in or not but if it doesn't deserve a fill then it won't be or shouldn't be even if you don't notice that or time has passed. But it will be incumbent on you to call the guy and tell him you aren't taking it if they change a high or low if they don't call you first. No matter what if they say you still have to take it then tell them to put the price back in the tape. If they bitch call the floor manager or if its a give up just dk it. You should tell them you consider them on the hook for it. CL is nothing you should have seen the way the guys would fight when this happened with s and ps limit downand people couldn't even exit their error positions and didn't know where it would open.