NYSE Trading -- Is this legal?

Discussion in 'Trading' started by cornholetrading, Sep 12, 2002.

  1. I am a newer NY trader so I don't know how often this happens, but I can't see how it can be legal. So can I please get some comments on this from some NY traders. How often does this happen, is it legal, what can be done about it, or was it just a "fluke" trade and part of the territory?

    Today I was trading GE. I was short right in the morning and had a bid placed out there at 28.42 to get filled to cover the short. The specialist moved his quote to 28.39/28.41. He printed a ton of shares at 28.40 and some more at 28.39 which was the low of the day. However I did not get the fill. Before moving his quote down he was at 28.46/28.50. I had my bid out there maybe 30 seconds before he moved his quote down.
  2. Dustin


    I don't know if it's illegal or not, but that has happened to me plenty of times...especially when the stock is in a "fast market".
  3. cashonly

    cashonly Bright Trading, LLC

    He has up to 2 minutes to fill you after your order goes in.

    Now what we need (as Paul Harvey says) is the rest of the story. After those prints, what did he do and what did you do. More than 90 seconds later, did he print below your bid? Did you cancel you order and how soon after?
  4. MVP


    your order.

    Specialists hate small size traders that are a hassle to their business. Especially now that the markets are slower, they have more likelihood of screwing the trader.

    Its part of doing business with the NYSE. Like it or not.
  5. the answer:
    Stock ahead. Sorry.
  6. I'm not sure about the problem. If you were short and the bid was dropping, that is a good thing for you. When you put in your order, I am presuming it was a limit order to buy at yur bid. The limit order is a buy at the price or better. In your case it would appear that he was giving you an "or better".

    Just to be sure, you were short, and wanted to cover right?
  7. Also, call Stockwatch at the NYSE. They will look into it. And your online broker will check the trade for you also.

    Plus I don't think stock ahead supercedes a higher bid.
  8. Bryan Roberts

    Bryan Roberts Guest

    get real....this happens all the time, everyday on the nyse...just the way they do business....try using direct plus.

  9. My limit order was out like 30 seconds before he moved his quote down from 28.46/28.50. My bid out there at 42 to get out of the short. He first moved his bid down to 40 and printed a bunch. Then he moved his quote to 28.40/28.42. Then he moved it to 28.39/28.41 and printed at 28.39. After that he moved his quote back up to 28.46/28.50. I never canceled my order but put a bid out up higher at this point at 28.47 to get out of the trade.

    I am trying to find out if this is legal and if I should have called or not. Can't figure out how I can have a bid out there and he moves his whole quote below mine and prints like mad and not get filled. I can understand if he widens his spread out and not getting filled but that is a different story. NY is new to me so I am just trying to figure out the game and wanted to see how much or often this BS goes on.
  10. I am trying to keep it real. This is what I wanted to find out, how often this happens. I have traded NYSE a couple of months and it has not happened to me like this before. I have had missed fills I thought I should have had, but know that is part of the game. Never anything this blantantly bad. I have direct plus, but as I understand it, it is for hitting bid and offers, not putting in bids out of the money.
    #10     Sep 12, 2002