Today i got screwed on a bad tick on nyse and broker said tough crap

Discussion in 'Order Execution' started by jnorty, Oct 19, 2010.

  1. jnorty

    jnorty

    Today i threw out 3 mkt orders on edga on the nyse and got fills $1 under mkt which was a bad tick fill. I lost 1k almost. I called complaining and they said sorry nothing we can do as it must be 5% away from the price to contest.Is this true that there was no way i could fight this bad tick. The bid- ask was always $1 higher and never near the price i got filled at.
     
  2. The rules require a broker to 'try' and get the best prevailing price (NBBO) but the regulators do not enforce it. I have never heard of a 5% bad tick on an active stock. There is a 5% allowed on markups/markdowns if the broker is acting as a dealer but he has to meet certain conditions (illiquidity, etc..) to charge that percentage of markup/markdown. Are you sure you got the trade executed on the NYSE? I would guess your order was internalized. Ask where the order was transacted and who the contra party was to the transaction. They have to provide this information. Get a print of the tape showing time of sales and prices from the broker. Ask the broker who his SRO is and file your complaint with them as a starter with a copy to the SEC.
     
  3. What broker was this?
     
  4. bstay

    bstay

    what stock or symbol did you trade?
     
  5. Your brokerage account agreement (or perhaps your broker's website) ought to have some text describing how disputes get resolved, and hopefully also give you some idea of what their obligations were in respect of this fill.

    Sometimes the dispute resolution mechanism allows for mediation by a neutral third party (I think its NASD or similar in case of stocks, other bodies in case of futures, options and forex).

    If you decide that you have good cause for a claim, find out about the mediation process, and start documenting your claim.

    Get the names of the individuals at the brokerage who dealt with you in this instance.

    As soon as the brokerage sees that you intend to cause them trouble in this way, they'll probably cave in ... particularly if you are the sort of trader who pays them more than $1000 commissions every few months!

    Good luck.
     
  6. post the time, price, and symbol for this trade and i'll post the contra for you if you're interested.
     
  7. jnorty

    jnorty

    sorry guys. i'd rather not say who the broker is but its a big firm that deals with day traders mostly.The stock was gs yesterday. They told me that they are not allowed to contest a trade unless it falls within the 5% band. I argued and they wouldn't budge saying they could file a grievance but they would not break the trade.I've probably spent $2 mil in commissions the last 4 years.Never had a problem before. Next time i'll throw limits under the mkt
     
  8. trom

    trom

    1. If you routed to EDGA, NYSE wasn't involved.

    2. What specific EDGA order did you send?

    3. Did you get numerous partial fills? Only the top of the order book is protected. EDGA fills against its own book, then routes out to other ECNs at the NBBO. If there is not enough size to fill the rest of your order, EDGA can then match against its own liquidity farther away from the market. Don't send large market orders to illiquid market centers.

    I don't know if this is what happened in your case, but it is one possible explanation.
     
  9. Only 2 mil, they probably dont even notice you're there. Not eligible for any adjustments till 20 mil/year is reached, the average for ET users according to the last survey.
     
  10. Since you're such a dumbfuck using market orders, you learned from the school of hard knocks. Please, stop using market orders. Live and learn. Don't be a tool.
     
    #10     Oct 25, 2010