Trade busts

Discussion in 'Trading' started by Cutten, Sep 19, 2008.

  1. Cutten


    I got some rather crazy fills (in my favour) - anyone intimately familiar with the rules for trade busts on AMEX-listed ETFs?
  2. amex will come back and bust the trades if they feel like it if you were filled by the specialist. they have no time limit they have to abide by. I have got screwed by the amex before like this so just letting you know. you may need to get your broker to call down to the amex floor to see if the trades are good if you are worried.
  3. Cutten


    It was short IAI (broker dealer index) around 47-50 (it traded to $400 lol).

    I'm ultra bearish & short today so I'll just hold it to the close or if I would have gone long in it anyway. If the bust it at least I don't have offsetting longs to get fucked on.
  4. Amex rules on 'busting' or adjusting trades:

    Main rule, established Dec 2003. The 'superceded' notice on the first link relates to options only. The rest of the rule remains in force.

    Attachment B:

    Attachment A:

    Options update, Jan 2005:
  5. Cutten


    Cheers. Printed off the fills and querying my broker now (they are rather busy lol).
  6. zdreg


    skf no quote?
  7. trom


    Anybody got a link to what Arca-listed stocks are being reviewed/busted?
  8. sprstpd


    Was it on an ECN?

    ISLD usually busts within an hour of the transaction.

    ARCA takes their sweet old time, you can usually rest easy by the time 11am rolls around. However, they have come back with busts at 2pm or even the next day. ARCA is totally ridiculous in terms of how it handles busts - totally unprofessional.
  9. Cutten


    It was island, yes. AMEX opening range was up to $36.16 ish, so will probably get busted. Spoke to nasdaq and they are reviewing the trades, said it make take 2-3 hours since obviously they're busy today.

    At least my ES sales are gonna stand lol.
  10. Cutten


    No surprise, they busted them.

    What is a surprise, and amazingly dumb (actually, that shouldn't really be a surprise after all) is that they are busting AN ENTIRE HOURS TRADING this morning on loads of stocks.

    The first couple of minutes could be "erroneous trades' (although they weren't - no one enters a market on open order by accident), but busting 60 minutes worth of trading is crazy.

    Also they use a 20% move from the close yesterday as the bust level - that treats IWM the same as some ultra-volatile security or ETF. The percentages should be beta-adjusted. Also, with such a wide time span, that means people trading 59 minutes after the open have bustout risk of being left with their closing leg turning into an open position.

    Real amateur hour at the nasdaq today.
    #10     Sep 19, 2008