Anyone know if NYMEX floor brokers are liable for limit order trade-throughs in CL options (assuming normal market conditions)? Also how does this happen - assuming there is no transmission problem (order getting to floor clerk), doesn't your order go into some sort of book in the pit if it's not marketable when the floor broker receives it? Anxiously looking forward to the day these things go to the screen.
I don't know what the 'rule' states, but if your limit is traded through a local will take your broker out of his error. Your order is the responsibility of your broker and his clerk(s); there is no system in place for non-marketable orders.
I find it hard to believe the floor brokers can't put their orders in some sort of public book or board. Take a busy floor broker with lots of retail orders spread all over various strikes & months - how in the world can they make the crowd aware of them in a timely fashion? i.e. Joe Schmo sends in an order to sell some option at 30 cents in the AM, market is 15-20, nobody cares. That afternoon the underlying moves up, theoretical value of the option is now 40 cents but no paper is coming into the pit so no trades are going off. How are the locals aware Joe is still offering @ 30 pennies?