Here is the link to time and sales: http://www.cbot.com/cbot/pub/page/0,3181,317+2006Z+0,00.html 11/13/2006 ZG 06Dec 6256 5:38:45 AM 111/13/2006 ZG 06Dec 6160 5:38:48 AM 111/13/2006 ZG 06Dec 6163 5:38:48 AM 111/13/2006 ZG 06Dec 6164 5:38:48 AM 211/13/2006 ZG 06Dec 6159 5:38:48 AM 111/13/2006 ZG 06Dec 6159 5:38:48 AM 111/13/2006 ZG 06Dec 6248 5:38:48 AM 311/13/2006 ZG 06Dec 6225 5:38:48 AM 111/13/2006 ZG 06Dec 6220 5:38:48 AM 711/13/2006 ZG 06Dec 6243 5:38:48 AM 511/13/2006 ZG 06Dec 6231 5:38:48 AM 111/13/2006 ZG 06Dec 6251 5:38:48 AM 411/13/2006 ZG 06Dec 6231 5:38:48 AM One second the contract is at 625.60, then 616.00. I did not see any huge change in volume. Were there no buyers from $625 to $616? Strange. Here is the low print. This whole thing takes place in a minute, welcome to the electronic age. 11/13/2006 ZG 06Dec 6053 5:38:53 AM 111/13/2006 ZG 06Dec 6064 5:38:53 AM 111/13/2006 ZG 06Dec 6063 5:38:53 AM 211/13/2006 ZG 06Dec 6040 5:38:53 AM Again no unusually high volume, nothing over 50 contracts. Maybe someone can post a chart of the gap that got filled.
If i see no bid at all for 10 bucks, i would offer 2 contracts 10 bucks lower and search for STOPS. I know i can cover on those stops. The guy who did it might have waited for 2-3 months every night watching every bid 10 hours a night for the market to have no bid at all. More power to him!
The function of an exchange was to provide fair and orderly markets to all participants. The exchanges were set up with an open outcry system and the ability to have checks and balances so small parties previously farmers in the commodity markets were treated fairly. As markets have expanded to different products and means of transaction is the responsibility of the exchange to continue providing a fair market even with the advent of electronic trading. It is their responsibility to not allow price manipulation. We have all been failed by the actions of the CBOT. If a billion dollar market can be moved 3% on a few hundred contracts our trading and the stability of our markets are at risk.
gee.... the boys at the COMEX never had a problem gunning sell stops... and they operate on a "not held" basis for crappy fills..... if you look at CBOT's live book during AH, it's not hard to see that a limit order that was mistakenly entered as a market order for a 50 lot would crater the bid side.....
I have now received a few emails via my EliteTrader forum account. Some very concerned and angry reactions to that spike. The sharpest critics for CBOT however is not from the beginners and amateurs, who are more desperate and disappointed than angry. The ones who are really upset are trading veterans and very experienced full time traders. Let me quote one here : "During my 23 years of watching the markets on a daily basis I can recall no greater screwing than the action of the CBOT to not break some trades." I can only emphasize everyone who has been affected - don´t sit their and let just pass this by. Take action, call the CFTC and complain, as others have already done. Call your broker with your demand for an adjustment request to be made to the CBOT (by the broker on behalf of you) - thus you will create a valid record with the broker â and insist if your broker tries to avoid some extra work by convincing you it would be in vane. It is late if you haven´t done this yet, but still it will be useful as evidence of your disagreement with the executions if there should be a class action suit filed. You can also call the CBOT market supervision department (312) 347 4600 and express your concerns. Don´t let them get away with this too easy ! Any single call will have some kind of effect ! And even if your losses would in the end not be adjusted, but your action will help to make the CBOT not allow for this again.
Isn't the problem with breaking trades that it discourages traders from providing liquidity when it's most needed?
Yeah man! If all these trades are broken, next time a real bomb is dropped, you wont get your fill at 604.0. It could be 60.40
The Comex contract didn't budge. That would have been a great spread trade. I wonder if it's worth hiring a dude to watch this overnight? Seems like ZG is still plenty flaky.
e-miNY, your post sounds like a threat - are you and Illiquid the providers of the overnight liquidity in ZG. are you guys the responsible MMs to chase down on this ? What is your idea of an overnight market ? A nice opportunity to profit from errors and manipulations causing spikes ? I hope you have other means of making money beyond that, because this one might dry out. Sorry, if I am disturbing this nice little rip-off scheme. But you smarties should read my post in response to Blind Hog on the TFC Commodity Trading Forum, since you sound very similar : ----clip start----- Blind Hog, even I can see that all of your proposals are purposely useless, it took some hard thinking though. Are you afraid of trades being busted, especially the ones YOU "legitimately" entered into ? But you see, the exchanges are not just a video game replacement alike some online poker for personal pleasure and entertainment. The exchanges do actually have a function in the economy, but you may want to read about that somewhere else. In the end it is a public requirement that these markets provided by the exchanges follow some rules and regulations in order to assure a fair market for the majority of participants, not only a nice playing field for a minority of a few active gamers and stop fishers. And while you think it can´t be achieved it is already reality at some other places. Whether you like it or not - bust trade rules are a good start. I do follow Gunter K with his concerns about potential other problems created by canceling trades, yes such rules must be implemented and enforced with great care. But would you rather not use the brakes of your car because it could cause you to flip over if not used carefully ? Would you rather not brake and run into a wall in order to avoid someone hitting you from behind ? And since these brakes can cause all these problems, would you propose to build cars without brakes - the public traffic would become a much more interesting sporting arena after all, right ? But read the CBOT's "Revised Error Trade Policy and Dynamic Price Limits" : http://www.cbot.com/cbot/pub/page/0,3181,1174,00.html. Unfortunately the CBOT failed to use these policies more adequately on Nov.13th. And that is what I am suggesting to challenge. Has the exchange used sufficient care to implement countermeasures against errors and manipulation and has the exchange responded adequately upon the spike of Nov.13th. ? My answer is NO ! They have to stand in for that and correct the situation. So Blind Hog, could you not think of anything else beyond the points on your little list? Well let me come up with some mind-blowing brand new revolutionary ideas like MM agreements, that do not allow a market to leave a certain distance threshold to fair market value during thin overnight sessions and on public holidays for just a mere 200 or so contracts traded. And then combine this with simply enforcing the rules and MM agreements that are already in place ? Or would you think that all this far to complex to do, especially in light of the state of current computer technology and these milliseconds e-markets ? Look up, it was never easier than today to get these things sorted out ! But all of this will certainly not find your consent if you simply cannot stand the idea of a fair market environment. ----clip end-----