IB: To all traders Tue Feb 4 16:45:53 2003 EST Globex Trading Update Globex has just notified us they are breaking all trades in ESH3 executing above 860.00 between 16:00 and 16:15 EST. ====================================================
I disagree. But since all the "electronic exchange" casinos seem to be operating like this, I suppose I am in the minority. If I buy 2000 shares instead of 200, do you think anyone breaks my trade? Fair would be to have clients check their orders before they send them to the exchange, and if they fail, it should be their own loss. They could buy "moron clerk insurance" for scenarios like that. It should not be the exchanges' concern.
Seems that there should be some FAIL SAFE code in the Globex programs to avoid those types of moves ??? Guess that's a Logical thought - therefore that's exactly "Why" it ISN'T in place.
I agree with Lobster. Busting the trades is BS IMO. For all we know, it wasn't accidental, the "originator" might have thought he had some inside news on Saddam being killed or something. Who says the trades were entered in error?
I find that reasoning logical, too. I suggested it on here in the case of ISLD. The point is if you are going to bust trades based solely upon price action, it is your responsibility to do everything you can (like add some 20 bytes of code to the matching algorithm) to prevent these trades from printing in the first place.
This same thing happened on Eurex not too long ago. You would think they would learn from others mistakes.