Can anyone explain this broker response?

Quote from trader29:
The broker probably had another call waiting while he was on the phone with your friend. After the broker heard the order he probably picked up the other line instead of immediately entering the trade. While this is going on SPY moved higher and your friends order was only entered after the broker finished his conversation with the person on hold.
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Are you a broker?
 
Quote from slapshot:

4) the broker gets paid the usual commission plus gets paid on the .35 spread between his trading desk fill and what he can get away with charging Grandpa without pissing him off too much
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It is not easy to do this without internal compliance seeing an omnibus or trading account position trading in front of a customer order.

There is a paper trail with account numbers on it.

The trading desk is NOT touching a 500 share order, it is executed electronically on DOT, the order was delayed...PERIOD...and the broker lied about the delay.

NASDAQ in 2000 this was protocol, this is 2008 and not NASDAQ trading.

Please stop making shit up!
 
Quote from Rearden Metal:

Oh, I already assumed that part!

Here's what I think might have happened:
Customer calls shady broker at 10:00 AM with an order to buy XYZ at market. Shady broker easily fills the order immediately at $100, and waits to see what the market does in the next few minutes.

If by 10:06, XYZ is trading around the same price ($100) or lower, the original prompt fill is assigned to the customer, and that's the end of the story.

If by 10:06, XYZ is trading all the way up at $102, Shady broker keeps the original prompt fill for himself (or his proxy, to make the scam's paper trail harder to detect) and sells it to the customer six minutes late at $102, pocketing the $2 difference as a risk-free arb. This is illegal, of course, and the broker has to have very little respect for his customer/victim's mental capacities to try and pull a douchebag stunt of that kind.
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I bet this is what happened. In six minutes you could have traded by smoke signals. And that lame excuse is the tell; what a line of BS, what the hell does it even mean? They pocketed the risk free cash!! Heads I win, tails you lose :mad:
 
This is total bs. Sounds to me like a crook trying to swindle an elderly investor of $500. I'd bitch and complain non stop about it if this happened to me.
 
Quote from Surdo:

It is not easy to do this without internal compliance seeing an omnibus or trading account position trading in front of a customer order.

There is a paper trail with account numbers on it.

The trading desk is NOT touching a 500 share order, it is executed electronically on DOT, the order was delayed...PERIOD...and the broker lied about the delay.

NASDAQ in 2000 this was protocol, this is 2008 and not NASDAQ trading.

Please stop making shit up!
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This is not made up by me, this is how some full service brokers used to hose their clients on listed stocks. There are a number of expose' books available on the subject from former stockbrokers.

Besides, I was being more hypothetical than anything.
 
Quote from Surdo:

It is not easy to do this without internal compliance seeing an omnibus or trading account position trading in front of a customer order.

There is a paper trail with account numbers on it.

The trading desk is NOT touching a 500 share order, it is executed electronically on DOT, the order was delayed...PERIOD...and the broker lied about the delay.

NASDAQ in 2000 this was protocol, this is 2008 and not NASDAQ trading.

Please stop making shit up!
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Agreed 100%.

I'm so tired of hearing all of these "conspiracy" theories by a bunch of college kids on ET who really have no clue.

The broker is not "front-running" a measly 500 share SPY order. That would be absolutely absurd, not too mention highly ILLEGAL given the kind of paper-trail that exists out there.

This was an AGENCY trade, pure and simple!
 
I actually visited a friend who worked at a full-service brokerage and that is how it worked. The client would call, he would write up the trade, walk it over to the person in the office, drop it off in their 'inbox' and walk away. Then later in the day or the next day, they would get a slip of paper with the fill for that trade.

Sounds crazy but that's how they did it. And this was a reputable full service firm.

Having said that, that only explains a delay in getting a fill, it doesn't at all explain the lame excuse given by the broker. Build a basket? what? did he go off into the park behind his office to weave it? Sheesh.
 
Quote from Rearden Metal:



The broker is probably either ignorant or lying.
Anyone see a third possibility here? Because I don't.
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3rd option:
lying dumbfuck?
 
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