CANCEL FEES: Letter to SEC

[ktm]

It's all about how the exchanges (and the gov't for that matter) want you, the paying consumer, to behave. With more fees, there is disincentive to do something. With tax credits or deductions, there is incentive to participate in those things eg., home ownership etc... Change the incentives to create the desired behavior.

The exchanges may run all the little guys out. I don't think that serves them. They are in business to make money like everyone else, so we'll see how it all plays out. They could be hanging themselves.

 

[qdz3]

But it is absolutely ILLEGAL for brokers not to provide itemized billing information. Lawyers and consumer activists are happy to make easy money on this. For me, I don't really care, whether they provide it or not since I am not gonna let them charge (or hence credit) me at all. I am getting out of this kind of shitty market. But it would be happy to see happy lawyers take a huge chunk off their a88hole profits. a88holes and elbows continuing in the shitty market, keep your receipts and you may be getting a refund in the near future.

Quote from gerico:



I'm not accusing anyone. I've not made any legal fight.
I'm only just asking to the SEC to KNOW IF these fees are legal or not.
Maybe these fees are legal in the SEC judgement. Then OK. I will SHUT UP.

 

[gerico]

Quote from ktm:

It's all about how the exchanges (and the gov't for that matter) want you, the paying consumer, to behave. With more fees, there is disincentive to do something. With tax credits or deductions, there is incentive to participate in those things eg., home ownership etc... Change the incentives to create the desired behavior.

The exchanges may run all the little guys out. I don't think that serves them. They are in business to make money like everyone else, so we'll see how it all plays out. They could be hanging themselves.

ktm, you're right, I know all that.
Anyway if they don't want us trading anymore, maybe there are other ways than imposing cancel/modification fees...

 

[gerico]

QDZ,
as I've said before, we're not making ANY accusation to anyone, nor legal fight. We're just reporting what is happening.
Considering this, we must keep our language polite.
Eventually even the tone of the SEC letter should be softened, maintaining the subject clear.

Quote from qdz3:

But it is absolutely ILLEGAL for brokers not to provide itemized billing information. Lawyers and consumer activists are happy to make easy money on this. For me, I don't really care, whether they provide it or not since I am not gonna let them charge (or hence credit) me at all. I am getting out of this kind of shitty market. But it would be happy to see happy lawyers take a huge chunk off their a88hole profits. a88holes and elbows continuing in the shitty market, keep your receipts and you may be getting a refund in the near future.

 

[gerico]

It seems that complaints about commissions and fees are ranked FIRST on the SEC site:

http://www.sec.gov/news/data.htm

See also:
http://www.sec.gov/complaint.shtml
http://www.sec.gov/complaint.shtml

Moreover the email address that we used in the letter is exactly what was indicated:

Welcome to the SEC Complaint Center. The Division of Enforcement and the Office of Investor Education and Assistance created the SEC Complaint Center to make sure that the concerns and problems of individual investors are known throughout the SEC and considered when we take action. We welcome hearing from you because your complaint may be the one that alerts us to a bad broker or firm, an unfair practice in the securities industry that needs to be changed, or the latest Internet fraud.
How Do I File a Complaint?
There are several ways to file a complaint:
You can file a complaint right now, by using one of our online complaint forms.
 
You can print out a form or write us a letter and mail or fax it to us. Our address is:
 
SEC Complaint Center
450 Fifth Street, NW
Washington, D.C. 20549-0213
Fax: 202-942-9634
 
You can forward spam (junk email) or copies of message board postings to enforcement@sec.gov. Please do not use this email box for general complaints or questions.

Moreover:

What Happens After I File a Complaint
We thoroughly review and evaluate each complaint so that we may refer it to the appropriate SEC office. The Office of Investor Education and Assistance will handle certain general questions about the securities laws and complaints relating to financial professionals or a complainant's personal financial matters. The professionals in this office can counsel you regarding possible remedies and may, under appropriate circumstances, approach brokerage firms, advisers or other financial professional concerning matters you have raised.
Attorneys in the Division of Enforcement evaluate complaints implicating violations of the federal securities laws. It is the general policy of the SEC to conduct its investigations on a confidential basis to preserve the integrity of its investigative process as well as to protect persons against whom unfounded charges may be made or where the SEC determines that enforcement action is not necessary or appropriate.
Subject to the provisions of the Freedom of Information Act, the SEC cannot disclose the existence or non-existence of an investigation and any information gathered unless made a matter of public record in proceedings brought before the SEC or in the courts. You can find information about public enforcement actions on our Web site.

 

[iceman1]

and the SEC have made an error in allowing these fees on ANY cancel. At minimum they should have at least set some time frame on charging fees. In other words if one cancels an order (or modifies) at 9:45 and another later in the day at 2:00... why should that incur any fees??! Why! The stated reason for this b.s. was that too many were/are abusing the system with frequent/multiple cancel/modifies (yet we all know that is not the true reason)!

And is "abusing" then... trying to get a better price?????

ADD that to the letter you send.

Basically this is "legalized blackmail" and all thanks to the do-nothing, mainly corrupt SEC! They know it and any options trader should know it... and SHOULD write to the SEC and the exchanges!

And remember guys, you can cancel ANY number of trades on the underlying with impunity!! Meaning: NO FEE.

WHY is that, SEC?


Ice

 

[qdz3]

Please speak with them as I did. Thank you.



From:"marketreg" <marketreg@SEC.GOV>
To:"'qdz'"
Subject: RE: Order cancellation/modification fees
Date: Mon, 7 Apr 2003 16:06:01 -0400

Dear Sir or Madam:

The Division of Market Regulation, U.S. Securities and Exchange Commission,
has received your Internet e-mail message. We would be pleased to speak
with you. We ask that you provide us with your telephone number and approximate hours of availability so that we may better serve you. You may also reach us at 202/942-0069.


Sincerely,

Division of Market Regulation

 

[gerico]

I've received this message from the SEC, too, and have already replied. Let's see what they say.

Quote from qdz3:

Please speak with them as I did. Thank you.



From:"marketreg" <marketreg@SEC.GOV>
To:"'qdz'"
Subject: RE: Order cancellation/modification fees
Date: Mon, 7 Apr 2003 16:06:01 -0400

Dear Sir or Madam:

The Division of Market Regulation, U.S. Securities and Exchange Commission,
has received your Internet e-mail message. We would be pleased to speak
with you. We ask that you provide us with your telephone number and approximate hours of availability so that we may better serve you. You may also reach us at 202/942-0069.


Sincerely,

Division of Market Regulation

 

[qdz3]

The lady I spoke with said they are in the process to launch a formal investigation against both legamacy of the fees and the billing process . They need more witnesses.

Quote from gerico:

I've received this message from the SEC, too, and have already replied. Let's see what they say.

 

[qdz3]

Patriots don't let any criminal work away.