Fraud: Broker kind of "frontruns" client order. Reporting to SEC?

traider said:
did your original order ever get filled by the broker? I think you mentioned that it didn't
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It did not get filled yet. I expect it to get filled on Monday. FYI: this has a long DTE, meaning it moves slowly, even predictably due to the time value melting like ice in the sun when all other factors stay the same...
But w/o that said error it surely would have been filled by now, b/c my Bid was higher all the time (a week long!).
 
thecoder said:
A client limit order to buy a Call option for $0.35 gets forwarded by the brokerage firm to the orderbook of the exchange as an order with a Bid of $0.30 instead of the $0.35. Every site shows the highest Bid as being $0.30.
Is this not highly criminal? Should this be reported to the SEC or an other watchdog?
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i think the option can only be listed in 0.1 increment. So your 0.35 will not show.
 
trend2009 said:
i think the option can only be listed in 0.1 increment. So your 0.35 will not show.
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Come on, that's BS! Why is it then now showing up? :)

FYI:
Premium Quotation
Stated in decimals. One point equals $100. Generally, minimum tick for options trading below $3 is $0.05 and for all other series, $0.10. For classes participating in the Penny Pilot Program, the minimum tick for options trading below $3 is $0.01 and $0.05 for options trading at $3 or above.
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https://www.cboe.com/exchange_traded_stock/equity_options_spec/

And the underlying in my case is a stock with spot < $1, as written in the initial posting(s) above, ie. https://www.elitetrader.com/et/thre...r-reporting-to-sec.363097/page-2#post-5495416
 
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thecoder said:
Come on, that's BS! Why is it then now showing up? :)

FYI:

https://www.cboe.com/exchange_traded_stock/equity_options_spec/

And the underlying in my case is a stock with spot < $1, as written in the initial posting(s) above, ie. https://www.elitetrader.com/et/thre...r-reporting-to-sec.363097/page-2#post-5495416
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Some stock options have 0.01, some have 0.05, other have 0.1 increment. If your order is not in that increment, it will not show up. It is equivalent to hidden in ib. Do not know if broker eats difference. When the bid ask is too large, I often submit order one cent better, which will not show up as active. It says the order is held and monitored. I guess either ib waits for internalization or something else. The exchange only take orders conforming to the quote rule
 
Derived order issue - depending on which venue it was routed to. Chat with your broker. Some venues won't display if they have a size-up issue and you're smaller.
 
ajacobson said:
Derived order issue - depending on which venue it was routed to. Chat with your broker. Some venues won't display if they have a size-up issue and you're smaller.
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It seems like an issue of more than just not displaying since it didn't fill either.

I would also be intered to hear you elaborate on how the order might not show on the NBBO based on what exchange it goes to. The seems to run directly contrary to the definition of the term.
https://www.investopedia.com/terms/n/nbbo.asp

Hiding better orders from the NBBO whole filling others and holding the hidden order in reserve to backstop if the market moves the other way, seems like an easy way to rip off small fish and make no-risk trades.

It amazes me how just because there is a rule, so many people on this forum assume it would never be broken. It's like nobody's ever head of libor, credit default swaps, rating agencies, etc.
 
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