you can generate your execution reports in the reporting section, for cash fx it shows the liquidity provider. Not sure whether you have to specifically request on the online reporting customization tool whether to include or not liquidity provider info.
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Interactive Brokers insisting on spiked Fx price
- Thread starter GRULSTMRNN
- Start date
you can generate your execution reports in the reporting section, for cash fx it shows the liquidity provider. Not sure whether you have to specifically request on the online reporting customization tool whether to include or not liquidity provider info.
Hey how was the investigation? Can you fill in on what happened? I also trade a FX spot quite frequently and hope to avoid something like this. Which bank filled you at the bad price?
Thank you. For me, it only says IDEALPRO in my statements. Where exactly in reporting section? ?I still can't find it.you can generate your execution reports in the reporting section, for cash fx it shows the liquidity provider. Not sure whether you have to specifically request on the online reporting customization tool whether to include or not liquidity provider info.
I asked my buddy just the other day, it apparently is still pending. I will definitely update this thread when I hear news.
Hey how was the investigation? Can you fill in on what happened? I also trade a FX spot quite frequently and hope to avoid something like this. Which bank filled you at the bad price?
I remember about year or 2 ago USDZAR spiked around 10% in a matter of seconds. Of course I was short. Luckily it went back in the next several minutes. I never had a thought to blame IB. Just don't trade ZAR anymoreThings like this are not supposed to happen with regulated brokers even in fx. Not even the most exotic fx pair moves around 2% in split seconds absent any market stress or economic releases before settling back at the exact price level prior to such price rigging 7 seconds later. Not even in the darkest hour of the past financial crisis.
My friend received an update from IB basically denying his claim for compensation. The core of their argument was that
"the execution price received is within the bid/ask at the time of execution and is therefore deemed a valid execution."
He decided and communicated to IB that he is taking it to the next level with a formal complaint with the local financial regulator. I actually believe he has a very good chance of receiving compensation and that IB will get another slap on its hands for messing up with its algorithms and its lax monitoring of the behaviors of its liquidity providers. They just recently had to pay a multi million dollar fine for a related case.
Ignoring some of the absolute newbies or simply naive who seem to believe brokers or execution providers can rig prices to any levels they desire and that is just the name of the game, a reasonable and experienced person in financial markets would most likely agree with my claim that saying that a price is fair because the "execution price received is within the bid/ask at the time of execution" is absolutely ludicrous. By that measure any broker can yank bid/offer prices together by multiple percent and then execute within that artificially inflated/deflated spread. That is one of the poorest excuses and arguments I have ever heard. By the same token, none of the FXCM or like bucket shops should have ever been fined for price rigging. Obviously regulators see this as manipulative and a violation of client trust in fair and equitable prices. This particular example is nothing else than price rigging, no fundamentals, no news, no prices on other platforms either reflected or explained this 7 second 2% spike. Hence, I am pretty positive my friend will succeed with his claim. But I think a fair assumption is that it will be a lengthier process.
I will keep this thread updated on news.
P.S.: I previously executed many hundreds of millions USD notional in rather non vanilla crosses through IB each month and since this incident routed most my non-majors to my other brokers. (I am one of IB's institutional client and saw the same price spike on the tape that I generally trade on). Perhaps newbies or those who execute a few thousands do not quite understand, but trust in your broker that you receive fair prices and that prices are more or less identical to broad market levels is an absolute essential. Without it, this business becomes a casino with a disaster in the waiting...IB, if you read this take a stance and especially MONITOR YOUR LIQUIDITY PROVIDER PRICE FEEDS, just because your price provider says its x does not mean its a correct price. In my book you can't excuse yourself from not knowing just because it was not you who set the price...
Updates coming forth as they trickle in...
"the execution price received is within the bid/ask at the time of execution and is therefore deemed a valid execution."
He decided and communicated to IB that he is taking it to the next level with a formal complaint with the local financial regulator. I actually believe he has a very good chance of receiving compensation and that IB will get another slap on its hands for messing up with its algorithms and its lax monitoring of the behaviors of its liquidity providers. They just recently had to pay a multi million dollar fine for a related case.
Ignoring some of the absolute newbies or simply naive who seem to believe brokers or execution providers can rig prices to any levels they desire and that is just the name of the game, a reasonable and experienced person in financial markets would most likely agree with my claim that saying that a price is fair because the "execution price received is within the bid/ask at the time of execution" is absolutely ludicrous. By that measure any broker can yank bid/offer prices together by multiple percent and then execute within that artificially inflated/deflated spread. That is one of the poorest excuses and arguments I have ever heard. By the same token, none of the FXCM or like bucket shops should have ever been fined for price rigging. Obviously regulators see this as manipulative and a violation of client trust in fair and equitable prices. This particular example is nothing else than price rigging, no fundamentals, no news, no prices on other platforms either reflected or explained this 7 second 2% spike. Hence, I am pretty positive my friend will succeed with his claim. But I think a fair assumption is that it will be a lengthier process.
I will keep this thread updated on news.
P.S.: I previously executed many hundreds of millions USD notional in rather non vanilla crosses through IB each month and since this incident routed most my non-majors to my other brokers. (I am one of IB's institutional client and saw the same price spike on the tape that I generally trade on). Perhaps newbies or those who execute a few thousands do not quite understand, but trust in your broker that you receive fair prices and that prices are more or less identical to broad market levels is an absolute essential. Without it, this business becomes a casino with a disaster in the waiting...IB, if you read this take a stance and especially MONITOR YOUR LIQUIDITY PROVIDER PRICE FEEDS, just because your price provider says its x does not mean its a correct price. In my book you can't excuse yourself from not knowing just because it was not you who set the price...
Updates coming forth as they trickle in...
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Sure, you have to choose what you have to choose. And I choose how to invest my time. I am heavily invested in IB and hence have a vested interest in this issue seeing the light of day. And I like to raise awareness that IB knows and understands that people are watching them very carefully. Plus I try to encourage others to come forth in the future when similar things happen to them. All in all, a worthy cause to invest a few minutes each week on keeping this thread updated. You may disagree of course but frankly I could not care less.
P.S.: I hope though that you do not take the same stance in life on other issues. Can't be bothered as long as you do not perceive a personal benefit? That is, for example, why a sizable percentage of the American population and the populations of many other western nations want to limit migrant inflows. Their societies were based and built on looking after each other and caring, things only changed when people from societies, where no-one gives a shit, entered and messed things up for the rest of the people.
P.S.: I hope though that you do not take the same stance in life on other issues. Can't be bothered as long as you do not perceive a personal benefit? That is, for example, why a sizable percentage of the American population and the populations of many other western nations want to limit migrant inflows. Their societies were based and built on looking after each other and caring, things only changed when people from societies, where no-one gives a shit, entered and messed things up for the rest of the people.
LOL I have to admit not following closely, from the initial post on, that this is all about someone else and not OP. I could think of better use of my time.
I raised awareness. The thread is searchable from any browser and anyone who trades serious size in spot fx will most likely raise his/her eyebrows over this. It is ok if you don't get it, but would you mind finding other threads that you attempt to hijack? This is for those who are invested in this space, you apparently do not make the cut.
Ok so in 7 weeks what have you so far accomplished?