NYSE Questions - Perhaps Don could tackle these

D

dc441711

1) If a position is held overnight with a stop put in, is there a way that your firm (prop firm) can "wipe out" the stop after the market closes? I came in one day to find my stops were no longer in place and was told that they needed to be replaced. In thinking about it now, I can not imagine how my broker contacted the floor after 4:00 to take my stop out, which I assume is on the specialists book. Unless, of course, the stop never got there to begin with.

2) While I should know this, I realized that perhaps I don't fully understand something. In direct access and with prop firms, how "direct" are your orders. In other word, is a person from the clearing firm or broker (or if they are the same) actually handling your order at all or is it going directly to the specialist. Same question for direct plus which should be automatically executed.


3a) A buy stop is entered and it is OBVIOUSLY the wrong price. Say 38.80 instead of 388. Specialist receives when the price is 380. I say that the specialist will execute the buy stop immediately. My friend says that it will not be executed and if come back from lunch and the stock is at 400, you are out of luck. Does anyone have an OFFICIAL rule on this.

3b)Trader claims that there is no way that he put in 38.80. First, could broker have assumed it was 38.80 and it be the one who screwed up (if order went their first). If so, how can this be challenged.

4) With traditional accounts, one gets confirmation statements. If there is ultimately a major dispute, can one demand some form of same from the clearinghouse/broker?

Thanks.
 
i will try to answer.

1.when all stops are canceled its usualy some kind of technical glitch that happens somewhere and they just kill all the stops at once to make sure they are entered correctly.

2.they are direct to specialist.

3.the specialist always gives you best posted price.you get filled at best unless an ecn takes out your order first.an ecn will fill you at your sent price if someone sees the mistake and hits it.(this happened to me once.a stock had split over night and i forgot about it. the next morning premarket i see the stock is showing an ask a couple bucks under prior days price and i hit it.when the stock opened i owned a stock at double the actual price.isld is no mans land after hours be careful.)

3b.you just call up the exchange and ask to bust the trade.if a trade is clearly out of market they will bust it.

4.you can ask for an official audit if you dont believe your broker.
 
Originally posted by dc441711
1) If a position is held overnight with a stop put in, is there a way that your firm (prop firm) can "wipe out" the stop after the market closes? I came in one day to find my stops were no longer in place and was told that they needed to be replaced. In thinking about it now, I can not imagine how my broker contacted the floor after 4:00 to take my stop out, which I assume is on the specialists book. Unless, of course, the stop never got there to begin with.

2) While I should know this, I realized that perhaps I don't fully understand something. In direct access and with prop firms, how "direct" are your orders. In other word, is a person from the clearing firm or broker (or if they are the same) actually handling your order at all or is it going directly to the specialist. Same question for direct plus which should be automatically executed.


3a) A buy stop is entered and it is OBVIOUSLY the wrong price. Say 38.80 instead of 388. Specialist receives when the price is 380. I say that the specialist will execute the buy stop immediately. My friend says that it will not be executed and if come back from lunch and the stock is at 400, you are out of luck. Does anyone have an OFFICIAL rule on this.

3b)Trader claims that there is no way that he put in 38.80. First, could broker have assumed it was 38.80 and it be the one who screwed up (if order went their first). If so, how can this be challenged.

4) With traditional accounts, one gets confirmation statements. If there is ultimately a major dispute, can one demand some form of same from the clearinghouse/broker?

Thanks.
More...


1. I don't know what you mean by "broker" - since all orders are entered electronically, it would depend solely on your firm, and the type of order you placed (day vs. gtc).

2. One of the benefits of trading with a firm like ours is that your orders do go directly to the Specialist, and you (as a professional) are responsible for your orders. Our training goes into detail about how to handle your orders.

3. Generally, if a DOT order is way away from the market, it will get rejectec. But this is not as obvious as you might think...some of these orders are placed $50 or more away from where the stock is trading.

3b. Again, I don't know what you mean by "broker"...your order goes to the Specialist...his "clerk" may review the order (maybe that is who you mean)....but they should not "assume" anything.....in either case, you are responsible for your order....just like a computer....they don't know "what you meant" only what they see.

4. This is handled differently at our level, all "out trades" must be reported prior to the next day's opening (that is why we have all our "sheets" ready for the traders early AM. If there is a real "error" it can be negotiated with the "other side" at times.

Hope this helps
 
"1) If a position is held overnight with a stop put in, is there a way that your firm (prop firm) can "wipe out" the stop after the market closes? I came in one day to find my stops were no longer in place and was told that they needed to be replaced. In thinking about it now, I can not imagine how my broker contacted the floor after 4:00 to take my stop out, which I assume is on the specialists book. Unless, of course, the stop never got there to begin with."


here is perfect example of what happens at times.


To RDBK traders
Mon Jun 17 18:39:29 2002 EST

REDIBOOK: All working orders have been cancelled due to order management issues at the exchange. All Redibook systems are still available as of 18:38 EDT.
 
The ECN's can and do go down at times (I recall ISLD costing me $20K in 15 minutes)....and we are not in a perfect world...but we are in a damn good trading world....and executions are excellent at all levels, some better than others.

Things are getting better all the time!!

Don
 
Originally posted by Don Bright
The ECN's can and do go down at times (I recall ISLD costing me $20K in 15 minutes)....
Don
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What??!! How many letters were in that stock's symbol anyway?:)
 
Originally posted by mike s


What??!! How many letters were in that stock's symbol anyway?:)
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You thought you caught me, but I was playing the QQQ's at the time....:)

Don
 
Originally posted by Don Bright


You thought you caught me, but I was playing the QQQ's at the time....:)

Don
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but...but...what about your buddy the Specialist?:)
 
Originally posted by mike s


but...but...what about your buddy the Specialist?:)
More...

AMEX Specialists are No-one's "Buddy"....I much prefer Isld for QQQ's.

The "hybrid" specialist system on the Amex is a nightmare....having MM's in the crowd, the Specialist allocating orders around, etc.

Back to work!! :-)

Don
 
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