Question on Eurex Combo Execution

D

dhpar

So after 17 years with IB I had a crazy experience today. I executed a market order to sell (one option) at about 16:30 CEST. The market/bid was at 29.25 (see picture) and deep. Somehow my trade got executed immediately at 24.80, i.e. 5.45 (20%) below the market (with the market not even flinching).
Clearly some kind of an error on part of IB - but after trying to resolve it later with them they said they want to have nothing with it (some guy called Albert). Did this happen recently to anybody here? It is basically stealing customer's money...
 

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i understand the disadvantages of mkt orders. you have no guarantee wrt execution as the market can move swiftly. but that should not imply that your broker screws you up when he sees a market order (and for instance buys everything conveniently for himself at zero...). and clearly 20% below the existing deep market!!!
 
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dhpar said:
i understand the disadvantages of mkt orders. you have no guarantee wrt execution as the market can move swiftly. but that should not imply that your broker screws you up when he sees a market order (and for instance buys everything conveniently for himself at zero...).
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IB can internalize orders. That's the problem when you trade with a market maker. I feel for you as that's a tough pill.
 
dhpar said:
So after 17 years with IB I had a crazy experience today. I executed a market order to sell (one option) at about 16:30 CEST. The market/bid was at 29.25 (see picture) and deep. Somehow my trade got executed immediately at 24.80, i.e. 5.45 (20%) below the market (with the market not even flinching).
Clearly some kind of an error on part of IB - but after trying to resolve it later with them they said they want to have nothing with it (some guy called Albert). Did this happen recently to anybody here? It is basically stealing customer's money...
More...

Sad to say with Market Orders my fills have been better with Free Online Brokerages as Knight-Citdel is big enough to make Markets(Internalize) in most active stocks. Unless there is a dark-pool order waiting for your Market Order you will get filled at the Bid.
 
the point really is that if I can sell it at the market for 29.25 then they should not sell it to someone internally for 24.80. That's stealing, plain a simple!
 
because it is called a market order! at DTB in this case. not some "IB takes your assets and sells them to some crony guy for a cheap price" order.
 
ballsofgold said:
just want to jump in here, the other guys are right but they are not helping you

I would take the angle with IB from a regulatory perspective that they are not employing best execution practices that pricing has to be fair and transparent. Don't let this one go..the owe you a credit note if what you say is true.

https://www.finra.org/rules-guidance/guidance/reports/2017-report-exam-findings/best-execution
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thank you. that is helpful. I will first notify IB about that and if they decline to act on it I will proceed with the regulatory help. Cheers
 
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