Shorted RFX... Hmm.. Now what?

Quote from areyoukidding?:

i dont think its legal. if the stock is halted it is on every exchange.
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I agree but then how is it the brokers are able to adjust the bid/ask lower from the last price which does reduce your bp and margin requirements...

If the broker is going to discount the stock ie to X and I have some one willing to give more then how could they justify not doing it...
I believe the halt is for the open market..and this trade would not fall under that structure..

I'd be interested in what the brokers reason for not would be..


w
 
Quote from areyoukidding?:

i dont think its legal. if the stock is halted it is on every exchange.
More...

also the brokers to allow shorts must own the stock..
the bid/ask they are offering or showing is what they ? are willing to accept ...via ie smart route...which is an internal operation if I am correct..
If say IB / ETrade offer a client X to allow them to cover..and exit...and say another trader will offer more...the broker would have an interesting time not matching or allowing the close..

it still is a situation where one bid..one ask...

will be interesting ..

w
 
Quote from nassau:

I have an idea...
not sure how it would work but would be willing to find out.

You have shorts at ie 10..there are obviously traders that would be willing to exit there longs at X...
IF the stock is going to continued to be halted and you wish to exit ....I don't see why your broker will not do the internal trade for you...
If the broker is willing to place a ie bid/ask in the 5dollar range and the stock is still untradable in the open market I don't know of any law that would prohibit the two traders doing the trade...especially if you are both say via IB on smart route..

This obviously would be harder to do if both traders are at different brokers...but it can be done..

w
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Come on, was that a serious post? No, it cant be done like that. A broker cannot decide to trade a stock that the exchange has halted, How are they going to explain that when the NASD or SEC comes in to audit them? "Umm we thought it didnt apply to us so we made up a bid and ask and traded it on our own." Thats not how it works and it cant be done like that.
 
tnewman1

I just checked with some friends I have that are in margins and also others in stock loans at a couple of firms.

I was told that your stock can be called back even before it starts trading again. This is already happening on the street. But, the firm shouldn't be able to buy you in with no active market. I was told that probably one of the biggest risks is that if a person's stock is recalled before the stock starts trading and they are bought in by the firm (along with a lot of other forced buy ins on the street) there might be some really bad fills in the early trading because you might be bought in at the open of trading or even on an initial pop after the open of trading. Stock loan told me they didn't know of any out until the stock resumes trading or is declared worthless and that when it resumes trading to hope it is your decision when to buy in and not a forced buy in controlled by the firm.

If they are accepting orders you might want to consider putting in a GTC order way down where you would be happy to be filled. I have seen stocks trade only for a few trades after a halt and then be halted again or trade in a very wide erratic range upon reopening.

Hope this helps

Good Luck
 
I put in a GTC order at 2 because I wasn't sure and sure as hell can't be greedy. Now that's it's OTC (sometime), I might be able to cover it. I'll see, but I won't spend the money just yet... This is a weird short scenario I've never been in before.

I see that my GTC order was dropped. Probably because the stock is going to be delisted and will trade under a different symbol.. My guess..
 
Quote from nyc-hotshot:

Come on, was that a serious post? No, it cant be done like that. A broker cannot decide to trade a stock that the exchange has halted, How are they going to explain that when the NASD or SEC comes in to audit them? "Umm we thought it didnt apply to us so we made up a bid and ask and traded it on our own." Thats not how it works and it cant be done like that.
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Yes it was a serious post..I am not an expert nor claimed to be...perhaps you would be so kind to enlighten me with what legal or information you have that would/will back up your statement. There is nothing wrong with brain storming.

I am not talking about open market trading...this would be an internal ledger entry,
Perhaps you could also explain to me how the brokers are allowed to change the stock bid/ask to what ever they believe.
This is a fact, it reduces the accounts bp and margin requirement.
What stops a broker from saying the bid/ask is x.. it causes accounts to be restricted in trades as bp is lower and in worse case sceanarios liquidation if the account receives a margin call?

The brokers have the opportunities of picking up the now delisted stock for dollars/pennies.?

w
 
tnewman1

I checked with a friend on an equity desk he told me he doesn't have any info yet on a new symbol. He said it might start trading regular OTC might be pink sheets, bulletin board, etc. He just has no info yet. He also said sometimes there is a notice before trading starts but sometimes the first notice you get is trades coming through!!!!

Might want to check with your broker to make sure you are sitting with an order in as soon as it is possible. If that is where you want to be.

Good Luck
 
Quote from nassau:

Yes it was a serious post..I am not an expert nor claimed to be...perhaps you would be so kind to enlighten me with what legal or information you have that would/will back up your statement. There is nothing wrong with brain storming.

I am not talking about open market trading...this would be an internal ledger entry,
Perhaps you could also explain to me how the brokers are allowed to change the stock bid/ask to what ever they believe.
This is a fact, it reduces the accounts bp and margin requirement.
What stops a broker from saying the bid/ask is x.. it causes accounts to be restricted in trades as bp is lower and in worse case sceanarios liquidation if the account receives a margin call?

The brokers have the opportunities of picking up the now delisted stock for dollars/pennies.?

w
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I apologize if I came across as rude in my last post.

However, theres no reason to argue about it. It simply cannot be done that way. Lets just move on.
 
Quote from nyc-hotshot:

I apologize if I came across as rude in my last post.

However, theres no reason to argue about it. It simply cannot be done that way. Lets just move on.
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agree and no offense taken.

good luck with your trades..

w
 
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