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Trader Liability for Broker Errors
- Thread starter trdrmike
- Start date
Quote from trdrmike:
Which prop firm has the best policy for busting trades and reimbursing traders for brokerage errors?
Interesting question. Since all of our traders are licensed "brokers" themselves, they are responsible for their own order entry, so "errors" don't really occur.
On the other hand, we do have "errors" that occur at the other end of the pipleine, and when that happens, we are fortunate to have Goldman Sachs go the trading floor/ECN and correct mistakes.
There have been times when a trader was due an opening only trade, and we called Goldman, and the trader would get the proper fill (this happens every so often in the lower volume stocks).
We have had trades exectuted a dollar higher, after hours, and those get busted (generally).
FWIW,
Don
My problem today was actually with GS. The closing price for CLP was not adjusted for a one time special dividend until 1 hr after the open. I thought I was buying the stock down 1.73 when instead I was paying up 0.94. I bought more on the way down thinking I was getting a bargain and got hosed. I'm assuming that even though it was GS's screwup, I have no recourse?
Quote from trdrmike:
My problem today was actually with GS. The closing price for CLP was not adjusted for a one time special dividend until 1 hr after the open. I thought I was buying the stock down 1.73 when instead I was paying up 0.94. I bought more on the way down thinking I was getting a bargain and got hosed. I'm assuming that even though it was GS's screwup, I have no recourse?
Yes, we did our best on that, but since the Dividend news had been out for a few days, and these "special" dividends are tough to track, they couldn't be responsible for it. I'm really sorry Mike, we did our best.
Don
I appreciate the quick response Don. I realize it is much easier to correct specialist errors than data feed or line errors.
FWIW, I've been a beneficiary of specialist errors in the past because Bright has gone to bat for me.
I was just curious about the current policies at GS and other brokers for situations like these. The old PaineWebber desk used to stash these losses in the error account if you complained loudly enough. Then again, that was a different time and age.
FWIW, I've been a beneficiary of specialist errors in the past because Bright has gone to bat for me.
I was just curious about the current policies at GS and other brokers for situations like these. The old PaineWebber desk used to stash these losses in the error account if you complained loudly enough. Then again, that was a different time and age.