what f*ck just happened

This reminds me of an error we caught back when I worked for a small retail brokerage firm at the CBOE. Had a new customer saying she wanted to buy 1200 deep in the money puts on HWP, we quoted the size market and I said to her "You realize that with 1200 puts you have the equivalent position of short 120000 shares of HWP ?" Her response, "120000, no I just need to hedge 1200 shares !!" The 1200 lot order was only supposed to be for a 12-lot !!! Luckily it was caught before anything traded , but the point is that wherever that order came from, that firm should've had more controls to stop that from happening, and if they don't want to take the effort needed, they should be forced to pay for their mistakes like the rest of us.


Vega:eek:
 
I have actually been a big fan of Kirk Hinrich.
It was very nice to see him go as a 7th pick in the first round!
With a few adjustments, I'm sure he will do very well in the NBA.

I guess Jimmy Boeheim was simply "due".
He is in fact, 4th among active D-1 coaches in winning percentage (.743 )

Peace.
 
TO WAGGIE AND ALL OTHER GUYS WHO LAUGH AT
"CONSPIRACY THOUGHTS"

...well, you should probably check twice next time,
before posting offending sh*t.

After inquiry I was informed by CBOT that a full investigation
to this issue is under way and the firms/persons involved
are currently under audit from several authorities.

So, you probably count CBOT compliance also to
"conspiracy searchers" ?
 
Quote from saschabr:

TO WAGGIE AND ALL OTHER GUYS WHO LAUGH AT
"CONSPIRACY THOUGHTS"

...well, you should probably check twice next time,
before posting offending sh*t.

After inquiry I was informed by CBOT that a full investigation
to this issue is under way and the firms/persons involved
are currently under audit from several authorities.

So, you probably count CBOT compliance also to
"conspiracy searchers" ?
More...

And I'm sure the exchange's own compliance department is totally unbiased and unfettered by commercial considerations or pressures. Naturally...

:)

Natalie
 
My, my . . .
You are really freaking out, my friend!

What else did you think the CBOT was gonna say?
Full Investigation?

Sure, pal.
Just like Whitewater.
Let me know how it all shakes out.
Then tell me how the fresh news from the investigation has helped your trading. Are you any better off because of it?

Perhaps while you are at it, you might also want to ask them where the precedent was in the Regulations of the Exchange that allowed the CBOT to cancel all trades below 9018.

In deference to your "conspiracy thoughts" I will abstain from trading any stock-index futures contract during a Holiday shortened session. Until then, just make sure that you DO NOT TRADE UNLESS a floor clerk gives you the heads-up when a large hedge-fund speculator tries to sell 5,000 S&P Futures, MOO ( market on opening ) when only 50 locals are in the ring.

By the way, if you think that the CBOT's Compliance Department is "unfettered" ( Natalie, nice choice of words I must say ) by "commercial interests and concerns", then you my friend are even more irrationally obsessed and paranoid than I initially thought.

As traders, we've got enough to worry about besides ridiculous conspiracy theories. PARANOIA, SELF-DESTROYA!

Peace.
 
to all short sighted traders:


http://www.thestreet.com/markets/aarontaskfree/10103840_3.html



Monday morning, a CBOT spokeswoman said the incident is "currently being reviewed" but declined to comment further. Most market participants believe the trade was no accident.

"The CBOT made it clear you can't assume this was a fat-finger error, implying something done on purpose," said John Lothian, president of the electronic trading division of Price Futures Group in Chicago.


The episode demonstrated the potential for mischief, he continued. "If you know if you create an error in mini-Dow and it's going to be busted so you're not liable outside a certain range, and it's moving the other markets where those trades won't be busted," there's little disincentive for someone with nefarious intentions, Lothian said. (The episode also emboldened conspiracy theorists who believe the markets are increasingly manipulated via the futures, albeit usually to the upside.)

Of course, it's possible the 10,000-lot trade was placed in error and/or whoever was responsible will face stiff penalties, discouraging imitators.
 
Looks like the hedgers were doing a little front running this morning, they ran it up - took it down to clear everybody out and then let'er run. That's how they play the game.

Wavetrader
 
The July 3 incident was caused by a clerk entering an account number (18000) into the quantity field of a broker's online order system. It was a market sell order. It's written up in the current Futures Mag.
 
Quote from mgkrebs:

The July 3 incident was caused by a clerk entering an account number (18000) into the quantity field of a broker's online order system. It was a market sell order. It's written up in the current Futures Mag.
More...

- It was 10000 contracts
- Maybe it was just a clerks error, maybe he was instructed
to do so.
 
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