Whoa Baby! What happened?

McCloud · Feb 4, 2003

IB:

To all traders
Tue Feb 4 16:45:53 2003 EST

Globex Trading Update

Globex has just notified us they are breaking
all trades in ESH3 executing above 860.00 between 16:00 and 16:15 EST.
====================================================

cheeks · Feb 4, 2003

Quote from acrary:

Got the details now. Three errant trades of 2,000 lots each were entered into the system. Everything above 860 is cancelled. The originator is eating the losses on all fills up to 860.

I think that is fair.

nkhoi · Feb 4, 2003

it is a conspiracy to mess up my beautiful hand draw trend line.

Tech Analysis · Feb 4, 2003

Quote from acrary:

Got the details now. Three errant trades of 2,000 lots each were entered into the system. Everything above 860 is cancelled. The originator is eating the losses on all fills up to 860.

That's quite a meal. Probably some first-day-on-the-job clerk.

Lobster · Feb 4, 2003

Quote from cheeks:

I think that is fair.

I disagree. But since all the "electronic exchange" casinos seem to be operating like this, I suppose I am in the minority.

If I buy 2000 shares instead of 200, do you think anyone breaks my trade?

Fair would be to have clients check their orders before they send them to the exchange, and if they fail, it should be their own loss. They could buy "moron clerk insurance" for scenarios like that. It should not be the exchanges' concern.

ZBEAR · Feb 4, 2003

Seems that there should be some FAIL SAFE code in the Globex programs to avoid those types of moves ???

Guess that's a Logical thought - therefore
that's exactly "Why" it ISN'T in place.

Quah · Feb 4, 2003

Quote from Lobster:

I disagree. But since all the "electronic exchange" casinos seem to be operating like this, I suppose I am in the minority.

If I buy 2000 shares instead of 200, do you think anyone breaks my trade?

Fair would be to have clients check their orders before they send them to the exchange, and if they fail, it should be their own loss. They could buy "moron clerk insurance" for scenarios like that. It should not be the exchanges' concern.

I agree with Lobster. Busting the trades is BS IMO. For all we know, it wasn't accidental, the "originator" might have thought he had some inside news on Saddam being killed or something. Who says the trades were entered in error?

Lobster · Feb 4, 2003

Quote from ZBEAR:

Seems that there should be some FAIL SAFE code in the Globex programs to avoid those types of moves ???

Guess that's a Logical thought - therefore
that's exactly "Why" it ISN'T in place.

I find that reasoning logical, too. I suggested it on here in the case of ISLD. The point is if you are going to bust trades based solely upon price action, it is your responsibility to do everything you can (like add some 20 bytes of code to the matching algorithm) to prevent these trades from printing in the first place.

TheCaracal · Feb 4, 2003

Quote from Quah:

news on Saddam being killed or something.

This is funny, I was short the SPY today and we would not take out last weeks low, so I was getting uneasy, and bagged the trade. I figured with my recent luck, Saddam would probably croak today and remarked to my friend that could probably put a 100 point spike on the Spooz.

That's what I thought that was at first!

Sorry to get off topic, I hope no one got too hurt. Even a stopout at 860 can singe.

Tyler_EFT · Feb 4, 2003

This same thing happened on Eurex not too long ago. You would think they would learn from others mistakes.