Rodger said he placed market order to buy 400; so all or none would
be redundant and actually restrict a quicker fill. Partial fill would only
fill in round lots; so in that scenario he would at best get 300. However,
he placed an order to "buy 400 MCIC at market." Any change from that
is the broker's discretion and he certainly doesn't have a discretionary
account. Remember Schwab doesn't recommend -- price, order size,
timing, day vs GTC, or any other restrictions. So they don't have that
leeway. A full-commission broker might take that risk on but I can't see
a discount house (especially an electronic one) doing it. If Schwab
filled 398 shares at 29 or so and the merger turned out to be false,
Rodger would be livid there too because the stock would turn south.
From the situation described, it sounds like Schwab was within the
rules. He may have been filled at another firm or maybe not. If not this
time, then he could conceivably get shafted elsewhere. On the surface
it "appears" he was unquestionably due, but looking at the technical
aspects and NASDAQ trading rules -- he would have no case since the
rules were followed. I'd have to look at the actual trade to determine
100%.
As a trader, I find it frustrating that every time a trader thinks they
were due and weren't it's because the brokerage was out to screw them.
With over a billion shares traded daily, we don't have the TIME to
screw people. Not to mention that the NASD has the ability to monitor
these very things and the price one pays is heavy. I guess I can't
convince everyone though.
RR |
