*off topic* bulletin board buying
I was really steamed - trying to buy MABA early one morning, about 9:20 (after seeing a hypy press release). Put in a limit bid above both the current bid and ask. For an HOUR, Maba was sold under my bid, on steady non-remarkable volume. My better bid did not register. I missed a buy, and the stock moved up from 3 to 5. Complained to Schwab. Here's their reply. Do you folks buy it?
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Thank you for your e-mail regarding your 03/02/00 order to buy 1000 shares of MABA at a limit of 3 1/16.
Our records indicate that this security moved away from your price at 10:51. This security is traded on the Over-the-Counter (OTC) Bulletin Board (also called the "pink sheets").
Pink sheet orders are not eligible for automatic execution systems, and thus must be manually worked by a trader. Often this requires locating a dealer to execute the trade, and finding a suitable dealer for the order requires calling up a minimum of three dealers in order to get the best quote (calling a minimum of three dealers in this situation is a regulatory requirement).
Your order is then submitted to the dealer that gave the best quote, and it is processed on an agency basis by this third-party firm, then reported back to Schwab. This process takes time, sometimes as long as an hour in high volume situations. Please also be advised that these orders are handled on a first in, first out basis. Therefore each market order placed prior to yours must be processed prior to your order.
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Do they really use the telephone?! Three calls??
I find this hard to believe, because my bulletin board orders are often filled quickly, in full.
In this situation, it felt like a breakdown in communications. |
