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Strategies & Market Trends : News Links and Chart Links
SPXL 200.43+2.9%Nov 21 4:00 PM EST
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To: Les H who wrote (5436)2/4/2003 9:18:11 PM
From: Les H  Read Replies (1) of 29599
 
From the Big Ooops folder - some order clerk apparently entered (or rather mis-entered) several large orders into Globex late this afternoon for the S&P emini. The mistake triggered about a 60 second cascade of fills up to 90 points above the market and also apparently triggered some sympathetic reaction in the SPY. The improperly triggered trades are being busted.

On one hand, it's easy to argue that the exchange needs to bust the trades - almost 6000 contracts filled at up to 90 points above the market is an up to $27 million loss for the (mis)entering firm. On the other hand, if YOU miskeyed an order and got filled, the exchange isn't going to bust your trade for you. You'd have to eat it. Perhaps instead of just busting all the trades and sweeping the event under the rug, the CME should give the firm the choice of eating all the contracts as they were executed (like you'd have to) or paying a fine of say $15 million and immediately implementing order entry edits to prevent such miskeys in the future.

Aside from the short lived excitement at the end of the day, things traded in a fairly narrow range after the morning gap down open with traders mostly sitting on the fence.

3mtinc.com
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