Quang:
Thanks for the note. Well, first off, eshwab, or let me say, Schwab, is a good firm. That is, while I dislike that they act as principal or route everything to MASH, Mayer and Schweitzer, a wholly owned subsidiary and one of the largest market makers in the world, theydo offer a good service to the average investor. They have good technology and a fast website, etc. But lets not minimize the detriments of the internet and then the detriments of a firm that makes markets, acts as principal and possibly routes the order away from the most liquid exchange.
First off, I don't know what they are referring to as a que. I know I have stated that theinternet is slow compared to pickingup the phone and giving me an order in seconds, but 15 minutes seems ludicrous. No internet "que" or backlog should take 15 minutes. I can route and order down to superdot and get an execution back, if the price is there, in about 5 seconds, giving you a report while I have the phone against my ear.
Short ticks? Normally for selling short you need an uptick. Here you definately got one as the stock moved UP through your price. All the prints from the 1/2 to and 5/8 were upticks....you shouldhave been executed at 1/2, at worse, or 5/8 at best. These were all upticks and you probably would have been guaranteed a report on the NYSE.
My feeling is that one of the following occurred:
1. The firm simply had an error. Either the trader who was trying to snag an 1/8, or 1/4 for the firm's investory account on your trade, forgot to work it and when the stockwent lower didn't want to be long the stock at your price, or;
2. The firm's computer system had a glitch and lost your order. After all you were in there 15 minutes before it traded in that range for the twominutes; or
3. The firm routed it to a third market makers or a less liquid exchange like the P-Coast (pacific coast)...it is ok for this to happen as long as you get the same standing as if you were on the NYSE...meaning, good for them if they can keep their costs down, but only and only if they do so giving you exactly the same execution quality, price as you would have gotten on the nYSE. they have to match the nyse, tick for tick. Most won't and can't. They can't make a market and make the spread if they did this.
Suggestion:
Call them. Talk to a sales manager. Explain the situation and demand that you get the execution at the price you entered (orbetter ifyou look at times and sales and you should have gotten 5/8 or more). state that you are disappointed with the service and are considering possibly pursuing a claim with NASD if it isn't resolved.
They need abetter answer than simply saying "the que" was backlogged. That's not your fault. They will probably have 10 different clauses in your contract that say that, yes, they are not liable when its a "que" issue or that they are allowed to make market (infact, you can verifythis by looking at your confirm, it usually states it there).
Whether they want the headache might getyou your print. Also, wait for the open before you pursue it. I have seen firms give reports the following day once the stock moves against the client. They are allowed until the open to correct errors from the previous day.
Anyway, ultimately, you have to ask yourself why you would do business with a firm that even uses the word que instead of realizing they made an error (don't get me wrong, even we make errors), its their fault and simply make you good on your trade without you feeling bad and having to pursue it like this. You entrust thousands and thousands of dollars with these firms. You want them on your side.
Hence, my firm's niche and our success for 20 years! (you couldn't expect me to give you a detailed response like that, which should helpyou get your print, if you still want it, without dropping a name...lol!)
Regards,
Steve@yamner.com
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