As you note, Jeff, the answer is not totally specific. I have
NEVER seen Scwab's set-up, know NOTHING about it and cannot comment on it.
I CAN tell you that the ADP system allows a firm to set dollar limits
where a trade is automatically kicked out for manual review. In my
experience, these limits tighten up in times of market volatility,
AND/OR in the case of particularly volatile stocks.
One of the reasons for my origial note and my being confident that
ALL orders are checked somehow, in addition to the compliance issue,
is reinforced here. The "Fed call" mentioned by Schwab.... you see
if YOU cannot meet it, the firm that took the order MUST. Every firm
is responsible for the orders it enters. Unlike a bank, where a transaction can be voided, there is no such thing as reversing a trade on the NYSE.
You may have a six figure account, or more, and you may have xxx,xxx.xx of buying power and only want to buy $25,000.00 in stock.
But if $10,000.00 (a random number), is the limit, your trade will
be subject to review prior to being sent on.
In a smaller firm, or even in a big firm where you dealt with someone
quasi-regulary, they would know you & you would not encounter this delay. Unfortunately, there ARE trade-offs for cheaper commissions.
As a famous man once said: "When you pay peanuts, you get monkeys."
Doug |
