Thank you for your reply, Steve. Your reputation for quality is well-deserved.
In reply, I will mention that Datek did phone me shortly after the trade was executed. I was not ignored, but I was not in to take the call.
Second, should I replace the word 'to' with the word 'no' in your reply? Legally, unless you find wording that says they MUST give you notice, I would think you have to claim.
Datek's Account Agreement says that I may have no prior notification and that Datek may buy me in at any time.
I did speak with Tim Richter at Datek, who speaks pleasantly. He presented the circumstances that CNS (their clearinghouse) executed the buy-in themselves without notification to Datek and subsequently had Datek make good.
The executions were adjusted today to $6 63/64 on, as before, all 18719 shares of TTF that I was short. Trades were in two lots - 13,800 and 4919.
Time and Sales (copied below), provided to me by a friendly SI member, show a 10,000 share trade and a 13,800 share trade at 15:51 on NYS. I assume that these trades were those buy-ins. Those were the final trades of the day. If I read this correctly at the time, the bid/ask was around 6 3/8 x 7 1x328. An abnormally large spread by the way - and I have watched TTF for 18 months.
I can see that ask for 32,800 shares at $7 entered, I believe at 10:33. Most trades for the day went off at $6 9/16.
So, I guess my question is, how and why did CNS decide to execute the buy-in at that horrible moment? Did CNS have fore-knowledge? The trade appears to have executed on the NYSE, so no one keeps the spread, right, except that lucky seller.
Who could that lucky seller be - a professional short-squeezer do you think? The pricing on TTF has been acting strangely lately - going up to $7 and back to $6 several times. Perhaps I was just the next victim to be mowed down by ..... who?
Did CNS profit unfairly by this trade? Did CNS have prior notification for the buy-in? How did that 32,800 share ask suddenly become marketable at 15:51 when the bid was $6 3/8? Did the shares suddenly shift to a cash account?
I don't get how this works.. How did I get forced to buy and how was the price determined?
As an aside, Datek says that if I had bought the shares on Friday (on my own, without any notification from Datek) CNS would still have bought my shares in, as my Friday purchase would not have yet settled, and I would have ended up 13800 shares long. Can this be true?
Thanks much, Peter Michaelson
11/16/98 15:36 Bid 6 5/8 200 NYS 7 500 CSE
11/16/98 15:36 Best Bid 6 13/16 100 NAS 7 500 CSE
11/16/98 15:36 6 7/8 200 NYS Trade
11/16/98 15:36 Bid 6 1/2 100 CSE 7 500 CSE
11/16/98 15:36 Bid 6 9/16 100 NAS 7 500 CSE
11/16/98 15:36 Best Bid 6 3/4 2000 PSE 7 500 CSE
11/16/98 15:36 Bid 6 1/2 100 PHS 7 500 CSE
11/16/98 15:36 Bid 6 3/8 100 CIN 7 500 CSE
11/16/98 15:51 6 15/16 10000 NYS Trade
11/16/98 15:51 Ask 6 3/8 100 CIN 7 32800 NYS
11/16/98 15:51 Best Ask 6 3/8 100 CIN 6 15/16 100 NAS
11/16/98 15:51 Ask 6 3/8 100 CIN 7 1/8 100 PHS
11/16/98 15:51 Ask 6 3/8 100 CIN 7 100 NAS
11/16/98 15:51 Best Ask 6 3/8 100 CIN 7 32800 NYS
11/16/98 15:51 Ask 6 3/8 100 CIN 7 200 NAS
11/16/98 15:51 Ask 6 3/8 100 CIN 7 1/4 100 CIN
11/16/98 15:51 Ask 6 3/8 100 CIN 7 1/2 5300 PSE
11/16/98 15:51 7 13800 NYS Trade |
