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Non-Tech : Online Broker Down - Sue 'em - EGRP, JBOH, AMTD, SCH, NDB
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To: Dow Jones Reporter who wrote (21)2/9/1999 2:54:00 AM
From: Yoseph Seyoum  Read Replies (3) of 253
 
LAWYER NEEDED. I have a case and I am Suing Etrade.

I am one of the many unlucky Etrade customers that got burned modestly with Etrade's
screw up. On the first day of the system failure I was using power Etrade's level II
real-time (so I thought) data feed to go long on JBOH. I had just put in a market order for
JBOH when the ask was 19 1/8. I waited for a confirmations for about 30 seconds and
nothing happened. The price kept going up but no confirmation more than one minute into
the trade. JBOH was still climbing so I decided to put a stop ls order at 19 just to be
safe. All the time I kept refreshing but still no confirmation. The price keeps going up and
I kept moving up the stop ls to $22. Confused and worried I call power Etrade brokers on
the phone and demand my execution price. The broker checks his computer and does not
see any confirmation even though it had been close to 5 minutes since I place my order.
He tries calling the market maker for several minutes and no answer.
I explained to him I had placed the order around $19 and it has moved up all the way to
$23 and I wanted to get out with a nice profit. He assures me that since it was a market
order that It had already executed and the only problem was I had not received a
confirmation. He recommends that I sell immediately and close my position in the black.
However, my screen is showing me that JBOH was now trading close to $24. Trying to
be prudent and avoid a market sell order I asked the broker to move up my stop ls order
from $22 up to $23. He checks his bid/ask and he tells me that it was now trading around
$21. IMPOSIBLE!!!!!!!!!!!!!! I YLED, I WAS SEEING $23 7/8 AND HE IS TELLING
ME IT WAS TRADING AT $21. “IN REAL-TIME”. IT APPEARS I WAS GETTING
DELAYED LEVEL II FEED. He goes and checks different quote services and he
informed me my real-time prices were not so real.

It is now over 10 minutes and I still don't have confirmation. The broker informs me that
the price had already gone through the $22 stop loss target and it should be executed
(apparently there is no way he can tell since there is still no confirmation).Assured that I
had locked some amount of profit I try and dry my sweaty palms.

LATER AFTER THE SYSTEM IS “RESTORED” THE CONFIRMATION COMES
BACK. Now listen to this. THE MARKET ORDER WAS FILLED AT $23 7/8 AND I
HAD SOLD AT $22.00. I HAD LOST 1 7/8 EVEN THOUGH I HAD PLACED THE
ORDER AROUND $19.

THE LEVELL II DATA I WAS SEEING WAS DELAYED. AND I DID NOT GET A
CONFIRMATION FOR OVER 15 MINUTES.

DO I HAVE A CASE OR WHAT?
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