Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Brown Bear who wrote (1790)	11/25/1997 7:04:00 PM
From: wiz	Respond to of 4969

Battered Bear-g- OUCH!!!! I have a barrel of great Etrade tales, but this one is hard to beat. What was the bid and ask of the puts... 100s at the time of your sale?? I'd say you are due the sale price at the time your mistaken order went through. I'd like to see you get the 3 bucks, but don't see it happening. Mark

To: Brown Bear who wrote (1790)	11/26/1997 9:55:00 AM
From: steve goldman	Read Replies (1) \| Respond to of 4969

You would have to call me on this one. If the mm made an error with the options, he can break before the open the next day. But outside of that, it sounds real fishy. Your firm should have gone to bat, big time, for you one this one since they are now valueless, about a $12,000 loss to you. call if you want. regards, steve@yamner.com 800.221.5676

To: Brown Bear who wrote (1790)	11/26/1997 11:04:00 AM
From: Robert Graham	Respond to of 4969

I was told that the market makers changed their mind & they have 3 days to do that. I definitely am not familliar with this area of the financial markets: the specific rules MMs have to follow. However, with all the reading I have done, I do not think this is true because it would compramise the basic integrity of the market making system. Also, from what I understand for instance about a stock transaction, a trader can "renig" on a deal be claiming a "mistake". This is when the tickets that were filled out by the parties involved in the trade recording the transaction were found not to agree. They are required to resolve this discrepency the next day. Usually it ends up that one party admits to the mistake and makes reparations by meeting the previously agreed to price. Sometimes they negotiate, which can mean splitting the difference. However, this is a comparatively rare event. If this is not a very uncommon event with a trader, then the word would get around and nobody would do business with them. Since this is a MM, I would think there are very strict rules about the handling of this situation. I would think at the very least, this "mistake" would be noted by the clearing agency. I think you would be able to facilitate this process by contacting the clearing agency about this discrepency, once you have a copy of all applicable records in hand. Hmm...I wonder, does your brokerage firm make the market in this option? At best, the MM would have to make good and may even by fined if not removed from his market making position after an investigation. MM generates allot of money for companies. This is big business. So perhaps you can talk to the firm that makes the market in this option. I would think that one they find you to be serious about pursuing this matter with the exchange officials and the clearing agency, they will settle. I also think this would be true even if technically they did not violate any regulations. The MM firm cannot afford to have their reputation with other traders tarnished in this way where they have not made good on a transaction. Their credibility in this area directly impacts their livelihood. In this case, I think it would be helpful if you had your stock brokerage go to bat for you on this one. But I am talking not from specific experience in this area. This is just what I would do. In summation, first, approach the manager of the brokerage office. Next, approach the MM firm. Finally, approach the exchange officials, or clearing agency. Have every correspondence made in the form of written letters that are sent through registered mail, even if the conversation was initially in verbal form. Since you lost a non-trivial amount of money, I think it would be worth your time and effort in pursuing this matter. Do not wait for time to go by on this matter. It may also be worthwhile to send copies of the correspondence to the SEC or investigative body of the exchange. Have this cced in an obvious way to some important person at the SEC when dealing with the brokerage and market making firms. Just my two cents. Bob Graham