4

I offered 30,000 shares of stock for sale at .54 when the ask was quoted at 10,000 shares for sale at .62. My offer never became the ask that day. Therefore, the broker was telling the public that the lowest price one could by this stock for was .62 at 10,000 shares. This was a lie. I was willing to sell mine for less than the quote. It was not an all or none order. To make matters worse, at the end of the trading session, 10,000 shares were sold at a price higher than what I was asking. Is this fraud? How does my broker get away with this? Do I have a legitimate case? Thanks in advance.

  • When the ask was .62, what was the bid? If it was .54 or higher your order should have cleared. Also - this appears to be a legal question. – JTP - Apologise to Monica Nov 26 '13 at 23:41
  • Have same problem, I don't have AON. And the stock is continuously selling for higher than my limit sell price...WTF?? Is this HFT cutting in line? I'm ordering thru scottrade online....this has happened many times. Crap shoot if they sell. – user24537 Jan 8 '15 at 0:01
6

Many exchanges trade the same securities. An order may be posted to a secondary exchange, but if the National Best Bid and Offer data provider malfunctions, only those with data feeds from that exchange will see it.

Only the data provider for the primary exchange where a stock is listed provides the NBBO.

Missing orders are very common with the NBBO data providers. NASDAQ's order consolidator has had many failures over the past few years, and the data provider's top executive has recently resigned.

Brokers have no control over this system. A broker may be alerted to a malfunction by an accountholder, but a broker may only inform the relevant exchange and the relevant data provider.

2

It depends on the way you have directed the order and the execution agreement you have signed with your broker. In case of DMA (direct market access) you would direct your order to the specific exchange - and that exchange would post your offer, assuming you did not tag it as hidden. However, if you just gave your order to the broker (be it via telephone, email or even online), they may not have to display your order to the market or chose which exchange to sell it on. It will also depend where the stock is listed. For most US listed and OTC stocks, regulation NMS applies where your order should have been executed against if it went to the exchanges. Check your account opening docs and agreements, particulary the execution agreement. In there it will tell you how your order should be treated. In case where the broker stipulates that you have DMA or that they will direct your order to Lit markets (public exchanges and not market making firms and dark-pools) then you may have a case - you would need to request information to whcih exchange your broker sent the order to. In case that you gave them discretion on routing of your order - read the fine print. The answer lies there.

Regarding NBBO missing you quote as quantycuenta suggested above is also a possibility, however Reg NMS should take care of this. Do you have stock and date & time of your order?

-1

There are a few things you are missing here. These appear to be penny stocks or subpenny stocks. Buying these are easy.... selling is a total different ball game. Buying commissions are low and selling commissions are outrageous. Another thing you are missing in this order is... some trading platform may assume the "AON" sale. That is All Or None. There was an offer of 10k shares @ .63. The buyer only wanted 10k what was the broker to do with the other 20k? Did you inform the broker that partial sales where acceptable? You may want to contact your broker and explain this to them. The ALL OR NONE order has made plenty of investor a little unhappy, which seems to be your new learning experience for the day. Sorry, school of hard knocks is not always fun.

  • OP states that the offer was explicitly not all-or-none. – ChrisInEdmonton Dec 19 '13 at 17:30

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