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Trade dispute


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Trade dispute

  #11 (permalink)
 artemiso 
New York, NY
 
Experience: Beginner
Platform: Vanguard 401k
Broker: Yahoo Finance
Trading: Mutual funds
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marcopolo1 View Post
Need advice.

Few days ago, I was trading a future contract. Put sell order. Order was submitted but I never got fill acknowledgement.
I tried to cancel the trade few times in platform but got error. So, I was in limbo.
The trade was nicely positive first but I couldn't close it because not open in trading platform; the trade then went negative then kept going against me to badly negative and I still couldn't close it.

I called brokerage call support right away and waited more than 1 hour to be able to talk to someone. After few minutes, they "fixed" something and the trade was now live with a bad loss.

I called again and they offer a very very small compensation for trade (10% loss).

I'm going to dispute trade in writing, and thinking of filing complaint with FINRA.

I was wondering if anyone experienced this kind of issue before, and what they did?

Any recommendations or suggestions?

Glad to see your issue was resolved. Here's what you should do next time.

You should have an email exchange with your broker to get the actual FIX client order, exchange-assigned order ID, creation and execution time. They are required to have this by regulation. This allows you to confirm with CME GCC what happened to your trade.

If CQG gives you any of these fields directly, you should not have wasted time with your broker and should've quickly contacted CME GCC before reaching out to your broker, since the exchange has the final say on the state of your trade.

If your broker doesn't have a record or CME's record doesn't match your broker's, then you have a clearer evidence that they were negligent.

If their records match, then the issue lies with your broker's software vendor (CQG). In which case it could either be client-side (your desktop application malfunctioned as a result of a bug) or server-side (your broker's hosted CQG application had a bug). Then this depends on whether your broker or you have indemnity terms in your software license agreement(s). Often a software vendor will take no responsibility for damages incurred on your part, so it depends on the extent of damages that they're responsible for according to the contract. You can still sue them regardless of what the contract says, of course.

If the issue lies with your FCM/IB, you should direct your dispute to the NFA, not FINRA. If the issue lies with your software vendor and your broker refuses to back you up, you can try use the NFA to pressure your broker into taking more action against the software vendor.

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  #12 (permalink)
 
xplorer's Avatar
 xplorer 
London UK
Site Moderator
 
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phantomtrader View Post
It's a random event and I'm trading a live account. Don't have time during a live trade to make a video!

I too am trading a live account. I just press Record before I enter the trade.

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  #13 (permalink)
 
xplorer's Avatar
 xplorer 
London UK
Site Moderator
 
Experience: Beginner
Platform: CQG
Broker: S5
Trading: Futures
Posts: 5,970 since Sep 2015
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artemiso View Post
Glad to see your issue was resolved. Here's what you should do next time.

You should have an email exchange with your broker to get the actual FIX client order, exchange-assigned order ID, creation and execution time. They are required to have this by regulation. This allows you to confirm with CME GCC what happened to your trade.

If CQG gives you any of these fields directly, you should not have wasted time with your broker and should've quickly contacted CME GCC before reaching out to your broker, since the exchange has the final say on the state of your trade.

If your broker doesn't have a record or CME's record doesn't match your broker's, then you have a clearer evidence that they were negligent.

If their records match, then the issue lies with your broker's software vendor (CQG). In which case it could either be client-side (your desktop application malfunctioned as a result of a bug) or server-side (your broker's hosted CQG application had a bug). Then this depends on whether your broker or you have indemnity terms in your software license agreement(s). Often a software vendor will take no responsibility for damages incurred on your part, so it depends on the extent of damages that they're responsible for according to the contract. You can still sue them regardless of what the contract says, of course.

If the issue lies with your FCM/IB, you should direct your dispute to the NFA, not FINRA. If the issue lies with your software vendor and your broker refuses to back you up, you can try use the NFA to pressure your broker into taking more action against the software vendor.

Very useful, thanks artemiso.

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Last Updated on February 10, 2018


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