Trade cancellation notice

[Tams 20]

This is going to be funny...

 

from Interactivebrikers:

 

To all traders:

Thu May 6 19:59:41 2010 EST

 

TRADE CANCELLATION NOTICE

 

IB has received notice from each of the NASDAQ, NYSE ARCA, BATS, DIRECT EDGE, ISE and NATIONAL STOCK EXCHANGE of their intent to cancel all trades executed between 14:40:00 and 15:00:00 which were executed at a price greater or less that 60% away from the consolidated last print in that security at 14:40:00 or prior. Each has also provided notification that this decision cannot be appealed. At this point we are awaiting information from these exchanges, as well as any other exchanges which may later provide notice of a similar decision, as to which stocks are affected and the break points at which the cancellations will take place.

 

Once this information has been determined, IB will act to process any resultant position and cash changes to your account and will provide notification of this action via email and TWS bulletin. As such changes may adversely affect account equity and/or margin compliance, account holders are advised to monitor their accounts and manage their risk accordingly. Additional information will be posted as received to the System Status page which may be located by typing the keyword 'System Status' into the IB website search engine.

[AgeKay 10]

Wow, what happened during that time? Could some one post maybe a chart?

[brownsfan019 17]

Wow, what happened during that time? Could some one post maybe a chart?

 

If you don't know what happened, then you must be living in cave w/o internet access.

 

Just pull up a chart and take a look.

[Tams 20]

more info from Interactivebrokers

 

To all traders:

Fri May 7 10:03:36 2010 EST

 

UPDATE TO TRADE CANCELLATION NOTICE

 

As previously noted, IB has received notice from the venues listed below of their intent to cancel all stock trades executed yesterday between 14:40:00 and 15:00:00 which were executed at a price greater or less that 60% away from the consolidated last print in that security at 14:40:00 or prior. Each has also provided notification that this decision cannot be appealed. At this point we have processed and reflected any cancellations which have been submitted for clearing; however, based upon the limited information received thus far, we anticipate receiving additional cancellation requests today. Once received, these trade cancellations will be posted to accounts and we will make every effort to notify impacted account holders in a timely manner via TWS bulletin and email.

 

As such changes may adversely affect account equity and/or margin compliance, account holders are advised to monitor their accounts and manage their risk accordingly.

 

NASDAQ

NYSE ARCA

BATS

DIRECT EDGE

ISE

NATIONAL STOCK EXCHANGE

BTRADE

CBOE

CHX

LAVA

LIQUIDNET

NITE

TRACK ECN

EDGA

[diablo272 10]

Is there a reason why they've decided to cancel all trades for that period? Is it only people with IB, or ANYONE who did business on those exchanges?

[Tams 20]

Is there a reason why they've decided to cancel all trades for that period? Is it only people with IB, or ANYONE who did business on those exchanges?

 

they are NOT cancelling ALL trades... only specific trades during that period.

 

All trades in those exchanges are affected.

[diablo272 10]

they are NOT cancelling ALL trades... only specific trades during that period.

 

All trades in those exchanges are affected.

 

I see I read your original post wrong. Thanks for the info. Has anyone seen anything like this happen before, on this large of a scale? I'm not talking about the price action, just the cancellation of trades. I'm not experienced enough to have seen anything like this before.

[diablo272 10]

Actually, having read more on this subject throughout the day today, I don't quite understand this part

IB has received notice from each of the NASDAQ, NYSE ARCA, BATS, DIRECT EDGE, ISE and NATIONAL STOCK EXCHANGE of their intent to cancel all trades executed between 14:40:00 and 15:00:00 which were executed at a price greater or less that 60% away from the consolidated last print in that security at 14:40:00 or prior.

If they are canceling trades that occurred at greater than OR less than 60% away from the price at 14:40, wouldn't that mean the cancellation of ALL trades? This part doesn't match up with what I've read elsewhere about this. Basically what I've read is that trades have only been canceled if they were greater than 60% away from the price at 14:40.

 

EDIT: Nevermind...I get it now.

Edited May 7, 2010 by diablo272

[BlowFish 10]

I see I read your original post wrong. Thanks for the info. Has anyone seen anything like this happen before, on this large of a scale? I'm not talking about the price action, just the cancellation of trades. I'm not experienced enough to have seen anything like this before.

 

Yeah it happens now and then. I thought limits (as in lock limit up/down) where meant to protect against this sort of thing. Guess I need to get up to date on what the situation is there <blush>.