Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
Market maker pricing error ADVICE PLEASE
+ Reply to discussion
Options
John Roycroft
Posted: 27 December 2012 15:56:29(UTC)
#1

Joined: 10/12/2010(UTC)
Posts: 34

Thanks: 11 times
Was thanked: 16 time(s) in 11 post(s)
On 24/12 I sold my shares in XGLI for US237 as they had risen by 49% in one day.
On 27/12 I was called by my online stockbroker to say that the Market Maker had made an error and that the trade had to be reversed or completed at the correct price of US160.
I argued that I had purchased the shares in good faith and that the Market Maker should accept the loss as they had made the mistake.
I said that I would seek advice before giving permission to change the transaction which the person I was speaking to accepted. When I logged on I found that the trade had already been reversed. Where do I stand on this?
Back to top Quote
Roydo
Posted: 27 December 2012 19:32:42(UTC)
#2

Joined: 10/02/2012(UTC)
Posts: 90

Thanks: 2 times
Was thanked: 59 time(s) in 37 post(s)
Very annoying, but I would expect their small print covers mispricing, (bothways). Didnt a 49% rise on Christmas Eve seem a bit odd though?
Back to top Quote
John Roycroft
Posted: 28 December 2012 06:55:35(UTC)
#3

Joined: 10/12/2010(UTC)
Posts: 34

Thanks: 11 times
Was thanked: 16 time(s) in 11 post(s)
Thanks Roydo - I think you're probably right about the small print.
Yes the 49% rise did seem bizarre - my first thoughts were that it was a computing error. However, if a fund is offered at a specific price then it seems unreasonable that they are not obliged to accept transactions even if the price is an error.
In this case, 'seller beware' should apply perhaps.
Back to top Quote
+ Reply to discussion

Markets

Other markets