What happened? Shares jumped over open bids at the close and sold 2500 shares below at .43 cents in the last minute of trading. Then filled on 5000 share order for .50 cents. By passed higher priced bids.
What causes a thing like that to happen? Nasty effect for sure on P/L Open $um.
We will probably never know. Doesn't leave one very happy does it?
Here's Quoted text of customer service Chat "Skipped Bid Order" - You will find it amazing, annoying, amusing, and unbelievable..
15:20 Sand Paints: My charts show there were open bids, one of mine at .50 for 3500 shares of GSAT, that the system jumped over and sold 2500 shares to someone at .43 cents in the last minute. That's not right.
15:21 Sand Paints: Also showing 250,000 shares sold AH. And GSAT is not traded AH's because it is unlisted. Something is wrong. My chart is still visible.
15:22 pespinosa: hi
15:22 pespinosa: one thing to note is that GSAT trades over the counter
15:22 pespinosa: that is not a listed stock that trades on national stock exchanges
15:23 pespinosa: the rules in the over the counter market (or the lack of rules in my opinion) are not the same as those that govern listed stocks
15:23 Sand Paints: I am aware of that, but why did it jump my open bid and sell someone fewer shares at a lower price... and why did it trade after hours on another transaction.?
15:23 pespinosa: in the OTC, since that is a non electronic negotiated marketplace, your order can be skipped. I know it is hard to believe, but that is why the otc market is so unrealiable at times
15:24 pespinosa: if two other specialists negotiated a price, since the market is non electronic there is a possiblity of your order being completely skipped
15:26 Sand Paints: Not only my order but several others were up for considerable time. And .43 a share was not even in the day's range until that order was filled in the last minute. This is wrong.
15:27 Sand Paints: Do I have to file a complaint with the SEC?
15:28 pespinosa: well, you can certainly do that but I hope you understand that this is the nature of the OTC marketplace
15:28 pespinosa: this would not occur if you were trading listed stocks
15:29 pespinosa: in the electronic market, there are more rules and no one can trade through your price without picking up your order along with it
15:30 Sand Paints: What sort of answer is that? There can not be any such "free play" where someone gets shares at a price that was never traded all day and at a price below several previous day
15:31 pespinosa: the otc market is a non electronic marketplace with almost no rules
15:32 pespinosa: when a listed stock gets into trouble with the SEC for example, let's say the company does not present the SEC with reports that are required from listed stocks, or if the stock falls below listing requirements, the SEC would ban that stock from being traded electronically and that stock would end up trading otc
15:32 pespinosa: to be honest I never trade OTC stocks for exactly this reason
15:32 Sand Paints: So someone can buy at the price that was available 4 days ago... Sell me some shares at last weeks prices.
15:32 pespinosa: I like there to be rules and regulations and an orderly market in terms of the products I trade. OTC is not like the electronic market
15:33 pespinosa: as unbelieveable as it sounds, yes it can potentially happen
15:34 Sand Paints: Thank you. I will file a complaint and whatever else is necessary to get better answers. This is "unbelieveable" as you say. Thank you.
15:35 pespinosa: you're welcome. buy please understand that this was not a TDA issue. it is the nature of the OTC market place
15:35 pespinosa: if anything else comes up simply let me know
And.... now I have a Screen Shot capture of the relevant trading screen showing the DAY bar chart for the last ten days, also Level Two Orders at the Close, and documenting the 250K block trade After Hours as well as showing the time and amount of the 2500 shares at .43 cents.
So we look like, my TD Ameritrade software shows us with a bogus -22.1 % drop Friday. No way.
Would post the image here, but that isn't possible on the Yahoo forums.
Anyone have any advice or also passed over? This order was to add shares, so I'm still good for Lift Off on February 5th with my previous shares. Can get some more Monday yet too, so it isn't the end of the world, just frustrating as Dante.