# Major bank-backed broker blocks $5k "At Market" buy: Will disrupt orderly market



## asrey (4 July 2012)

I went to buy a stock via my Australian, bank-backed broker today online. (one of the big four banks)

I put in a buy "at market" trade expecting a purchase to set me back on a currently available/traded stock on ASX today by about AUD$5,000.

I get a call from my online broker after submitting the trade (which was then stuck in "processing" status) - "we can't submit your trade into the market - it may disrupt orderly trade as your "market buy" will cause the stock (currently traded under $0.10 per share, previous trading day's price $0.08) from rising 20-30%. Therefore we cant allow your buy-order to be processed (read "will be cancelled"). WTF?

This stock is under no "trading halt", my "buy at market" is for 50,000 units (going by market depth tools via my broker) at approximately under $0.10 per share, coming out around $5k.

I've never heard such bollocks in all my life - I've previously traded small caps on NASDAQ without issue, but this takes the cake!.

The broker/agent on the phone explained another major (big 4 backed trader) was fined a significant sum of money for allowing trades to "disrupt" orderly trading of stocks, so they were trying to avoid the same. So much for looking out for the customer!

Has anyone else encountered this? Is my broker breaking any ASX rules by disallowing a "normal" market-buy of a normal ASX listed stock (not subject to any special contditions eg: trading halt etc) ???? Surely the broker/agent is disrupting "normal market" process through blocking trades like mine? Gives a new meaning to "Market maker"

I've lodged a complaint with the agent/broker, but will hear back from them tomorrow. They blocked my "market buy" trade 2x today before market close. Needless to say, I still do not own any stock. 
Just a further hyperthetical, if the stock jumped by a factor of 1000x up on Friday, will I have a case to sue/file law suit for losses given they blocked my trade at least 2-3 times today?

Appreciated responses/other experiences thanks!


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## Boggo (4 July 2012)

*Re: Major bank-backed broker blocks $5k trade "At Market" buy. Will disrupt orderly m*

I have run into this situation when trading warrants. If there hasn't been any trades for a while on a derivative then my selling can cause a 20 or 30% (if I am lucky) change in price. The sell order will be rejected and I will have to ring the broker for an override. Not sure what the trigger level is but it exists and can save your ar$e with risky at market orders or typing errors.

Its in here some where I think
http://www.asxgroup.com.au/asx-operating-rules-guidance-notes-and-waivers.htm


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## pixel (5 July 2012)

seems it's an ASX rule that applies to all onliners.
They're concerned that online traders can manipulate the market - especially of small stocks - like the Big Boyz can with their algorithms and bots. Can't have that...
For the same reason, there is no longer an "at market" order. You'll have to set a limit, and that needs to be close enough to recent trading so as to avoid an entire an entire side of m/depth to be taken out.


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## burglar (5 July 2012)

asrey said:


> ...
> Appreciated responses/other experiences thanks!




I persisted and bought mine before close. 

Cost me an afternoon of my life!


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## tinhat (5 July 2012)

burglar said:


> I persisted and bought mine before close.
> 
> Cost me an afternoon of my life!




Boy this stock market caper is hard work eh?


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## skyQuake (5 July 2012)

Pushing anything 10-20% is frowned on. What the point buying $5k of something if its so illiquid anyway


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## Purple XS2 (5 July 2012)

burglar said:


> I persisted and bought mine before close.
> Cost me an afternoon of my life!




I've has similar experiences (in my case, with Comsec). If I have made up my mind to persevere, it _always_ takes about 15-20 minutes on the phone/phone queue, and the 2nd person I speak to (having asked for the call-centre supervisor) contacts the somebodies, whoever they are, and I get my trade.

So it's a speed bump, not an all-out roadblock. Just too bad if the parcel you wanted to trade loses a race to someone else.

HTH


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## burglar (5 July 2012)

tinhat said:


> Boy this stock market caper is hard work eh?




I sent an email to complain. He replies that I am trying to manipulate the market!!

When I picked myself up of the floor, I zinged back in with "I'm a share trader! That's my job!!"


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## tech/a (6 July 2012)

burglar said:


> I sent an email to complain. He replies that I am trying to manipulate the market!!
> 
> When I picked myself up of the floor, I zinged back in with "I'm a share trader! That's my job!!"




Fun hasnt even started
Now you have to get out at
Sometime.


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## burglar (7 July 2012)

tech/a said:


> Fun hasnt even started
> Now you have to get out at
> Sometime.




Yes, ... I have to calculate fair value yet! 

And pick an afternoon with no social engagements!


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