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I received a strange notification from IB

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ta2693

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The email is like this
This is to inform you that Interactive Brokers liquidated certain positions in
your account because there was insufficient equity in your account to satisfy
the maintenance margin requirements for your portfolio. The liquidating trades
were as follows:

Bought 1100.0 CSM on ASX at 3.43 AUD Tue Aug 14 22:10:52 EDT 2007
Bought 57333.0 HTE on ASX at .02 AUD Tue Aug 14 22:10:53 EDT 2007
Bought 12000.0 ACS on ASX at .16 AUD Tue Aug 14 22:10:54 EDT 2007
:mad:
I did not short sell anything, how come IB need to bought shares to liquidate my
position.
Besides, all my holding transfered from comsec are gone.
I do not know what is going on.
 
I would suggest you contact them immediately if you dont know whats going on, sure seems dodgy.
 
ta2693 said:
The email is like this
This is to inform you that Interactive Brokers liquidated certain positions in
your account because there was insufficient equity in your account to satisfy
the maintenance margin requirements for your portfolio. The liquidating trades
were as follows:

Bought 1100.0 CSM on ASX at 3.43 AUD Tue Aug 14 22:10:52 EDT 2007
Bought 57333.0 HTE on ASX at .02 AUD Tue Aug 14 22:10:53 EDT 2007
Bought 12000.0 ACS on ASX at .16 AUD Tue Aug 14 22:10:54 EDT 2007
:mad:
I did not short sell anything, how come IB need to bought shares to liquidate my
position.
Besides, all my holding transfered from comsec are gone.
I do not know what is going on.
Click to expand...

What did IB say when you contacted them?
 
professor_frink said:
What did IB say when you contacted them?
Click to expand...

I have not contacted them yet.
I am just back home from meeting a customer.
When I check the email and my IB account, that is what I see. Totally astonishing me, all my portfolio gone. Just some cash in my account. I don't know what IB did on my account.

I want to contact them but they are not working now.
 
ta2693 said:
I have not contacted them yet.
I am just back home from meeting a customer.
When I check the email and my IB account, that is what I see. totally astonishing me, all my portfolio gone. just some cash in my account. I don't know what IB did on my account.

I want to contact them. but they are not working now.
Click to expand...

try contacting them via the chat option under account management. You should be able to contact them that way pretty well all night. The Asian desk will be shut, but the European one should be open:)

edit: just had a look, and there shouldn't be any problems contacting them via chat right now ta.
 
They bought shares like ACS for me to liquidate my position.
That is very strange.
To justify this transaction, I have to short ACS 12000. But how come I can short shares like ACS on ASX? it is not even on IB short list.
 
That is the conversation i have with IB
china507: you bought shares like12000 ACS for me to liquidate my position. That is very strange. To justify this transaction, I have to short ACS 12000. But how come I can short shares like ACS on ASX? it is not even on IB short list
Luca F: yes I already explained to you that you didn't had enough fudns in order to maintain the positions
Luca F: therefore you got liquidated
china507: why did you buy shares for me ?
china507: if i do not have enough fund, why you bought shares for me ?
china507: i.e. why you change my money into shares because i do not have enough funds?
Luca F: we bought shares for you because we needed to reduce your margin requirements and this was the only way to do so
china507: bought shares to reduce my margin requirement?
Luca F: yes sir
china507: why? did i short sell shares?
Luca F: there was a short position of those shares in your account yes
china507: Shares like HTE ACS is not allowed to short on ASX
china507: do you know ?
china507: it is not on your short list either
china507: how come I can short HTE , acs?
china507: shares like HTE is not allowed to short sell on ASX
china507: it is not on your short sell list either
china507: do you agree?
Luca F: I agree they aren't availaible for short selling
Luca F: but you transferred the position in
Luca F: this is different
china507: what?
china507: I should not have a short position.
Luca F: I disagree you can transfer in a short position but you can't create one doing a short selling. What you don't understand ?
china507: how come i can get HTE a short postion? it is not allowed by ASX?
china507: How come I can transfer in a short postion?
china507: How come I can make a short position on HTE with other broker?
china507: and transfer HTE short position to you?
china507: it is just impossible to create HTE short position on ASX.
china507: according to the ASX trading rule, it is impossible to create short position on HTE.
china507: do you agree?
china507: if broker help people to create short position on HTE. the broker breaks the trading rule of asx.
Luca F: Sir this is what you should ask to your prevoius broker
Luca F: then you transferred this position over from them to us
Luca F: we don't allow to create any dhort position
Luca F: but we allow a transfer of short position on this product
Luca F: The answer to your question you need to go and get it form your prevous broker
china507: no broker will help people create short position on HTE.
china507: do you feel strange?
china507: do you think it maybe your system problem?
china507: My previous broker(commsec) did not create short position on HTE for me. that is for sure.
Luca F: Sir for this you need to contact F&B dept. I don't have enough information to see the whole situation
Luca F: please hold on while transferring
Luca F: In about 20 minutes
china507: at least , you feel it is strange ,do you?
china507: do i need to explain to them my situation from very beginning again?
 
right now, i have a very big position which is not at my will and lose money.
That is a big problem for me. HTE is just an example. I just do not understand what is going on. Do I need to report this issue to ASIC?
 
I got the whole story.

Mys shares was transferred from commsec to IB. It appears on my IB account and ok for trading.
I sold some of my shares. but after three days, commsec claimed my shares back for whatever reason.
The trading with IB already happen. without my shares on my IB account, I seems done short selling on HTE CSM and ACS. That lead to very high margin requirement which I did not know at that time. without enough money left in my account, IB end my position by buying shares for me. I end in big loss.

who can I blame ?
 
ta2693 said:
who can I blame ?
Click to expand...
If I were you, I'd want the issue itself resolved quickly. So, I'd be keeping a level head, stay calm and be very polite to all parties.

Only once it's resolved would I worry about placing blame. One thing's for certain, the people on the other end of the email/phone had nothing personally to do with the problem and playing the blame game isn't likely to illicit much help.
 
doctorj said:
If I were you, I'd want the issue itself resolved quickly. So, I'd be keeping a level head, stay calm and be very polite to all parties.

Only once it's resolved would I worry about placing blame. One thing's for certain, the people on the other end of the email/phone had nothing personally to do with the problem and playing the blame game isn't likely to illicit much help.
Click to expand...
I will do as an ASF member should do.
 
ComSec and Westpac did the same stuff up for me in the May correction last year but was all long positions.

Were there any unsettled trades? Thats what Westpac blamed for not transferring
 
bvbfan said:
ComSec and Westpac did the same stuff up for me in the May correction last year but was all long positions.

Were there any unsettled trades? Thats what Westpac blamed for not transferring
Click to expand...

Thank you for sharing your experience

but I am going to blame on IB for not executing my order as I want and breaks AFSL requirement.
I want IB to sell HTE for me. but because Commsec claim my shares back, what IB actually did is short sell HTE for me. This trade is against my willings.
HTE is not on IB's short sell list and it is illegal to short sell according to ASX trading rules. I cannot expect any illegal trading happened on my account. IB as a broker with AFSL has the responsibility to prevent any illegal trading happen rather than make illegal trading without my authorization .
Because the illegal tradings are not at my willing and out of my expectation. Any loss I suffered due to these illegal trading, I should get compensation from.



I am thinking what will happen if on my application form I chose to be a cash settlement only customer. if I am a cash settlement only customer, IB can not do the following buyback for me and have to leave my position open until the issue are solved.
I asked IB to transfer my shares for me after reading the transferring service disclosure statement.
IB did not fully disclose this particular transferring risk for me, it again breaks its AFSL requirement.
 
I heard another version of the story from commsec.
Commsec said they did not even deliver my shares to Interactive broker. not to mention claim it back.
I think it maybe true. because when the shares begin to appear on my IB account, it still exist on my commsec account and always there.

but if it is true, how to explain the shares appeared on my IB account?

Both of them are investigating this matter. I have very bad experience of my two and only two broker to broker shares transfer experience.
Is the broker to broker transfer a high risk area? I am preparing myself to go to ASIC now. Does anyone here have experience making complaint to ASIC?
 
ta2693 said:
I heard another version of the story from commsec.
Commsec said they did not even deliver my shares to Interactive broker. not to mention claim it back.
I think it maybe true. because when the shares begin to appear on my IB account, it still exist on my commsec account and always there.

but if it is true, how to explain the shares appeared on my IB account?

Both of them are investigating this matter. I have very bad experience of my two and only two broker to broker shares transfer experience.
Is the broker to broker transfer a high risk area? I am preparing myself to go to ASIC now. Does anyone here have experience making complaint to ASIC?
Click to expand...

Sorry to hear you are having dramas ta. Sounds like an overall crappy situation:(

If comsec still have your shares, have you still lost a lot of money? Wouldn't the losses on the short positions with IB be offset by gains in your holdings with comsec?
 
professor_frink said:
Sorry to hear you are having dramas ta. Sounds like an overall crappy situation:(

If comsec still have your shares, have you still lost a lot of money? Wouldn't the losses on the short positions with IB be offset by gains in your holdings with comsec?
Click to expand...

I do not have any position with IB now. because they end my position with margin call. and in yesterday's market the bid ask spread is huge.
e.g. I sold HTE on 0.020 but compelled to buy back at 0.024 by margin call trading automatically. I can not sell my HTE out at 0.024 again, but the best bid is 0.020.
That is where the loss i made. :mad:
 
ta2693 said:
I do not have any position with IB now. because they end my position with margin call. and in yesterday's market the bid ask spread is huge.
e.g. I sold HTE on 0.020 but compelled to buy back at 0.024 by margin call trading automatically. I can not sell my HTE out at 0.024 again, but the best bid is 0.020.
That is where the loss i made. :mad:
Click to expand...
sorry actually i have one short position with IB on ARV which is illegal to happen on ASX.
I do not know what should I do with it.
 
hello ta,

the whole problem stems from IB not being CHESS sponsored I would say.

when you transfer shares to IB, they might not get in contact with your previous broker.

I too have transfered shares from Westpac to IB and those shares are still open at Westpac.

I`m not selling them in IB but am selling them at Westpac, because I was not sure what will happen if I sell them with IB.

looks like I`m glad I didnt sell them with IB because I didn`t trust this situation.

might be good to draw Steve`s attention to this problem and I`m sure other people will get problems as well.
 
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