I have been using EFX for approximately 8 months, mainly for limit orders (together with the followed TTO of course), and was happy with it.
On Thursday 8/16 17:25 EST, a impending limit order to sell NZDJPY @ about 88 was triggered (price was approximately 79 at the time):
My first order was implemented at 152.19 (now that is a nice fill ain't it )
My TTO was trigerred too of course and since the market was lower my position was closed following the TTO triggered and purchased in 79.43. I had been away from the computer in the moment.
Once I came back about 19:00 EST, I noticed I was left LONG 2500 NZDJPY @ 79.43.
That exact moment I received a phone call from an MB representative and he explained about the 152.19 trade being broken. Bummer, but no problem since it is clearly a bad quote (though EFX's repsonsibility as all other qoutes were probably taken off as part of the liquidity problem ). While not having a issue with the commerce being broken, I've got a BIG problem with being left at 79.43.
I had to contend with the representative for approximately 15 minutes I shouldn't be long nzdjpy and that he finally gave me an email address of the man who might be able to make decisions concerning refunds. He explained I will find a reply the next day (Friday). It afternoon.
I endured a tiny financial loss as I risk really tiny sums (but still 4 percent of my account!) , but the actual problem here is that a individual can't leave pending orders on EFX's platform --
One has a terrible execution, the trade is busted and he is left with an unprotected (TTO was triggered, you are either short or long but have NO STOP!) Place he did not mean to initiate UNLESS his pending order was implemented.
To re-itereate: limit order implemented (event A happens), TTO orders started (triggering event B), all's well so far. The original limit order is broken (A not valid anymore) your TTO order (event B ), trigerred CONDITIONALLY on event A) is still valid and you have an accidental open position, unprotected, in the market.
That is especially worrying since MB has server maintanence twice a day around 5pm and midnight EST and bandwidth is scarce at those times, prone to away market limit orders being actuated.
I'm confident you know a customer has everything to lose trading limit orders on EFX together with the danger of something similar to what occurring hanging over his head.
I expect to receive a refund of the little reduction incurred but I wonder if Justin can guarantee EFX clients that if a trade is broken, all subsequent trades triggered by the busted one will be considered invalid and the cash won/lost on them being returned (and explanations of the TTO being a legit commerce eventhough the original trade was busted could hold in court but should not satisfy any believing customer). I won't use limit orders on EFX till I get this kind of assurance.
I'm wondering if the trade would have been busted if I (the little customer) was around the other side of the trade (might have occurred if I used a market order to buy in the exact same time- would have been filled in 152.19)?
Did this kind of thing happen to anyone reading this? I'm interested in hearing your bad/great matches were treated...