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Disputation in trading: could it be reversed?

Discussion in 'Accounting, Tax & Legal' started by wdongli, 24th May, 2011.

  1. wdongli

    wdongli Well-Known Member

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    Perth
    To clarify the issues for help I just paste some words in one of my posts in different string:

    "Yesterday, I put a order for 1,995,000 of FUTDA at $0.005.

    FUTDA is symbol during FUT price consolidation: 10 for 1. Before this consolidation FUT bidding price was $0.001 and selling price was $0.002. I put the order since I believe if I could buy in at $0.005, and didn't expect I could buy them in.

    However just about 1 hour ago when I read and write for my mind updating, I got a confirmation Email that I have bought them in. I checked the price in the market and found FUTDA bidding price was at $0.011 around. That made me very happy.

    However just a few minutes ago, Comsec called me and said it was a mistake made by a broker and the transaction to buy "1,995,000 of FUTDA at $0.005" would be cancelled."

    For more, please click the link, http://www.invested.com.au/90/ftu-bought-1-995-000-ftuda-38552/

    Some of our mates here, I believe, are experts. If you have any advices and suggestion, please post here. Thanks in advance.
     
  2. Tropo

    Tropo Well-Known Member

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    No...it cannot be reversed.
    You couldn't buy this dog for 0.005 because the lowest price (officially), was 0.010.
    There are some problems with brokers from time to time (and computer systems as well).

    Below is an idea/example which may not apply to your particular case :

    "Financial services companies can make mistakes from time to time and the costs of these mistakes can be high. But when mistakes do occur, what recourse do customers have?
    One reader found himself £4,000 out of pocket thanks to an administrative error by his broker. After confirming the sale price on his shares, he instructed the broker to sell.
    But on receiving written confirmation of the sale he noticed that the price was much lower than the one he had been quoted. His broker said this was an error on its part and that the correct amount would be credited to his account.
    But the amount which went into his bank account in August was still the lower price.
    The customer is still waiting for a response from the firm and is unsure what to do now.
    If this situation does arise, the first recourse is to make a formal complaint to the company.
    Write “Formal Complaint” clearly at the top of the correspondence and outline what the organisation has done and how you would like them to rectify the situation.
    It is helpful to have a written record of any complaint you make, so if you speak to someone on the telephone make a note of who you spoke to and at what time.
    After five days the organisation should let you know it has received your complaint and after four weeks it should send you a final response or a holding response.
    At the end of eight weeks the firm must either give a final response or referral rights to the Financial Ombudsman Service. It is then up to the customer to take the case to the ombudsman if you are not satisfied with any redress offered"
    .
     
  3. wdongli

    wdongli Well-Known Member

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    Thanks Tropo again. A big jump in business or legal matters!
     
  4. Tropo

    Tropo Well-Known Member

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    "(wdongli: I really confused: the buying or selling transaction should be done electronically. If I put a buying order and no one to put a selling order into the system how could it happen? Could a seller reverse his order with genuine mistake? I thought the seller could not reverse the order.)"

    You have got no idea how often players change their minds (reversing orders, cancelling them etc).

    "(wdongli: yes it is bad to lose. As you know I lost all in IMI and I have to admit it was my mistake. Do we have the equal legal right and responsibility between us and the brokerage company? I guess it should be the same. So once a transaction is implemented no one should have the right to reverse unless some system errors without human factors cause the mistakes. Could I say that?)"

    In theory all works nicely.
    You cannot avoid mistakes from both sides (customer & broker), but do not expect a "fair play" in financial markets.

    "Could I get some legal helps for this kind of disputation? Any idea about the cost? Is it worthwhile in your views?)"

    I guess you can get some legal help if you feel it is necessary, but if you consider cost and time I would be careful.
    As I understand you did not lose money but an opportunity...
    If this is a case, personally I would take it as another lesson.
    Market always will be there waiting for your money.
    Ah yes...You can always change a broker/trading platform.
     
  5. wdongli

    wdongli Well-Known Member

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    Thank you very much, Tropo. Your advice and suggestion are very wise. I fully accept all of them now. The market is really powerful which forces us to think wisely and rationally, and at last economically, if we want to win for long term and get happiness for the market life.

    What lesson have I got now? Next time if we get any surprised lucks, sell first and don't leave any chance for reversing! LOL.
     
  6. wdongli

    wdongli Well-Known Member

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    ASX letter from Comsec: Very fair and acceptable!

    Very happy to get a call from Comsec to explain the reasons why my FUTDA buying transaction was reversed, and receive a ASX Letter from Comsec about it.

    Actually I was planning to shut down my trading account in Consec since I don't want to do any business with anyone I could not be fully trusted.

    But what Comsec has done give me more confidence on it. I will keep to trade with Comsec.

    The letter from ASX is attached, "Participant Letter FUT.pdf". It is fair to let more people to know how quickly Comsec responses to the disputation and properly does its job. Anyone if are responsible, deserves the respect.

    Thanks Comsec.

    Thanks Tropo.

    It is a happy ending!
     

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