I was just reading over the ideas behind the price adjustment rule:
http://www.nfa.futures.org/news/PDF/...Adj_112408.pdf
It seems to me that if this goes through, and say you have some money sitting in Oanda and their system goes very wonkey, then you could basically lose your entire acct as Oanda goes belly up because it can't adjust executed orders after the fact.
Am I missing something here? The recommendations state:
"For pricing errors that result from the failure of the FDM’s own system, the FDM should clearly bear that burden."
Is that really realistic? This is going to increase transaction fees immeasurably and widen spreads for bucketshops to be properly compensated for their risk.
I would rather that Oanda just try to untangle all of the orders and adjust things so as to spread the pain as much as possible in the most fairest way possible (which they'll be highly motivated to do in order to rescue their reputation).
http://www.nfa.futures.org/news/PDF/...Adj_112408.pdf
It seems to me that if this goes through, and say you have some money sitting in Oanda and their system goes very wonkey, then you could basically lose your entire acct as Oanda goes belly up because it can't adjust executed orders after the fact.
Am I missing something here? The recommendations state:
"For pricing errors that result from the failure of the FDM’s own system, the FDM should clearly bear that burden."
Is that really realistic? This is going to increase transaction fees immeasurably and widen spreads for bucketshops to be properly compensated for their risk.
I would rather that Oanda just try to untangle all of the orders and adjust things so as to spread the pain as much as possible in the most fairest way possible (which they'll be highly motivated to do in order to rescue their reputation).