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PIBS - dealing prices and sizes

Gilts, bonds, and interest-bearing shares
Tara
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PIBS - dealing prices and sizes

#157549

Postby Tara » August 6th, 2018, 5:42 pm

I have been following the price of various PIBS in the last few weeks with Interactive Investor. Up until the last few days there has been no confusion at all in the dealing prices and sizes. When I made a preview trade of Skipton 12.875% (SKIP) for example, when I tried to buy 1,000 units the preview trade showed “buying 1,000 at £2.10” at a total cost of £2,100.

In the last few days however whenever I make a preview trade to buy 1,000 SKIP, the preview trade shows “buying 1,000 at £210” at a total cost of £210,000 ! The same thing is happening with other PIBS such as Coventry.

I understand that there is a minimum buying size of 1,000 units with PIBS but this does not seem to make any sense at all. The price of the PIBS seems to have just changed from £2.10 to £210. A multiple of 100.

Does anyone know if anything has changed recently in the dealing prices or sizes of PIBS such as Skipton ? Is the correct price still £2.10 with a minimum buying size of 1,000 ?

I am assuming that this is just an error with the prices being displayed by Interactive Investor. And needless to say I did not buy at £210 when the correct price was £2.10

But if I had by chance pressed “buy” in error, would I have been responsible for the “loss” or would the broker or market maker have reimbursed me for the loss ?

GoSeigen
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Re: PIBS - dealing prices and sizes

#157563

Postby GoSeigen » August 6th, 2018, 7:18 pm

Tara wrote:I have been following the price of various PIBS in the last few weeks with Interactive Investor. Up until the last few days there has been no confusion at all in the dealing prices and sizes. When I made a preview trade of Skipton 12.875% (SKIP) for example, when I tried to buy 1,000 units the preview trade showed “buying 1,000 at £2.10” at a total cost of £2,100.

In the last few days however whenever I make a preview trade to buy 1,000 SKIP, the preview trade shows “buying 1,000 at £210” at a total cost of £210,000 ! The same thing is happening with other PIBS such as Coventry.

I understand that there is a minimum buying size of 1,000 units with PIBS but this does not seem to make any sense at all. The price of the PIBS seems to have just changed from £2.10 to £210. A multiple of 100.

Does anyone know if anything has changed recently in the dealing prices or sizes of PIBS such as Skipton ? Is the correct price still £2.10 with a minimum buying size of 1,000 ?

I am assuming that this is just an error with the prices being displayed by Interactive Investor. And needless to say I did not buy at £210 when the correct price was £2.10

But if I had by chance pressed “buy” in error, would I have been responsible for the “loss” or would the broker or market maker have reimbursed me for the loss ?


You don't say which broker you used. You first port of call is to the broker to ask them what is going on. It's close to certain that nothing has happened to the security itself. If a clear error is made in the pricing of a trade the order will be reversed without any loss to either party. (They would be back in the position they were before the trade.) Normally your counterparty would notice the error, especially if it's in your favour, but you'd be well advised to let your broker know immediately you spot such an error. Unnecessary delay would be viewed very dimly, especially if the error is not huge.

GS

Tara
Posts: 20
Joined: June 13th, 2018, 8:30 pm
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Re: PIBS - dealing prices and sizes

#157567

Postby Tara » August 6th, 2018, 7:45 pm

GoSeigen wrote:
Tara wrote:I have been following the price of various PIBS in the last few weeks with Interactive Investor. Up until the last few days there has been no confusion at all in the dealing prices and sizes. When I made a preview trade of Skipton 12.875% (SKIP) for example, when I tried to buy 1,000 units the preview trade showed “buying 1,000 at £2.10” at a total cost of £2,100.

In the last few days however whenever I make a preview trade to buy 1,000 SKIP, the preview trade shows “buying 1,000 at £210” at a total cost of £210,000 ! The same thing is happening with other PIBS such as Coventry.

I understand that there is a minimum buying size of 1,000 units with PIBS but this does not seem to make any sense at all. The price of the PIBS seems to have just changed from £2.10 to £210. A multiple of 100.

Does anyone know if anything has changed recently in the dealing prices or sizes of PIBS such as Skipton ? Is the correct price still £2.10 with a minimum buying size of 1,000 ?

I am assuming that this is just an error with the prices being displayed by Interactive Investor. And needless to say I did not buy at £210 when the correct price was £2.10

But if I had by chance pressed “buy” in error, would I have been responsible for the “loss” or would the broker or market maker have reimbursed me for the loss ?


You don't say which broker you used. You first port of call is to the broker to ask them what is going on. It's close to certain that nothing has happened to the security itself. If a clear error is made in the pricing of a trade the order will be reversed without any loss to either party. (They would be back in the position they were before the trade.) Normally your counterparty would notice the error, especially if it's in your favour, but you'd be well advised to let your broker know immediately you spot such an error. Unnecessary delay would be viewed very dimly, especially if the error is not huge.

GS


It is Interactive Investor.

What buying prices are others seeing with their broker for Skipton 12.875% ? I assume it is about £2.10 ?

Has anyone else seen these PIBS such as Skipton and Coventry being sold at a price over £200 or is it just something that is happening with Interactive Investor ?

Wozzitworthit
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Re: PIBS - dealing prices and sizes

#157572

Postby Wozzitworthit » August 6th, 2018, 8:46 pm

My wife held £3000 nominal of these a while back

When they were purchased she had them in certificated form and the certificate show them as being 3 shares each of £1000 nominal

The contract note for buyingthem said 3,000 shares

The twice yearly dividend slips said 3 shares

When sold the contract note said 3,000 shares


Only way to be sure when you want to trade is to do what others suggest - talk to your broker !

Woz

Tara
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Joined: June 13th, 2018, 8:30 pm
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Re: PIBS - dealing prices and sizes

#157581

Postby Tara » August 6th, 2018, 10:00 pm

That at least makes some sense because it is a multiple of 1,000.

If the buying price for each share had been £2,100 and I had received 1 share, then it would have been the equivalent of 1,000 shares at £2.10.

The strange thing is that the buying price for each share was £210.

I will certainly contact the broker before I decide to buy anything.


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