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Date: 1999-02-06

E-Trade: Wenn Broker weinen


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Freitag war dritte Tag in Serie, an dem das Handelssystem
der Online-Brokerfirma E-Trade in die Knie ging. Erboste
Kunden blieben auf ihren Aktien sitzen, das Servicetelefon
funktionierte so gut wie hierzulande die Telefonauskunft der
Post. Der Kongress hat mit Untersuchungen begonnen, ob
im elektronischen Börsenhandel das Wort
"Konsumentenschutz" eine unbekannte Grösse ist


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Kora McNaughton
February 5, 1999, 2:40 p.m. PT
...
E*Trade believed it had fixed the problem by 1 p.m. ET on
Wednesday, but at 12:20 p.m. today, the trading function
was again inaccessible to users. The service went back up
around 12:50 p.m.

Today's outage was an aftershock of the malfunction that
affected the site on Wednesday and Thursday, the result of a
software change gone awry, the company said. "We're
monitoring it very, very closely, and we were able to resolve it
fairly quickly," said Judy Balint, E*Trade's president and chief
operating officer.

Shares of E*Trade fell with stocks of similar companies as
the Nasdaq dropped more than 35 points.
...

Balint said today's interruption did not have a great impact on
user volume, which is usually heavy in the morning but
lightens up around lunchtime. E*Trade executed more than
300,000 trades this week, compared with an average volume
of 200,000 per week last quarter, she said.

But some who were unable to get through to their E*Trade
accounts said they aren't willing to take any more chances.
Mike Lydon of Mountain View, California, said his emails to a
special customer service address had gone unanswered for 2
days. "I opened a Schwab account yesterday and it's
working great so far," Lydon said. "It might cost a little more
to trade but it's worth it when you have your money on the
line." Later, Lydon called E*Trade to close his account
altogether, only to be asked to stay on hold for at least 30
minutes.
...
This was the third day of problems on E*Trade, the third
largest online broker with more than 676,000 active accounts.
On Wednesday and Thursday, a software upgrade that
malfunctioned caused the brokerage's trading capabilities to
go dead for a period of time, the company said. Service was
restored to most account holders by the end of the trading
session on Thursday.
...

But for some account holders, the reason for the service
interruption was irrelevant. "I am done with E*Trade now. I will
shop around for a better broker even if it is more expensive,"
said Rauf Adil, who trades heavily in Internet stocks.

Regulators are also taking a closer look at online trading. The
New York attorney general has begun an investigation of the
industry after receiving "dozens of complaints" in the past
month from consumers about delays in processing trades
and Web site crashes.

The New York State Law Department has sent letters to
several online brokerages asking that they provide
documents, reports, and other information regarding their
services. The goal is to develop safety precautions to protect
investors, who have complained about money lost because of
poor service.
.....
E*Trade has is considering whether to compensate account
holders for delayed or missed trades. "We try very hard to
take a look at it on a customer by customer basis," said
Balint. "We believe in doing the right thing by our
customers."

Full text
http://www.news.com/News/Item/0%2C4%2C31958%2C00.html?dd.ne.tx.ts2.0205

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edited by Harkank
published on: 1999-02-06
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