Problems with Fidelity Bond depth of book

[Spock]

I went to sell a 25 CDs at Fidelity (CUSIP 90355GDS2) this morning.
The screen popped up that there was no market for this CUSIP and that I would have to request a quote, which was not unexpected.

I get a quote of $98.783... significantly below the 3rd party price of $101.202. Again, not completely unexpected as the Fidelity 3rd party prices are rarely close to offers received.

After flip-flopping in my head for a few minutes, I accept the offer a few minutes before the offer was to expire (10:50ish AM my time).

Then the "new" experience starts. The order sits there for several minutes whereas in the past it's always executed immediately (there is a specific offer buy waiting on me to click "sell"). More time goes by and I'm wondering what's going on. So I start searching for my trade on the bond page and don't see it. BUT lo and behold I find 3 different offers to buy the CUSIP totaling 1100 bonds... The top offer is $98.926 for qty=250 with a min of 10... since I'm selling 25 (above the min for this offer) I'm expecting my trade to complete at $98.926 instead of 98.783.

My transaction is still sitting there. So I start looking at canceling it in order to go sell to the higher offer. While I'm double checking that I'm seeing things correctly... the request for bid sell transaction completes at the lower $98.783 (minus commission).

This makes no sense to me... I call Fidelity. I'm told the Depth of Book is not accurate and not updated. (There is a "As of 'date', 'timestamp'" in the top right of the screen with a refresh button... which certainly suggests its current).

Then I'm told: "What's your issue? You accepted an offer... done deal" (!!!) Yes I accepted an offer based on being told it's the only offer available, which it apparently wasn't.

Now Fidelity is trying to suggest that 3 different offers to buy a total of 1100 bonds and another offer to sell on a supposedly illiquid CD that required a request for bid all occurred after my transaction completed.

I'm only out $35.75. I'm just trying to understand how this works if I can't trust the Fidelity platform to give me the best matching transaction in a trade.

Am I being stupid? What I'm a missing? How do I go about understand this in order to no have this happen again (other than never selling CDs)?
I'm looking for an education here. Thanks.

 

[oldtimer]

CDs are not bonds. Bonds are not CDs.

 

[awsg]

What you are describing is typical. Fidelity does not show books for issues they don't have inventory for sale. The moment you accept the offer, they have the inventory and the book is shown. The dealer will offer your issue at slightly below the market price. They do get sold quickly most of the time and the dealer will pocket the differences.

For CD and agencies, Fidleity does not allow you to offer limit price to sell when they do not have inventory. For corporate bonds, however, you can sell at limit price you choose. No guarantee that it will get sold, but you can sell at a fair market price rather than the bids they offer you.

I went to sell a 25 CDs at Fidelity (CUSIP 90355GDS2) this morning.
The screen popped up that there was no market for this CUSIP and that I would have to request a quote, which was not unexpected.

I get a quote of $98.783... significantly below the 3rd party price of $101.202. Again, not completely unexpected as the Fidelity 3rd party prices are rarely close to offers received.

After flip-flopping in my head for a few minutes, I accept the offer a few minutes before the offer was to expire (10:50ish AM my time).

Then the "new" experience starts. The order sits there for several minutes whereas in the past it's always executed immediately (there is a specific offer buy waiting on me to click "sell"). More time goes by and I'm wondering what's going on. So I start searching for my trade on the bond page and don't see it. BUT lo and behold I find 3 different offers to buy the CUSIP totaling 1100 bonds... The top offer is $98.926 for qty=250 with a min of 10... since I'm selling 25 (above the min for this offer) I'm expecting my trade to complete at $98.926 instead of 98.783.

My transaction is still sitting there. So I start looking at canceling it in order to go sell to the higher offer. While I'm double checking that I'm seeing things correctly... the request for bid sell transaction completes at the lower $98.783 (minus commission).

This makes no sense to me... I call Fidelity. I'm told the Depth of Book is not accurate and not updated. (There is a "As of 'date', 'timestamp'" in the top right of the screen with a refresh button... which certainly suggests its current).

Then I'm told: "What's your issue? You accepted an offer... done deal" (!!!) Yes I accepted an offer based on being told it's the only offer available, which it apparently wasn't.

Now Fidelity is trying to suggest that 3 different offers to buy a total of 1100 bonds and another offer to sell on a supposedly illiquid CD that required a request for bid all occurred after my transaction completed.

I'm only out $35.75. I'm just trying to understand how this works if I can't trust the Fidelity platform to give me the best matching transaction in a trade.

Am I being stupid? What I'm a missing? How do I go about understand this in order to no have this happen again (other than never selling CDs)?
I'm looking for an education here. Thanks.

 

[foxfirev5]

I bought a 5 year CD ladder in 2018. CD's were paying .25-.5% more than treasuries. That premium was enough to compensate me for the illiquidity. Brokerage CD's are a pain to sell. On the other hand treasury bills and notes are quick and simple to trade with small spreads. For this reason I've only bought treasuries over the last 5 years.