Interesting. I think I am starting to smell the rat in these odd market wide trades I have seen on stocks that are not available for shorting.
"[Synthetic] Market makers typically offer more securities to trade in fact, some financial products such as sector CFDs are only offered on the market maker model"
"Synthetic markets" hey, sounds alot like the synthetic CDS market that was created and destroyed AIG after some major banks talked them into insuring that synthetic market and subsequently told AIG that the market they had convinced them to insure was doomed, which caused the insurance to cease, the market to implode and helped those same major banks to clean up billions in the process and they systematically shorted and destroyed the subprime markets ergo the world economy....
And the added risk that the synthetic market maker knows all underlying positions and stops system wide and can probably be used against the client by the provider.
