well planned sell off, page-3

Hi 383hq.

For your information I have taken out the following
extracts from an update to the Senate Inquiry re the performance of ASIC the Reference is numbered 213. It goes a long way into what we are seeing with CDU trading.

“The Senate Enquiry is placed in a strong position in that it can observe for itself how effective the regulator is in dealing with the current systemic issues concerning all share market investors.
The algorithmic trading issues identified appear to be intimately associated with short selling, and suggest that the share market requires at least as much attention by the Senate Enquiry as that of the banking industry with an emphasis on ensuring that ASIC does the job entrusted to it. The problems identified have enormous implications for the integrity of Australian financial markets. They translate to billions of dollars unfairly removed from the market capitalizations of companies and poor returns for managed funds as shares are lent out to ensure short selling profits for hedge funds and sophisticated traders. The extent of trading issues and the vulnerability of superannuation investments and personal savings committed to the share market suggests that if the Senate Enquiry is unable to effectively address the problems, then perhaps a Royal Commission is required to put the financial markets back on a sustainable footing. “

“The current Senate submission update strikes a chord with Submission 232 by Dr Peter Brandson who has revealed how compromised the banking system is and how ineffective ASIC has been in guaranteeing the integrity of the system, and in protecting people from malpractice. The point was also made that it is the ‘criminals’ who tend to get favoured treatment at the expense and suffering of those who have been taken advantage of. It is a theme that also permeates many of the Senate Enquiry submissions published to date.”


"Research data suggests that the system of short selling is flawed on many levels, including regulators allowing:
? collusive trading to occur between ‘affiliates’ while short positions are established through back and forth trading without price impact;
? collusive trading that results in prices being forced lower to increase the likelihood that short positions will able to be exited profitably, and,
? collusive trading that enables short positions to be covered, again without fair price discovery.
The collusive trading that takes place refers to brokers interacting exclusively through their algorithms and being able to bypass all other orders as necessary. Algorithms provide a mechanism for shared trading agendas to be implemented with broker algorithms automatically taking the other side of manipulative trades. The collusive trading ensures that the market is managed in a way where transactions are directed from designated sellers to preferred buyers which amounts to price fixing as the trades are non-genuine. The interactions have been identified by an analysis of anomalous data trends that result from large numbers of spurious trades.”


"The research findings have been forwarded to ASIC and provide an additional opportunity for the Senate Enquiry Committee to observe how effective (or otherwise) the system of regulation actually is. Extensive research across 32 ASX companies reveals an ASX market that is substantially compromised with algorithms distributing trades in a manner that cannot be explained in terms other than:
? non-genuine buying and selling;
? the fixing and maintenance of artificial pricing levels; and
? collusion and possible cartel activity.”



I have made representations “Ad Nauseam" to ASIC , the NSW and Federal Police, Federal Members of both the upper and Lower house’s, in fact, any one who it was felt would start to take some action in having an investigation into a most serious matter which is having deleterious consequences on investors, both large and small.

Unfortunately ,the matter was not in the “bailiwick” of most parties and it was referred to ASIC, who appeared to take no action. When detailed submissions on the CUDeco matter were submitted, the format of response was as though it had been scripted by non holders, posting on the Hot Copper site.

cheers,

Max