big buyer moving in, page-80

Hi Timeto,

Not sure if you got an answer re Cross-Trades (XT).

It refers to when a parcel of shares are bought and sold to clients within the same broker firm. The trade will still goe through on the market as usual, but will show as a cross-trade.

Many implications can be drawn from XTs, but the important thing to know is this. Lets say CVI is trading at 20c to 20.5c (later this week I hope!). If your broker has a client willing to sell to you at 20c, that broker can cross the shares to you without having to offer them to the general market, and wihtout you having to join the 20c que. Its a done deal.

If a group of people wanted to create a little low-risk low-cost action in a stock, and they all go through one broker, it might be possible to use this to their advantage, and I think thats why XTs were mentioned on this forum before.

BTW - A broker can find out what broker sold to what broker, but only 3 days after the trade (since the rule changed about 2 years ago).

Its interesting to note for example, that Patersons Securities in Perth have been a net seller of over 4M CVI in the last week. ComSec are a big net buyer as are Westpac.

S