500k wanted, page-13

Thanks for that article Buddy,

No dounbt you'll get the usual argument about these high frequency systems providing liquidity / market making and therefore stability - which imo is totally giving them the benefit of the doubt and ignoring the plunges we're seeing.

Also worth noting is the influence of the major cfd operators. Last time i looked they're offeriong longs and shorts on many ASX listed small caps like MPO. However if I were to buy a tranche of MPO today with a CFC provider, I could buy say 50 000 MPO longs and unless I opt to make it an on market trade, I more than likely will never see the order trade in the real market. IN these cases the cfd provider will decide whether they want to take the position outside the market (some don't even offer the on market option). From there, if they have a negative view of the market or the stock, they'll allow a given number of punters to accumulate longs or shorts and put their stops in 10 or 15% either side of the purchase level.

There could be 5 million MPO cfd longs at 48c for all we know with stops at say 44c. Come a bad day, the trader employed by the cfd provider gets to work and sells down the real market, dumping little parcels, maybe he needs to sell only 100 000 shares in the first hour, the moment the s p hits 44c ...the five million shares trigger and the cfd provider takes the 5 million times 4c if it is a guaranteed stop (which they charge $30 or $40 a trade for) and if not they can take the sp down through and sell out below 44c. Net effect cfd provider makes at least $200 k

It is highway robbery and all totally outside the regulators pervue.