Ann: Change in substantial holding , page-8

Thisit/Maxy!

I think the buys and sells in April/May 2012 at greatly discounted prices (ie $1.11 vs $3.11) is almost certainly due to Macquarie trading in the mini warrants. The discounted price is just the "net" amount the client is buying/selling the mini at. Macquarie are physically buying/selling the underlying FPO to hedge. They should have used the total price which is more correct but I presume their thinking would be what was the explicit cashflow for them, hence the net warrant figure. All this is a guess but feels about right.

Other observations - if you look at the substantial notice, there are a number of accounts/funds. Remember Macquarie does funds management AND is a broker. As a broker they issued BRU mini warrants + they are active stock facilitators for that hated species "the shorters". It looks like the vast majority of the 20m shares controlled by Macquarie is held in Macquarie Investments and only ~3m held under non investments - which makes me think this is where the mini warrants plus stock borrowing is situated.

The perception of the "millions" of trades is merely the reality of the ASX trading system. If Macquarie was a buyer/seller of 1million shares, they would probably have to effect this over a week and trade thru 10,000 individual trades - painful for everyone.

One final observation - its worth looking at the original SS notice by MQG on 13/9/11 it looks like all the securities (18.2m of them) was all held by investments - a similar amount to the SS notice yesterday.

Interesting stuff on a boring day don't you think!!