@Bhannot wrong that they provide clients advice (well they...

@Bhan
not wrong that they provide clients advice (well they publish research which is used by institutional clients as I don't believe they have a wealth management business in Oz), but they would not be taking on any material risk themselves (most of the big investment banks don't do that, unless its relatively short term to cover a big block trade or do something like an IPO or equity issuance).

The fact that they have a large position as you rightly pointed out is more than likely a result of facilitating short positions for clients, but I think its a stretch to think that a large global player like that would 'manipulate' pricing.......their bread & butter is making commissions from trading, facilitating client trades (like these shorts) and then do issuances for corporates..........where there is manipulation is some of the smaller local brokers that don't necessarily have the barriers between 'research', client advisors and their own trading desks/funds.

Anyway, that's my 2c worth, although who knows what goes on.......especially when the big players do have algos that are attempting to make MtM profit off trading in a stock (as opposed to just earning a commission)