Banter and General Comments, page-9293

Thanks for pointing that out @tutor.

It's been a while since I’ve seen a broker report but I think it's potentially a very interesting event that you say that Instinet are back to accumulation.

Instinet are a Japanese trading house that virtually invented, and have since specialised in algorithmic trading (back in the early 80s?).

You’re right that they specialise in accumulation for dark pool clients.

It may be impossible right now to work out whether they are attempting to extricate a client from a short position as cheaply as possible, or buying for a long client.
However, Instinet definitely have history here at Galaxy, accumulating at strategic times.

I know that I have posted about them before so I googled a bit of HotCopper history.

They were very active here in 2016 and I remember noticing and posting about it.

The following post was from July 2016 and at that time they were doing 10s of thousands of small trades.

This thread takes me back…

https://hotcopper.com.au/threads/broker-data.2753177/page-62?post_id=17928747

(click the view thread to go back a page to see the actual report that I’m referencing)

This was July 2016 at the old 50c (current $2.50) where the share price consolidated for a while before taking off in a straight line to our ATH 88c (around $4.40)

I’m also pretty sure that I posted about them even earlier, when I noticed them before an earlier run, and I’ve also noticed and taken it as buy signal when I’ve seen them present in other stocks.

I would say that Instinet are more likely to work for bigger international banks, brokers or funds who do not want to announce their presence and want to accumulate invisibly, at arm’s length, and are happy to pay Instinet’s bot-masters to try to get the best price they can.

If I had to guess who they were working for last time it would have been Blackrock or New York Life

as they emerged out of that period with substantial holdings.