big dump of 44mil shares are 52c, page-4

Hi E.
Theres a few pro's and con's with cross trades but its normal practice mate.
eg if you're trying to sell a large (and I mean large) parcel of shares, the buyer would almost expect a discount, its normal business practice mate in most things not only shares. In a way it helps us too I guess, can you imagine if a huge seller dumps say 40 million or more share on the market if he wants a quick sale, even with the good depth PNA has the share price could fall as much as 20 to 30% easy. If you feel either the seller or the buyer is at a disadvantage that there problem. cross trades do not affect the share price on the current days trading even tho the vol is added or recorded.
Most share fell yesterday, PNA a tad more I guess, because of amazing run to date. lets hope its short lived :-).

Here's a little more on it..

What Does Cross Trade Mean?
A practice where buy and sell orders for the same stock are offset without recording the trade on the exchange, which is outlawed on most major stock exchanges. This also occurs when a broker executes both a buy and a sell for the same security from one client account to another where both accounts are managed by the same portfolio manager. Investopedia explains Cross Trade
Typically, this is yet another way for a broker to rip you off. When the trade doesn't get recorded through the exchange, there is a good chance that one client didn't get the best price.

However, cross trades are permitted in very selective situations such as when both the buyer and the seller are clients of the same asset manager. The portfolio manager can effectively swap out a bond or other fixed income product from one client to another and eliminate the spreads on both the bid and ask side of the trade. The broker and manager must prove a fair market price for the transaction and record the trade as a cross for proper regulatory classification.

The key point is that the asset manager must be able to prove to the SEC that the trade was beneficial to both parties before executing a cross trade.

http://www.investopedia.com/terms/c/crosstrade.asp


Cheers
Mx.


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