cudeco(cdu) trading - representations, page-138

Hi CDU'ers,


Hereunder is the text of an e-mail that I have forwarded to Mr. Greg Medcraft, Chairman, Australian Securities and Investments Commission:-Your ref. CCU11\0338


"Dear Mr. Medcraft,

Further to my earlier correspondence the latest being on the 4th October, 2012, I wish to advise you that Chapter 6.5 of the" CuDeco Shareholder Research" Document has been completed.

The Chapter 6.5 has been headed "The Impact of Institutional Trading on the CuDeco Register". A copy of the research is attached for association with my previous submissions to you, and to assist you with your on-going investigations.

Irregularities revealed in CuDeco(CDU) Trading over the past 2 years 5 months in this latest research, give you the opportunity to investigate a number of concerning issues and to assess their impact on the wider market.

The issues include:-

1. The impact of the privileged use of trading algorithms about which little was known when their licensing was approved.

2. The use of HFT trading in terms of monopolizing the trading in a particular stock which is an aspect of trading completely overlooked by the current debate.

3. The excessive use and bland acceptance of Wash Trades.

4. The excessive use of Dark Pools for exchanges of shares, the reasons for which are obscure.

5. Manipulative abuses of the system of short selling including irregular reporting and the management of exposed positions off-market.

6. The inadequacies of a system that facilitates collusion, unfair dealings and cartel like levels of control over the market by sophisticated investors. And,

7. The shortfalls of a system that promotes itself as transparent, when the reality is that the majority of dealings are opaque and extemely difficult to reconcile.


This CuDeco research does provide a level of transparency about the trading taking place where the extent of problems is clearly evident.

It is apparent that the system has been interminably compromised by the introduction of trading innovations brought about by new technology, imaginative trading schemes and exotic new financial products; but without any comprehension of what negative impacts might accompany them and what measures might be needed to guarantee the integrity of the market.

It is incumbent that manipulation be eliminated by the responsible Authorities and integrity restored for the good of all.


Yours sincerely,

Maxw"




Referred for the information of CDU sharteholders concerned. Chapter 6.5 is on the Scribd CuDeco file.


cheers,

Max