size of jpr's discoveries, page-17

theburbs,

You might want to have a look at the London trading for JPRL today (monday).

On Friday some chunky trades 1x50K 3x25K, 1x12.5K & 1x5K all within the 11:52 to 12:40 time period, all but the 5K trade were done @ 45.5p

The offical spread then went from 44-46p to 45-47p yet the 13:14 trade of 15,659 shares was also done @45.5p.

I'm not sure all the earlier trades were buys.

If you have an account that lets you submit dummy trades then try it out. I have access to an account that gets you a quote and holds it for 15 secs in which time you can accept the quote or reject it. Obviously if you don't own stock then you can't see the sell side because you have none on the account to sell.

Anyway I did some of these dummy trades late on Friday before the LSE closed. The system wouldn't quote me a price for a trade of 10k or above on the buy side, It would have quoted me for 7,000 if I had entered that amount as that is the minimum deal size, I actually entered 5,000 shares and finally I got a quote of 47p. Normally on this account they try and deal slightly inside the official spread, so I would have expected the price to be like 46.8p or better.

On the sell side they were happy to quote me a price for a much larger block of shares and offered over the official 45p price.

So I suspect the MM are trying to fill a decent sized order, probably for an institution.

They basically don't want anyone dealing on the buyside, hence the minimum size and full price. They are trying to attract sellers without paying over the price that they've probably agreed with the buyer, ie 46p or just over. It's sort of called working the order.

Of course they don't want to take to long filling the order incase more news breaks and the price moves out of the profitable range for them.

Nowadays the price of trading is much less than it used to be, so if I had wanted 50k shares instead of getting them all in the one trade and only paying one commission of @ $15. I could annoy the MM by placing one minimum sized trade one after another until I got my 50K that way!!

Ok I would have had to have paid 7 commission's but I'd have the stock I wanted :) :) I might even have had to pay a little more pricewise for some of the blocks to, but I'd have the stock.

It also makes the stock look more active, which might attract interest from other PI's which again would hurt the MM's again if they too bought small parcels of stock to, especially in a stock like Jupiter where a large amount of stock is held by long term investors.

So I'll try and see if the same restrictions are in place when the market opens today and keep my eyes open for a large trade going through later in the day or tomorrow, as they are allowed to hide deals of a certain size for up to a set time!! (provided of course they've been able to complete the order by then.

Hopefully that will show you how the LSE works in a completely different manner.

Not the best BRR I've heard, poor questions.

LOTM