Many thanks Nightstalker for your explanation. I have often wondered, but haven't understood the detail of these practices by the professionals.
Two points to add to your excellent note:
it seems to me that the brokers or similar have software which is privy to the orders being placed, not to affect a particular transaction, but is activated immediately another person places an order or when the order is executed: many times I have placed an order when I would expect to be the only player at that price, but immediately another joins.
I think it is absurd that these small trades, sometimes just a few shares at a value less than would be our brokerage, are reported by the ASX and the press as 'last trade'; surely there should be a minimum, say equivalent to brokerage*10; the present system is very misleading.
I would think that ASIC or APRA should intervene in these practices by the direct-access professionals; we certainly can't expect the ASX to intervene, even if they should do so; that's another reason for removing the ASX from its regulatory role.
peterA
TOX Price at posting:
$2.40 Sentiment: LT Buy Disclosure: Held
