Scorpion, You have completely ignored the fact that your set of...

Scorpion,

You have completely ignored the fact that your set of data is missing a lot of July data. Why is that?

You draw conclusions from the fact that July is zero when the problem is that you are simply missing the data.

You still miss the point of T+3 and the broker accounts.

Every single T+3 buy trade spends some of its time in one of those broker accounts! I dont think that you have yet grasped that simple fact.

I see that you are NOT able to point to any flaw in my simple example from my previous post.

Here is the explanation for your supposed churn:

If Commsec clients on T+3 purchase 8 million CDU shares in the month, then 8 million will go ON the Commsec Nominees account and in the end 8 million will come off. As normally 3 days will separate the on and off the numbers wont match exactly in a given month because some of the off spills to the next month.



So with nothing special going on at all in the above example
8 million would go on and off that broker account. You look at the account and call it churning! You simply dont understand how the register gets updated.

Clearly you are not willing to talk to a broker or the share registry to get the simple explanation on how it works.

In the meantime, from a position of lack of knowledge you come up with silly stuff about churning.

That same Commsec Nominee account appears on every single company register and lo and behold, it has increased volumes on every register when trades get busy for those shares!

I get the impression that you simply dont want to know how the registry gets updated.

Its a pity that your lack of knowledge here allows for wrong information to get to your readers. Hopefully most of the readers will work it out for themselves by following the simple example through.

For the Commsec Nominees account to go zero at the end of a month, you need the situation of no Commsec clients being CDU buyers in the last 3 or 4 days of the month. On virtually every trading day a Commsec client will buy some CDU and it will therefore permanently hold some CDU just as it does for many other shares.

The reason why these broker accounts are there is that the sell side and buy side of the one transaction hit the registry 3 or so days apart. The sell side hits the registry first, but you cant take the shares off the sellers account without placing them On somewhere else. The somewhere else is the broker account. A few days later those same shares come off the broker account and go On the buyers account.

That timing difference of the sell and buy side is why those broker settlement accounts are needed. The registry must always balance to the correct total of shares on issue and that balance is achieved with those settlement accounts.

Most I am sure are now getting to understand this Nev. Dont get left behind!