No - it was deliberateSee attached from ASXDear xxxxxxxxxx,Thank...

No - it was deliberate

See attached from ASX

Dear xxxxxxxxxx,

Thank you for your email.

Having reviewed the course of sales data for Eden Energy Limited (EDE)it appears the trades you are referring to, are the result of DMA (Direct Market Access) or algorithmic trading.

You may be aware that DMA trading allows a client to send orders directly onto a trading platform without human intervention. One form of DMA trading involves a strategy to match the volume weighted average price (VWAP) for a stock over a day. As a means of capturing the VWAP, a
single order might be split up into several smaller orders which are submitted periodically (every 3 minutes for example).

This type of DMA trading is normally unremarkable and has no impact on the price or volume of a stock. However, occasionally market observers may see small volume orders being submitted to a trading platform in a less liquid stock which result in small volume trades.

Surveillance monitors DMA trading and expects brokers to have in place appropriate mechanisms to ensure that such trading is not manipulative.
DMA trading is an increasingly popular means of trading, particularly when a participant seeks to track VWAP or 'slice and dice' an order for other purposes. Further details and articles regarding DMA trading can be found be searching under "DMA Trading" on the ASX website. Please
refer to the link below.

http://bureau.panopticsearch.com/search/search.cgi?query=DMA+Trading&col
lection=asx&form=simple&num_ranks=10

Please be advised that ASX surveillance has been notified of your concerns and will continue to monitor the trading in EDE.

I hope this is of some assistance to you and I appreciate you raising your concerns with ASX.

Kind Regards,

Mitchell Banks
Customer Service Officer
ASX Limited
Australian Securities Exchange
Exchange Centre
Level 1, 20 Bridge Street
Sydney NSW 2000
Phone: 131279
(61 2) 9338 0000
Fax: (61 2) 9227 0885
E-mail: [email protected]
http://www.asx.com.au

AND MY RESPONSE:

"Dear Mitchell

Thank you for your response

Yes I do understand how VWAP works.

Let us consider the case of EDE and let's assume that the previous 14 trades were not DMA. Perhaps you can tell me why you would consider this trade of $100, that drops the price of the stock by two-thirds, to not be manipulative.

If the average trading price has consistently been well above .20, and on the day was trading between .20 and .15, surely the DMA system would buy lots to increase the average price to its VWAP? Unless, of course, it is the traders intention to create panic selling down of this stock.

I await your reply"

In my view, DMA is b^))5h!t manipulation and should be banned - I will keep you informed.