There is the prayer by market makers that the S1 will never be approved - ShareHolders firmly believe its coming. The next prayer KATX closes - again Ken making sure its not in the future!!
Why are the MM's on their knees - they must have divi shares to give out!!
Market Makers trading Of KATX during 2011's Divi Date area
******************Sept********OCT********NOV******DEC
NITE ----------16 mill----21.4 mill---8.3 mill---7.5 mill
Knight Capital
AUTO-------------9.2 mill---6 mill---4.7 mill---4.7 mill
Automated Trading
PUMA-----------159 thous--4.4 mill---zero--105 thous
Puma Capital
UBSS------------2.3 mill-3.9 mill--800 thous-900 thous
UBS Securities
ETMM-----------5 mill--1.8 mill----2.3 mill----2.8 mill
G1Execution
HDSN-----------10 thous-130 thous-unknown-unknown
Rodman/Renshaw
LAMP--------190 thous-104 thous--unknown--unknown
Lampost Capital
MAXM--------zero-------72 thous--zero------5 thous
MaximGroup
CSTI---------3 mill------3.2 mill---unknown--unknown
Canaccord
LAFC---------zero-------5 thous--unknown--unknown
R.F.Lafferty
So which MM's most at risk - possibly needing Millions/ tens of Millions of BVIG shares:
Knight Capital, Automated Trading, Puma Capital, UBS Securities, G1Execution
How can they try to get around this - try to use fail to delivers for shares sold last year!!!
Some shareHolders may have IOU shares - for sales made before Dec21 2011
Funny KATX traded 60 Million shares Jan - March 2012
Yet within 2 weeks of the S1 being introduced on April 13 with the Dec21 2011 Divi-Spin-off
KATX traded 40 million shares. Could MM's have covered the 25 - 50 million vapor shares I think were out there? Even if they covered the vapor shares (at a profit I must say) it does NOT eliminate their need for BVIG - Divi shares.
So again they MM's must use EVERY RESOURCE the have to close the Kat Companies.
Do MM's have resources - Almost unlimited dollars, voices, attorneys, BUT WILL THEY SUCEED?
NO this time they are caught flat footed, they were in the wrong and they with Authorities know it!
Chairman Mary L. Schapiro remarks:
We now have in place rules banning naked access and requiring rigorous pre-trade risk controls designed to help mitigate disruptive trading at the source. (sounds like KATX issues) (MM's in serious trouble I see nothing that will help them with their shorting of KATX) No sympathy!!!
But perhaps the strongest message from the Knight Capital episode is that the party committing an error may very well end up bearing a massive financialloss. That, more than anything, sends a wake-up call to the entire industry.
Will KATX be a wake up call to MM's trading in the pinks? YOU CAN BET YOUR KITTY
AI
