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Re: Diggnun21 post# 12355

Thursday, 07/27/2017 9:34:08 PM

Thursday, July 27, 2017 9:34:08 PM

Post# of 19879
Not sure where your "quote" is coming from but trade reporting is not something market makers can actually "avoid"...current requirements for OTC TRF are 10 seconds.

https://www.finra.org/industry/trade-reporting-faq

Second the short I am referring to is not the "shorts" you are speaking of (which I assume is some entity "shorting" to make money on a price drop in the stock).

What I am talking about is how a MM executes a set of trades on behalf of a client wanting to sell a large block of stock they own. The t-trade you see (large, a few minutes after close, with some weird price point) is simply the market maker "buying" from their client's block position of stock that the MM sold short against throughout the day. It is in effect double counting that particular set of transactions since both legs are getting reported to the tape.

And one other item...contrary to popular belief, broker dealers DO NOT like to accumulate inventory of...or hold...penny stocks. It is too risky for them given the volatility and liquidity issues that can arise out of nowhere.

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