NorthWest Biotherapeutics Inc (NWBO)

[The Danish Dude]

With regard to covering of 6.5M shares last fortnight and 14-15M potentially covered shares thursday and friday.

Internalization ... or how Market Makers are able to cover in order not to let Share Price run.

Hi BARD

Short interest in NWBO went down with 6.500.000 shares last week. Available shares seems to be falling drastically, FINTEL numbers showing 14-15 millions thursday-friday last week, but trading volume is very low and share price is up friday 12%. If covering is going on, I assume trading volume would be higher. Can market makers in any way hide covering going on?

It is possible for market makers to hide covering activity to some extent. They can do this by using a technique called "internalization." When a market maker internalizes an order, they buy and sell the security to themselves, without ever exposing the order to the open market. This can help to keep the price of the security stable and avoid spooking other traders.

In the case of NWBO, it is possible that market makers are internalizing covering orders in order to keep the price of the stock from falling too sharply. This would be consistent with the fact that the short interest in NWBO has decreased, but the trading volume has remained low.

Explain the term "internalization" with regards to market makers stock trading?

Internalization is a trading practice where a market maker executes an order to buy or sell a security for its own account, rather than routing the order to an external market. This can be done for a number of reasons, such as to:

Improve price: Market makers may internalize orders if they believe they can get a better price for their client by executing the order themselves.

Reduce risk: Market makers may internalize orders to reduce their risk of exposure to market volatility.

Hide activity: Market makers may internalize orders to hide their trading activity from other market participants.

Internalization can be a controversial practice, as it can reduce transparency in the market. However, it can also be beneficial to investors, as it can improve price execution and reduce risk.

Here is an example of how internalization works:

A client places an order with a market maker to buy 100 shares of a stock.
The market maker checks its own inventory and finds that it has 50 shares of the stock available.

The market maker executes the order by buying the remaining 50 shares from the open market.

In this example, the market maker has internalized 50% of the order. This means that the order has not been exposed to the open market, and the market maker has been able to control the price at which the order was executed.

Internalization is a common practice among market makers, and it can be a significant factor in the way that orders are executed in the market.

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