This may be of interest to you all. I wrote this back in 2019 on how 2 Market makers play in this venue. Now they are #1and 2 on the ask. Notice Nite well below on the ask and the top on the bid, the 2 primary players are CDEL and CSTI on the ask.
MARKET MAKER - CDEL
I wrote this about CDEL 2019
Things have drastically changed with respect to CDEL over the last 3-5 years.
I know CDEL and what they consist within the pennyarcade and the overall trading sessions.
CDEL is a very large institution that comprises of many facets. First and foremost, they have the largest electronic trading platforms that is larger than Nasdaq.
They control over 35% of the volume that is traded through their systems and why you see them always ping ponging along with NITE.
Their only competition in handle large volume trades is NITE. When some of you came back and mentioned they are retail and doesn't do dilution or convertible/toxic debt financing is not accurate. They are one of the largest purveyors of shorting, conversion on convertible notes and yes Toxic Debt instruments. Not to mention that options trading is their bread and butter, and they are the largest in the world in this venue.
Second, CDEL runs one of the most successful global hedge funds and is very large in institutional buying and selling that far exceeds general retail outside of their electronic volume handling.
Someone mentioned about the 5th decimal yesterday, that there were some trades going through on the 5th decimal. That folk is institutional buying, not retail!! And it was CDEL that handled that part. Of course, it may also be trading among themselves to handle so called mask trades, which we see a lot of. This is simply a share amount like CDEL does a lot and notes only a 5,000-share count but seems never to leave.
CDEL was in front of all the trades. CDEL and most of their business is institutional. When some of you see CDEL who executed, is only because their Electronic Trading platform got routed, but their retail is for mostly their clients, but dwarfs compared to institutional.
This MM CSTI, is the problem with this shorting.
Also, let me mention that CSTI who is the second player along with NITE and is a European MM out of the UK and is allowed to short pennystocks. In the states where shorting pennystocks isn't allowed is where this MM (CSTI)is running interference for NITE.
However, CSTI isn't really playing in this sandbox, but that will change once we get that catalyst
Most of the popular penny stock MM route through NITE because they are quick to execute most orders, but CDEL is very much in this venue and competes with NITE
Each market maker has its own complex algorithm that tries to make trades and CDEL is considered to be the world's finest.
Many times, they do this by shorting the ask and then covering on the bid. It is here with respect to CDEL, CSTI and NITE bounce back and forth and what we have been witnessing in the last many sessions.
Sometimes when a stock is running and you place an order on the ask and you don’t get filled, it is actually the market maker taking shares on the ask.
Then they move up the bid and again is where CDEL shows up and NITE trails. Then on the ask and tries to bait traders into hitting the ask again to sell the shares that they just bought. This happened a lot and resulted in a deep slide and took out the emotional holders of which, I believe were not the Level II traders, but saw the quote and WOW!! panicked.
You will also see MM’s shorting a stock as it runs up because they know that it will eventually come down. Think of it this way. If they are able to short a stock at .17 and it runs to .19, you will hear people on the forums, or a market maker is short.
In reality, it really won’t matter because naked or shorting really isn’t enforced in Europe and Canada where it is legal and any short will eventually be able to cover, if then they just keeping shorting more. Here is where I believe CDEL played and accommodated emotional traders into selling.
So far, every indication that the share structure hasn't changed, and the O/S shares the float is in strong hands appears CDEL is a major buyer at this time.
The problem we have here is CDEL is playing counterweight.
Have a good day
varok
