KCG Holdings (KCG)

[Gileon7]

Simple, MMs buy shares, then they have an incentive to get the pps to go up. That can be helped out by buying small quantities at higher prices. The same goes the other way, they short shares, then sell small quantities at lower prices causing the pps to go down.

MMs do not simply arrange trades between buyers and sellers, they participate by buying and selling themselves. It is done under the ruse that this is what keeps the stocks active. I for one would like to see the system not reward manipulation, but it is what it is.