Replies to post #67898 on DD Support Board and Research Team

[janice shell]

It's been noted many times, on this board and others, but no one's ever come up with an explanation.

[BigBake1]

Yes, it is a Block Position Fee assessed against the selling party, every transaction that comes from that Block Position is going to result in that 100 share trade. That is why it doesn't matter if the trade happens on the Ask or Bid since the Block position can sell on either side. As to the exact details I could not tell you exactly what the idea is behind it, in GNCP for example they are getting .01 to .0197 per transaction. The problem is you can only see the first 4 digits after the decimal. So what people see on the consolidated tape is .0001 is likely .000197 in the FINRA report.

I have a feeling FINRA is just going to tell you they are fees assessed and not much else. But who knows you might get a better explanation. If I were to contact a specific broker, I would start with Scottsdale Capital or Alpine, in their schedule of fees they clearly outline they will charge per transaction for such Block Positions especially if the security is under .15. Of course these are negotiable.

Block orders (100,000 shares or more) subject to block fees of $.0005 per share (capped at 1.5% of the principal) in addition to all commissions, trading fees, ECN fees, miscellaneous fees and regulatory fees. Shares less than $.15 cents per share subject to an additional $.00001 per share per execution. Block fees at Alpine Clearing may be a flat 1.5% on principal.

http://scottsdalecapital.com/wp-content/themes/Yasmin/pdfs/SCAFeeScheduleRevised4-22-2013.pdf

I believe you are correct, it is a form of commission mining on the seller of these junk securities.

[integral]

It has to be in the software somewhere. Someone needs to determine is there a pattern in the buyer or the selling firm?

[Crazy Money]

I personally hate the 911 prints regular folks do... have something on ask... gets hit with a 911 partial... ahhhh! then nothing else sells there and stuck with the commission and then want to just leave the order there... and then the stock tanks etc... lolzzz... the only thing I don't like about ETRADE is lots of times ya get hit with tiny prints if ya don't have an AON set... lolzzz or any other paints that normal folks do on da OTC stocks... whatever amount... grrr :-D weeeeeeeeeeeeeeeeeeeeeeeeeeeee - FYI: all people that think I am an evil shorty ;-) I use eTrade only... thus it is impossible on da OTC :-) lolzzz... if selling shares you had already bought, is being a shorty... then it could be true... lololzzz... also no MM or anyone else pays me to post on iHub... lolzzz...