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mm107

10/04/11 12:54 PM

#25653 RE: Tinker2387 #25651

imo, your right in the long run, this new rule allows us to be somewhat protected, on lower volume days no one will be able to just dump dump (not cnuv but across the board).

Now if the stock is trading a ton every day and is increasing the "daily avg" then down the road, the MMs are able to sell and stay under the 25% rule, etc.

Problem is alot of the smaller brokers do not have the capital to cover the fees since they are required to put up $$ per share and in penny land, millions of shares can quickly add up.

So basically the Brokers have an arrangement with the MM's now to "hold them" in their inventory as they sell to avoid the increased Fees.

This for 1, allows the MMs MORE control of the stock, which i do not like, but also gives us the incentive that the market maker wants to run the stock up to make his profit as well.