Hi Martin, Jitney trading doesn't work like that. It is a very grey area of the market, and usually only used by investors with large (200,000+) blocks of stocks to hid their trades. Jitney trades usually are done through traders at the smaller, non-bank owned houses. (Georgia Pacific, PI, Yorkton, McDermid, CMO, Global etc).
The traders that execute the jitneys know each other, so usually, if a house in Vancouver jitneys a trade, its for another Vancouver house. Same goes for Calgary and Toronto.
Depending on the situtation, the broker that asks for a jitney, losses some or all of his comission on the trade. If the broker is charging you extra for this (or even offering jitney trades for you), I'm sure his or her compliance officer would love to hear about it.
Cheers,
Kent |
