Anybody else place a trade this morning?
I sometimes, when I feel that the relevance of news will be show to percolate for some thinly traded issues, break up orders so that it will not look like there is any sudden demand.
This morning, I placed three orders for SIBI at 1K shares each. The bid ask was something like 4 1/2 by 4 7/8 when I started (not sure of the exact numbers). I placed order #1 for 1K shares at 8:59 a.m., #2 for 1K shares at 9:29 a.m., and #3 for 1K shares at 9:31 a.m. All three were limit orders, no other restrictions, at 4 7/8.
#1 filled 500 shares at 9:37, 100 shares at 9:41, 100 shares at 9:43, and 300 shares at 9:54.
#2 filled 500 shares at 9:39 and 500 shares at 9:54.
#3 filled 500 shares at 9:34 and 500 shares at 9:54.
The bid shown at Schwab was raised to reflect my bid prior to the open, but was 4 3/4 or lower from about 9:25 on. During the period from open until the last trade filled, I never saw the bid higher than 4 3/4.
I don't mind this sort of manipulation, as it allowed my orders to fill. However..... (1) why??..... what is the advantage to the market maker? and (2) should I forward this post to the SEC? |
