Hedgies use algos ALL the time to influence the price of a stock.
Hard for the regulators to prove until they change the rules compelling them to report their shorts.
Currently, prime brokers sign over their right to stock they own to the hedgies with an agreement to replace within a year. These are OTC contracts and outside the regulators reach.
If we are to have a level playing field, these quasi shorts MUST report to the regulator. Until then they continue to play havoc with the asx.
Rant over
New Feature Announcement!
We’re excited to introduce the DealRoom portal, now live on site, providing users with exciting access to private equity opportunities for both pre-IPO and publicly listed companies.
See full details by selecting the new menu item named 'DealRoom' on our main menu bar or click below.
Stay ahead of the market, with HotCopper.