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Here is a great explanation of the closing auction and how we got out UT
An auction consists of two phases; the Call Phase and the Price Determination Phase. During the call phase, orders can be entered, changed or cancelled, but no trades are completed. Essentially during the Call Phase, there is a call for orders. A preliminary indicative price is also found. The subsequent phase is the Price Determination phase. During this stage, no orders can be changed, entered or cancelled. An order-matching algorithm is run which seeks to find a price at which the executable volume is maximised. In other words, the price reached is the price at which the highest volume takes place. Other conditions are also sought after in the final price. A 'minimum surplus' and accurate 'market pressure' are two of these. The final auction price is displayed as an 'Uncrossing Trade' - UT.
Thank you for the info Kevin. Very helpful.
That's correct, the UT is made up from combined buys & sells.
Next week should be interesting, relaxation time now.
Kevin hi, thanks for your post, just to confirm my own thoughts on an U/T.
I am glad that you posted that as IMO and my belief "That trade" was not a one person actual trade as it is marked UT.
In short:- At the closing of the auction the total bids/offers are frozen and an attempt ( algorithm) is made to match as many shares to be sold against shares to be bought - the result of this is what is known as the 'Uncrossing Trade' (UT)
An order-matching algorithm is run which seeks to find a price ( In our case 10p ) at which the executable volume is maximised. In other words, the price reached is the price at which the highest volume takes place and that result is a figure only and was 10p. Some say that an UT can be ignored as it is used for the single uncrossing trade detailing the total executed volume and uncrossing price as a result of a SETS auction.
Maybe this will explain in detail so others can understand more in detail about the UT symbol.
Personally I believe the SP will resume back on Monday to the actual closing price around 9.4p and not the end Auction UT figure at 10p. (It will show up as a closing price but it is the UT price and not the actual normal trade price as we know it as).
Normally most days after close you will always see a U/T in the share trade section to the very right of the trades some are shown with an 0 ( ordinary ) some with an A ( automatic ) and the other is UT ( uncrossing trade )
Thank you TomE
SN hi,
You are very welcome, hope you are well !!
Be a great next week for sure!!!!!
ATB
Tom:-)
Hopefully there will be a gap up at Monday's opening so that 10p does not become a barrier (wishful thinking).
Hi TomE. Normally I would agree with you as certainly IG rarely takes into account UT's. However my IG account is showing the price as 10p. so HOPEFULLY it will open at that sum. Also, up until close we were at 9.5p so for it to have been multiple buyers it would have had to have been very coordinated and so I personally suspect it was a big single order, perhaps one that they couldn't fill during the day and the buyer therefore agreed to pay the premium. Time will tell.
There has to be matching bid & offer prices in the auction that’s when the UT is struck. There would not be that many small sellers to meet the buyer s ? Bid As only big players will access the auction.
Perhaps Beetham is selling
Kev Hi,
Yes my account with ii also show the closing price at 10p but if it was a direct single purchase why show it as a U/T ???????
that's why it surprised me. Also normally the LSE closing price eventually shows the closing price above and in this case it shows SP 9.325. I do agree with your part re "couldn't fill during the day and the buyer therefore agreed to pay the premium" the 10p, that could be the answer, and maybe why the sp above could not take the auction close UT price into account as this action was after the LSE closed!!!!! must admit I have never seen that before.
Thanks for your reply a good explanation and lets hope it will open Monday at 10+ that would indeed be very nice indeed as to see it open at under will be a disappointment for sure, but lets look on the bright side :-))))))))))))))))))))
Thanks again Kev, put my mind at rest :-)
Keep safe and great w/e to all.
ATB
Tom :-)))
I agree with Tom in that the opening price on Monday will ‘appear’ to be down as the UT of 10p was not the actual closing price.
If anyone on here is interested there is a long time (and very respected) poster on the 88e board who has studied this UT action on 88e for some time. His theory is that the UT distorts the closing price so that an UT higher than the actual close (as we had yesterday) results in the share appearing to open down the following day whereas, if the UT is lower than the end of day price the opposite is true and the share price opens up the following day!
I have no idea how accurate or otherwise this is, but will be interested to see what happens on Monday as the difference between 10p and what is shown above is fairly significant!
Let’s hope whatever the outcome the general direction if travel continues Northwards towards Spy’s “strong feeling” figure which would be monumental for many!
VGL all!
I’ve just had a socially distanced shout across the street to a friend who informed the neighbourhood that he tried to buy £10ks worth From 3:45 yesterday and never got the purchase....properly hotting up now. Only one way togo if we all hold or add. I will be trying my hardest to buy on Monday. :-)
It's the clearing from the auction algorithm, mm's can also interchange through it. The distortion would naturally occur the price to open or down the next session.
By my reckoning HD117 would complete stage 3 phase for Havieron.
Back to relaxation.
@TomE
"Personally I believe the SP will resume back on Monday to the actual closing price around 9.4p and not the end Auction UT figure at 10p. (It will show up as a closing price but it is the UT price and not the actual normal trade price as we know it as)."
That crossed my mind, too, but I'm not so sure. The buyer wanted 12 million shares and got just under 10 million. If they come back for more after the weekend, that's a buy of 2 million shares that's going to be hitting.
And the MMs likely don't have any left after yesterday.
Many looking to take profit above 9.5p will now be taken out.
Anyone still short will be scared and most will be looking to close out their short positions.
You could be right, but if our buyer still wants his other 2 million, and maybe if he doesn't, I think we'll stay clear of 10p. News is coming soon, it's a bad time to be getting out of this share.
I think it was an American institutional investor. The share started to move not long after they opened up in America. Might have been one of the groups in that NCM II meeting a while back. The debt guys told the equity guys, the equity guys did their research, and boom, here we are.
TMT hi,
Sounds cool to me and lets hope we can stay or get above the 10p. Just came in from my garden and wow its hot out there.
The board has become very excited and loads of good posts coming in and some newbies too and that's good.
That's it back out to the firing heat with a bit more sun cream on and a few more beers, great stuff.
ATB
Cheers !!
Tom :-)
TMT are you out of your mind?
The SP is going to open up strong and explode in to the week
"TMT are you out of your mind?"
LOL. Wasn't me who first suggested it would open lower. It could happen, but I also think we're heading up, not down.
Like I said, I'm also certain our buyer was an American institutional investor who didn't get all the shares they wanted on Friday. If that's the case, they'll be back for the rest soon. Maybe, just maybe, if American, they'll hold off until later in the day, or maybe even for a couple days, to see if it drops back again.
But I don't think that's what we're dealing with. If you are going in more than £1M, you do that because you think you're on a winner that's going to make you at least 20-25% (far more, in this case, I think), and you don't mess around with trying to save 1-2% on the purchase price, you just buy and get your hands on it.
That's what it looked like to me. This wasn't somebody trying to gradually pick up shares here and there without spooking the market, this was somebody who wants the shares badly enough to be willing to pay even above the current market price for them. So I think they'll be back on Monday for the rest of their shares.
I think something else, too. I think it will happen again. The professionals are starting to pay attention.
It’s a bit unusual for a big institution to buy like happened on Friday. They usually buy over a couple of weeks stealthily and then a tr1 appears and everyone is shocked. Whoever it is singlehandedly bounced the market up and paid over the odds. Bit suspicious unless you happen to know if you don’t get in very quickly then you lose. Maybe there will be an rns on Monday or maybe someone knows that they found something even more astonishing than we think.
Just come in from removing horrible felt from a horribly hot shed roof.
I must admit Tom, It was like being one of those toilet cleaners who wins a packet on the lottery and then, when asked what he will do with his life, retorts that he will definitely keep his job going. It's not going to change him, no way. Cleaning toilets is all he's ever known.
Not me, I say to hell with this felt roof and anything that looks like a felt roof. If GGP continues to march I'm never going to fix one again. I'm just going to buy a whole yacht.
"It’s a bit unusual for a big institution to buy like happened on Friday. They usually buy over a couple of weeks stealthily and then a tr1 appears and everyone is shocked"
Except it's still way below the threshold for a tr1, unless they've been stealth buying for a long time.
12 million shares is around 1/3 of a percent, right? It's a large chunk of money, no doubt, but it isn't getting anyone any control or any particular influence. It's the kind of buy you might see from a hedge fund / small-cap equity fund. Or maybe a private bank, to allocate across some of their clients (if the surge in NCM is related, this might be it, they'll have clients who want greater exposure to gold).
A stealth buy happens when you want to build a bigger stake. This investor probably doesn't want to go any bigger than the 12 million shares, at least not right now. You don't want to wake up the market if you are going to keep adding. This investor didn't care about waking up the market, which suggests that this investor is done once they get their 12M.
Agreed Takingmytime. That’s what makes me think maybe something has leaked and there is little time to be stealthy. Next week may be entertaining. :-)
Well, I'm going to find Monday fascinating even if there is no RNS. It's that other 2 million shares that I find intriguing. If the buyer just says, "Go ahead, get me the other 2 million as well," it's likely to take out any remaining resistance, and who knows? We might get close to that 12p target by the end of the week, even without any RNS or other news. If they decide they've got enough and don't go for any more, then we could see a drop back. Or, they might decide to pick it up gradually and we could just stay supported right around 10p.
I actually have more professional interest than financial interest in this one. For us, GGP is a side-play, something my wife decided to take a flyer on almost for fun. We've got enough in it to care but we'd have to see a SP over a pound for it to really make much difference for us.
But watching this unfold from the PI side of things, not knowing exactly what's going on but having some good guesses, makes it really interesting. Unfortunately since the stake involved is well below reporting thresholds we might never know who it was and why they did it the way they did. But it's still very interesting / fun. And also exciting to think that for some of my fellow shareholders, it could be the start of something that truly is life-changing. That's a pretty special thing to be part of even in a small way -- lots of people never experience it at all.
Hi ballers. Your comment on leak? I've never known of a leak in the past so I cant see there being a leak now. I do think the meeting with the American bank may have opened up to new investors, would be very good if that is what happened because there may be a lot more big money investment coming here in the very near future
TMT hi.
Good post !!!!! and reading into it:-
I was thinking that if this buyer had the available cash for the 12 mill and could only get just under 10 they may well purchase the remainder ASAP i.e. first thing Monday Morning as they will want them as cheap as poss. If they wait the SP could go up more so buy ASAP imo, they might also put in a Buy limit for 10p so we might see that first thing !!!!!!
Cheers
Tom :-)
Love the sentiment in your 16.29 post TMT - I’ve been here pre-Newmont walk out and intend being here when the real value is achieved - haven’t sold a single share and just 2.8p away from ten bagging. This share has been my salvation so far and whilst I could retire just about now and be OK, the difference is holding for the real value and then it truly will be life changing - not just for me but my wife, son and grandchildren. Good luck to you TMT and all Greatlanders!!