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tilly,
keep passing those rums around....
justahobby
"That means they must have to hold some considerable volume of shares by definition to be ready to potentially buy and sell in any quantity"
not quite, they quote a price AND a volume they are prepared to buy or sell. There is a minimum, but that's all they are obliged to do
Most MMs are really traders acting as MMs - so as you say they can manage a position if they want to like any one else
A "pure" MM is only interested in the spread and does his or her best to balance buys and sells...
...by moving the price
Ferg,
Agreed it is a CFD short opening or getting shorter with a back to back physical long (buy)
My views are well known so I won't repeat them
sharpeye
nice....
Ethio
I think the client is a subsidiary of UBS that is managing UBS' CFD service
(sorry to everyone else for repetition) but here is my previous note...
For those interested in 8.5s read on, those not just ignore
I think this is what's going on, which is basically good news because it indicates net CFD positions within the UBS umbrella moving longer, and may well be indicative of CFD shorts closing (but equally be long bets getting bigger or some combination)
It seems UBS are hedging the longer CFD positions by buying physical shares and the CFD transaction listed is the flattening of the CFD position with a short
"It remains common for hedge funds and other asset managers to use CFDs as an alternative to physical holdings (or physical short selling) for UK listed equities, with similar risk and leverage profiles. A hedge fund's prime broker will act as the counterparty to CFD, and will often hedge its own risk under the CFD (or its net risk under all CFDs held by its clients, long and short) by trading physical shares on the exchange. Trades by the prime broker for its own account, for hedging purposes, will be exempt from UK stamp duty."
greenman - have you tried a limit order to buy?
greenmandk
don't think so - just UBS re-hedging their CFD portfolio - still moving longer - good(ish) news
Shezer,
you've got a blue!!!! That's good going!
I see RBW are up around 20% - that was mentioned here - anyone know what's happening (sorry too lazy to actually go and look!)
Mike,
You may well be right - I assume if the sale is big enough the buyers will need to get shareholder approval?
tc101
no probs
although the contracts are no doubt exceedingly complex, and an astronomic amount of DD is required on both sides, the house purchase analogy (which we're all familiar with) does help us get to grips with the thing
btw most of my portfolio down about 4% today - EUA one of the best performers!
tc101
part of Piper's DD will be to make sure the buyer(s) have the readies to pay
I'd like to see a mortgage application for 5B (assuming 75% LTV)...
tc101
I think anyone still can gazump - and it does happen - but I don't know if that means the legals start all over again - I doubt it
but until the contracts are "exchanged" there's nothing binding
tc101
good question - it's not the same as a house sale - but if you think about it:
you agree a price
you engage lawyers to agree a contract
you exchange contracts
you complete
this looks to be similar - before we exchange contracts the shareholders have to agree...
Dickie,
You think the SP moving down then up is related to UBS's activities? Or their clients'?
Jambo,
My take is UBS offer clients a CFD service (not retail)
Their clients are getting longer on CFDs, so the 8.5 is UBS buying physical shares as a hedge, and flattening their own CFD account with the CFD short
This means the CFD bets are getting longer (with UBS) - this may be shorts closing, or positions just getting longer - either way it is effectively more buys. I have posted several times on this - just click no my name for my detailed view
I just successfully opened a Buy limit order on IG in EUA..
No probs there
I just tried to place a short limit order on IG in EUA, and got a message saying I couldn't do it because of stock borrowing restrictions
When I googled that I find it meant they couldn't hedge with a physical short because no-one would loan them shares
Seems they're worried about getting their shares back...
... I wonder why
... another 8.5
Only joking!
Moneymaker,
Yes that's the downside of risk management
Sorry if you've been asked before but if an offer for EUA came in tomorrow and you decided to sell out, what would be the top three growth stocks you'd be thinking about, or investing more in?