RE: RSP bidding for shares21 Apr 2023 15:25
Yeah, thanks Roley, interesting. I was doing some research recently to try and explain all those very small trades to pop up during the day. Some had them down as just the MM’s balancing their books. I've looked at them before but it is a bit of a rabbit hole once you get into it. Then trying to pool all the info into something that makes sense.
Fwiw, here is the crux of what I posted. Feel free correct, add to or just tear apart as I'm sure I've only touch the tip of the iceburg here or may have interpreted things wrongly. :)
"So, a brief explanation from what I’ve gathered would be….
SI’s (Systematic Internaliser) are a type of financial firm that execute client orders on a trading venue such as the TradeEcho order book on the London Stock Exchange. They go on throughout the day as they must provide prices to clients who request them, and then execute trades at those prices, but without taking any market risk themselves.
I guess that would explain the small amounts.
If you look at them on the London exchange trades page, they are identified as SINT trades.
SI trades can be executed through a trading venue or directly between the SI and its clients.
Clients of SIs can access the TradeEcho order book to view prices and execute trades. They can enter orders to buy or sell at specific prices or at the prevailing market price. Trades are executed automatically when the bid and ask prices match, or when a client's order is filled by an SI at the price they requested.
Overall, the goal of the SI regime is to increase transparency and competition in financial markets by ensuring that SI’s provide quotes and execute trades in a fair and efficient manner. Similarly, the TradeEcho order book provides a transparent and efficient platform for executing SI trades and accessing liquidity from multiple sources.
There is a lot more to it when you get into all the other Market Identifier Codes (Mic's)
There are on-exchange and off-exchange trades, OTC and ECEU trades...."