RE: Hargreaves L7 Apr 2023 00:44
Okay, It's a bit of an ask to explain the small trades in a simple post Stokey, but I've had a go.
Firstly, they are not Pi's with fat fingers getting dummy trades wrong.
Athough, saying that, I'm sure sometimes we have all been there at some time with a mistaken press of the button in a panic to get a price.
No, the small trades are SI trades. And nothing to do with me, honest. :)
I’ve investigated them a few times over the last couple of years to get a better understanding of how the market works.
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....
Hope that helps a little.
Please DYOR, there are hours of fun waiting for you.
GL.
That, or it’s the MM’s balancing their books.
(commission free, obviously.) ;)