IPMC and Alan Question: If IPMC is correct a
Post# of 96879
Question:
If IPMC is correct and CDEL is using a computer trading model and super fast computer to front run trades by .0001 above the active buy transaction...
Then that leaves CDEL is a position to theoretically grab all of the "buy" transactions. ( I know that they aren't grabbing 100%, because several of us are reporting transactions every day) - but it lets them grab the "buy" transactions that they want...
Assuming the above is true, CDEL could very well be absorbing much of the new naked short shares created by other market makers, and tomorrow it could be CDEL offering the new naked short shares...
And the MM could clear each others naked short positions the next day. (as long as they are both fronting all or most of the buy transactions)
This would mean that the real net short positions can be less that just adding up all of the naked short positions created each day - leaving these guys with a more manageable short position.
Is this making sense or am I chasing my tail?
Paul