as many know in here i'm a volunteer basher at cmkx. its fun & entertaining. but a bit of info came out today that i didn't know happened & could explain a few things. this a section of the pumper Zoomingstocks pr today about cmkx...
CMKM Diamonds, Inc. was recently featured in the Zoom Generation Newsletter, a weekly subscription publication from Zoomingstocks.com as being the subject of the "trading rebate program" which creates incentives for traders to engage in transactions with no economic purpose other than to receive market data fees. The SEC believes that such trading may distort the actual volume of trading in these securities. Moreover, the Commission is concerned that the structure and size of market data revenue rebates may be distorting the reporting of trades, and that these rebate programs may reduce the regulatory resources of the markets and reallocate the funding of regulation among participants.
Ever wonder why CMKX and other sub-penny stocks have such a high volume of trades per day? This trade rebate program accounts for a majority of those trades. The SEC is implementing reforms under Regulation NMS to curtail some of this activity and allow only relevant trades to be counted in the day's volume.
i wonder if all penny stocks are fair game for this or only certain 1's. HISC the last 2 days has baffled me. i see 20 buys come in & the ask drops 1 tick with no or 1 or 2 sells. twice the next couple trades were buys at the new, lower ask, then 2 or 3 sells would come in. yesterday it started running all of a sudden 25 to 30 sells in a row came in & the bid stayed the same, run over & this was at 10am. how many times have we seen a huge number of sells fly in & wonder why would anyone sell the pps might only be upo 15 or 20% & a run is killed because everyone sells. mm's send a bunch of fake trades thru at bid, get paid for the data trades & kill a run on a stock we know has a low float or is way over sold
Posted by BlindMellonChitlin on :
This is just one more instance highlighting how the SEC is either out of the control loop, is biased towards the Market Manipulators or both.
The naked shorting crap is still a big question too, along with the unbelievable reverse split revolving door with no consequenses.