$CRON, What Happened?

Just trying to brainstorm what happened yesterday to CRON. No particular conclusions yet. It might be impossible to truly know exactly what happened, but you could narrow down a few legitimate possibilities.

It does seem very likely that there was some kind of coordination going on when you consider the fact that the average of those two block trades lines up almost exactly with the midpoint. It seems very unlikely that this was just an accident.

Also included is a litigation release against Pipeline Trading from 2011, the first dark pool to be punished by the SEC for front-running.

Read the rest here

(NYSE)”When traders need to trade a large block of a given stock, they often trade off-exchange to avoid causing price disruptions. In the past, off-exchange trading was usually done between two brokers over the phone, in a legal practice called ‘upstairs trading’. As technology and regulations changed, large institutional broker-dealers created their own ‘alternative trading systems’ or ‘dark pools’ to conduct these trades. In dark pool trading, the prices at which parties are willing to trade are not visible. Dark pools and dark trading is legal, but dark pools are not subject to the same rigorous regulations as licensed exchanges.

The ability to trade in the dark has its role in efficient equity markets, however transparent, public trading venues where participants can see the prices is critical to the price discovery process. For this reason, NYSE continues to promote displayed markets and to prioritize lit (versus dark) trading activity”. Link

Wikipedia, ‘Tontine Coffee House’:

After hours, gambling and securities dealings were had – undertakings that were then deemed less than honest.[8] The coffee house also provided a place for the registration of ship cargo and the trading of slaves.[9] The Tontine was noted as classless;[4] individuals from all social strata met there and collectively engaged in the many civil and economic affairs. John Lambert, an English traveller, wrote in 1807:[10]

The Tontine Coffee House was filled with underwriters, brokers, merchants, traders, and politicians; selling, purchasing, trafficking, or insuring; some reading, others eagerly inquiring the news […] The steps and balcony of the coffee-house were crowded with people bidding, or listening to the several auctioneers, who had elevated themselves upon a hogshead of sugar, a puncheon of rum, or a bale of cotton; and with Stentorian voices were exclaiming, “Once, twice. Once, twice.” “Another cent.” “Thank ye gentlemen.” […] The coffee-house slip, and the corners of Wall and Pearl-streets, were jammed up with carts, drays, and wheelbarrows […] Everything was in motion; all was life, bustle and activity…Link

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