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Message: Apparently, the MMs will do anything to show a loss in the day for EDIG...
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Apparently, the MMs will do anything to show a loss in the day for EDIG...

posted on May 11, 2009 03:50PM

Here are the last trades (T+S) for EDIG today:

0.14(b) 100 OBB 15:52:33
0.14(b) 100 OBB 15:46:37
0.145(b) 3940 OBB 15:36:00
0.15(a) 2805 OBB 14:51:36




For those who don't see it, here's the rule that covers OTCBB quotes and the requirements by the MMs when posting their bid (and ask):



6450. Minimum Quotation Size Requirements For OTC Equity Securities

Every member firm that functions as a market maker in OTC Equity Securities by entering firm quotations into the OTC Bulletin Board Service (OTCBB) (or any other inter-dealer quotation system that permits quotation updates on a real-time basis) must honor those quotations for the minimum size defined in the table below. In this regard, it is the market maker's responsibility to determine the minimum size requirement applicable to its firm bid and/or offer in each of its registered securities (excluding OTC Equity Securities for which the OTCBB will not accept firm quotations). Depending on the price level of the bid or offer, a different minimum size can apply to each side of the market being quoted by the member firm in a given security.
Price (Bid or Offer) Minimum Quote Size
0–.501 5,000
.51–1.00 2,500
1.01–10.00 500
10.01–100.00 200
100.01–200.00 100
200.01–500.00 25
500.01–1000.00 10
1000.01–2500.00 5
2500.01 + 1


1 The OTCBB can accept bids/offers expressed in fractions as small as 1/256 or in decimals up to six places. In applying the price test for minimum quotation size, any increment beyond an upper limit in the right hand column will trigger application of the minimum quote size for the next tier. For example, a bid (or offer) of $.505 must be firm for a size of 2,500 shares.

Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
Renumbered from Rule 6750 and amended by SR-NASD-2005-087 eff. Aug. 1, 2006.
Amended by SR-NASD-2000-17 eff. September 5, 2000.
Amended by SR-NASD-99-32 eff. September 23, 1999.
Adopted eff. Sept. 8, 1993.

Selected Notices: 93-54, 08-57.











It would appear that the last MM who offered .145 (on the bid) for the required 5000 shares decided to lower the bid and/or no longer offer .145 for the required minimum size as only 3940 shares were bought at .145 before the rest of the 200 shares were 'bought' at .140.



If there had been more than 5000 shares 'sold' at .145, then the MM who bid .145/5000 would have met the requirement for minimum size of bid, at least according to FINRA's requirements in order to list on the OTCBB.



Now I know you might say 'well, they could have picked up the rest earlier at .145 bid... however, if you look at the entire day, you will see that the only trade at .145 was the 3940 size near the end of the day.



Price Size Exch Time
0.14 100 OBB 15:52:33
0.14 100 OBB 15:46:37
0.145 3940 OBB 15:36:00
0.15 2805 OBB 14:51:36
0.14 600 OBB 14:10:07
0.14 300 OBB 13:38:23
0.14 1000 OBB 13:15:36
0.14 3700 OBB 12:29:41
0.14 2000 OBB 12:02:28
0.14 5500 OBB 11:37:20
0.15 11000 OBB 11:13:45
0.15 3500 OBB 11:07:53
0.14 1400 OBB 10:26:03
0.14 500 OBB 10:23:45
0.14 1600 OBB 10:23:45
0.14 492 OBB 09:50:58
0.14 1442 OBB 09:30:35
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