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Std market maker for SI's????

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Occasional Contributor
Today around 4.30pm I tried to sell an SI. 2% of the sale went thru but thereafter - till the market closed - the best offer was around 50% of the matrix price. The underlying moved a bit but Std was clearly absent as far as maintaining the market is concerned - unless they were trying to pick up the installments at a generous discount. It's disgraceful! I spent time on the phone up to market close but the best I got was a direct number to the warrants desk. Anyhow, by then the market was closed. Does anyone else have a problem with this?
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9 REPLIES 9
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Valued Contributor
warrants desk is who you want to seak to, they are the market maker ..
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Not applicable
Chat to Richard, I deal with him mostly and have had little issue if I can proove my side. You gotta collect screen shots etc cause they do miss things every so often. Especially when the one you working with is low volume/low demand and there is more action else where on bigger shares etc.
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Occasional Contributor
I now have the warrants desk number on hand but there isn't always time to phone the warrants desk when one believes that SB is there to meet obligations. I'm just asking whether any other members encounter distinctly unfavourable odds when trying to do a tranaction.
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Sometimes I feel done in when it does not go my way but the next day I seem to do better than I expected so I forget to complain more about it....
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Valued Contributor
what you are asking is do they tilt the table against you ?? short answer is no, long answer is why woudl they ?? with no risk and keeping to the rules they can make money .. and if they did, why is SB the dominant market leader in the option space ??
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There is something that needs to be nailed down and clarified once and for all. In the STB courses they talk about Standard Bank being the "market maker" and it creates the idea that you are buying and selling from Standard Bank. This is not true. Standard Bank creates a product that you can trade with and run the backend transactions. They do not buy from you and they do not sell to you. You trade with other traders like any other share. Standard Bank just gives you the oppertunity to trade something, be it SI's, warrants, ssf or whatever. They are not your competition. Actually they are all a lot of pencil pushers that put something out there for you to trade so that they can make commision on the deales. Thats it. The words " Market Makers" is misleading and confusing especially to the newbies that attend these courses. I would rather say they are the "Market Creators" or "Product Initiators".
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Valued Contributor
not true .. SB are market makers, that means they are either side of fair value buying and selling .. at all timnes .. yes you can trade against other traders, but mostly you don't .. that said SB make money regardless whether you make money or not ..
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Simon, you have been in the business toooooooo long. Nevermind "fair value" and all that jargon. What you are saying is that, when I buy a SI, I am buying it from SB. When I sell a SI amd selling it to SB. If this is correct, who then is manipulating the price of the SI to go outside the boundaries of the matrix? This is what this form member is complaining about. There is a mismatch, between the true share price, SI price and the recommended Matrix SI price. Who is causing that mismatch? Is it not another seller of the SI?
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Valued Contributor
if the market maker is off matrix then there is a system problem .. they are fully automated and some times that falls over .. an you can buy/sell to other traders, but that only really happens with high liquid ones ..
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