This is an often raised subject and frankly I have never fully understood the explanations offered, including that of our own Simon from OST. These auctions seem to be the preserve of the priveledged few. Not really sure who qualifies to participate, but it does seem like the big traders (like Unit Trust Managers, EFT Managers & Stock Brokers, much like an "Old Boys Club". Looking at Billitons last trade today, some R150m changed hands at below the price that ordinary investors like all of us were trading. Are these trades conducted between fund managers, because it is doubtfull if that many shares were available in the open market. Seems to me like there are more questions than answers concerning this auction, and price manipulation does appear to take place. Surely the JSE, who do a fine job of running the exchange, should play open cards and fully explain this activity, in the interests of transparency and level playing fields. Is anybody else with me on this one?
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