The Markets

please note readers should be aware that not all statements may be factual, correct or up to date, please verify and research independently where possible.

Investing in OIL August 2018
https://www.hl.co.uk/oil?cid=halDM37722&bid=162458872&e_cti=5990348&e_ct=T&utm_source=AdobeCampaign&utm_medium=email&utm_campaign=Copy%20of%20EO672_Oil_email_1_03.08.18_alt_Content&theSource=EO672&Override=1

The 7 Key Factors Driving Small-Cap Oil and Gas Valuations
https://www.tagoil.com/wp-content/uploads/2016/01/TAG-Analyst-Report_7-Key-Factors-online_1-28-16.pdf

88E is listed / traded on four markets.

ISIN Number AU00000088E2

International securities identification number (ISIN) Codes

The International Standards Organisation (ISO) has provided a standard (ISO 6166) for the numbering of securities. This standard is intended for use in any application in the trading and administration of securities.

The ISIN is a code which uniquely identifies a specific securities' issue.

The ISIN consists of:
•a prefix which is a 2-character alpha country code.
•a 9-character code which identifies the security.
•a check character computed using the modulus 10 formula

ISIN Number AU00000088E2

ASX (Australia)

http://www.asx.com.au/asx/share-price-research/company/88E

https://www.asx.com.au/documents/research/company-reporting-dates-2019.pdf

https://www.asx.com.au/products/shares/buying-selling-shares.htm

https://www.asx.com.au/education/shares-course.htm added 02/07/2019 see page 8 for explanation as to how market works.

Options

http://www.asx.com.au/documents/resources/UnderstandingOptions.pdf

Chi-X (Australia)

https://www.chi-x.com.au/market-data/

CommSec frequently asked questions ASX & Chi-X Markets
https://www.commsec.com.au/support/frequently-asked-questions/240.html

AIM (London)

88E is traded on the SETsqx platform

http://www.londonstockexchange.com/prices-and-markets/prices-help/trade-type.htm

http://www.londonstockexchange.com/companies-and-advisors/aim/aim/aim.htm

http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/AU00000088E2GBGBXASQ1.html

http://www.londonstockexchange.com/exchange/searchengine/search.html?lang=en&q=XOFF&x=13&y=10 NEW MARKET IDENTIFIER CODES

https://www.londonstockexchange.com/companies-and-advisors/aim/regulatory-landscape/aim-landscape-infographic.pdf

http://www.londonstockexchange.com/companies-and-advisors/aim/publications/rules-regulations/aim-rules-for-companies.pdf Rules for companies Jan 2018

http://www.lseg.com/sites/default/files/content/documents/Further%20improvements%20to%20auctions%20on%20the%20SETSqx%20Trading%20Service.pdf Periodic Auctions

https://www.lseg.com/areas-expertise/market-information/regulatory-news-service

https://www.londonstockexchange.com/companies-and-advisors/aim/publications/a-guide-to-aim-tax-benefits.pdf

German Stock Exchanges
http://www.finanznachrichten.de/aktienkurse-boersen/88-energy-limited.htm

Trading Calendars

LSE http://www.lseg.com/areas-expertise/our-markets/london-stock-exchange/equities-markets/trading-services/business-days

ASX 2019 https://www.asx.com.au/about/asx-trading-calendar-2019.htm

Chi-X https://www.chi-x.com.au/trading-information/market-holidays/

FCA

We protect and enhance the integrity of the UK financial system. This benefits firms, individuals and society as a whole, and we work to ensure markets are effective, efficient and reliable
https://www.fca.org.uk/
https://www.handbook.fca.org.uk/handbook/COBS/

Information

Analysis

http://www.investorsintelligence.com/x/why_technical_analysis.html

http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/exchange-insight/technical-analysis.html?fourWayKey=AU00000088E2GBGBXASQ1

http://www.asx.com.au/prices/charting-library.htm

A commonly used tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, 88 Energy (88E.L) has a 200-day MA of xxx, and a 50-day of xxx.
Presently, the stock has a 14-day RSI of xxx, the 7-day is sitting at xxx, and the 3-day is resting at xxx. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum.

Bid Offer Spread
The difference between the bid price (at which the holder can sell shares) and the offer price (at which the holder can buy shares). On occasion this can be quite large and depends on the equitys underlying price, liquidity, volatility and a number of other factors.
Many unit trusts also have a bid-offer spread and effectively this amounts to an extra exit charge when the investor sells.
http://www.lse.co.uk/financeglossary.asp?searchTerm=&iArticleID=1847&definition=bid_offer_spread

Buy or Sell?
"The London Stock Exchange does not disclose whether a trade is a buy or a sell so this data is estimated based on the trade price received and the LSE-quoted mid-price at the point the trade is placed. It should only be considered an indication and not a recommendation.
Trades priced above the mid-price at the time the trade is placed are labelled as a buy; those priced below the mid-price are sells; and those priced close to the mid-price or declared late are labelled ‘N/A’. "

Update 09/01/2019

"The 88 Energy Limited (TIDM : 88E) is trading under the ASQ1 trading segment. So as per the below rule which we have agreed with our business, we have to consider the Mid values for this segment.

Rule:
For instruments with segment different from ("SET0", "SET1", "SET2", "SET3", "STMM", "SSMM", "AMSM", "SSMU", "ETFS", "ETF2", "ETFU", "ETCS", "ETC2", "ETCU", "IECF", "EUE2")
o The “Mid Price” ((bid + offer)/2) is the summary price and high, low, net change and % change are based on it.

Therefore, the below tags/labels (in the summary table) are considered for 88 Energy Limited as it is coming under ASQ1 segment.

Mid Price  is calculated as the average of the values of the on-book BBO as Bid + Offer / 2. Considering only on book order/quote.
Mid High  is an intraday data and represent the maximum value of the Mid Price(Considering only on-book order/quotes).
Mid Low  is an intraday data and represent the minimum value of the Mid Price (Considering only on-book order/quotes).
Bid  Best buy Price. Considering only on-book order/quotes.
Offer  Best offer price. Considering only on-book order/quotes.

If Mid Price, Mid High, Mid Low, Bid and Offer tags/labels are filled with values, this means that an order or quote has been published even if no trades (coming from on-book or off-book orders) have been executed yet, as occurred in the past days for 88 Energy Limited (only had off-book trades but there were on-book orders or quotes).

Please note that, on-book orders or quotes will not be displayed as trades under the Trades Table. This is why you cannot see the High Price (Mid-High) has not been traded for the day."

There are two main types of trading mechanisms:
• Order driven markets
• Quote driven markets

In an order driven market, buyers and sellers of assets are able to place orders for assets they wish to purchase or sell. They can list at market price, which executes a market order instantaneously at the best available price.

In a quote driven market, continuous prices or “quotes” are provided to buyers and sellers. These prices are provided by market makers, which mean these types of systems are better suited for dealer or OTC markets.

You can gain a good knowledge on order driven and quote driven markets by referring this URL : https://www.investopedia.com/ask/answers/06/quoteorderdrivenmarket.asp

Regarding what is ‘off-book’ : An ‘off-book’ trade refers to a stock trade that is executed away from the exchange, via the OTC market.

Usually, a trade price is agreed between two parties and then one of the two trade participants will report both sides of the trade to the market in order to bring the execution ‘on exchange’. This reporting process can be delayed up to a specified time, according to the exchange’s parameters, and doesn’t have to be immediate.

Website team, LSE plc
London Stock Exchange Group 09/01/2019

Bull & Bear Markets
https://www.stock-options-made-easy.com/bull-and-bear-markets.html

Share Consolidation
https://blog.shareinvestor.com/share-consolidations-and-share-splits/

Fundamentalism
http://www.investopedia.com/articles/fundamental/03/022603.asp

Level 2
http://www.moneyam.com/help/?page=level2

Market Makers
A Market Maker runs a 'shop' and you buy shares from him or sell them back to him.

The Market Makers act as retailers of shares and display their prices during working hours. The prices may vary (sometimes considerably) during the day, depending on a number of influences. For example, if holders of very large amounts of a share decide to sell (or a combination of a lot of holders of small amounts), then the Market Makers will reduce the price that they are prepared to pay for the share. The converse is true also; if there is a consistent and large enough demand for a share, then the Market Makers will increase the price. Market Makers make money from buying shares at a lower price to which they sell them. This is the bid/offer spread. The more actively a share is traded the more money a Market Maker makes.

It is often felt that the Market Makers manipulate the prices. "Market Manipulation" is an emotive term, and conjurers images of shady deals and exploitation. Market Makers are not elusive companies that appear then vanish overnight. Market Makers are duty bound to make a market and to meet the needs of those they are responsible, to this end they may try to influence the market.

Market Makers are however known to lower prices to "panic" investors into selling, sometimes called "shaking the tree"? Moving the price up, encourages sells, moving it down also encourage sell, hence also the term dead cat bounce when a Market Maker will mark a falling stock up to encourage buyers in thinking they have reached the bottom.

A good pricing system such as Level 2 will give you an indication which Market Makers are keenly priced. Your broker using the same systems as you now have can sometimes get a better price than those on the screen. This is because Market Makers compete with one another for business. When your broker calls the Market Maker he is giving them the opportunity to 'bid' for the business, the Market Maker may well improve on the price on offer via the screens. The Market Maker only makes money when they are buying and selling, so the Market Maker will prefer to see the business go through their books at a reduce margin than allow it to go to another Market Maker.

When you buy and sell shares in most circumstances (SEAQ/AIM) your broker has to go through a Market Maker. The Market Maker works for an institution that makes a market (will buy and sell) that particular stock. They provide the market with liquidity - i.e. there will always be a price you can sell your stock at, there will always be a price you can buy some stock at (unless the share is suspended).

Market Makers obviously have a degree of risk. If there is a flood of sellers, because the Market Maker's job is to provide liquidity, he has to buy those shares even though the rest of the market may want to sell. If the price continues to fall he could be left with a lot of stock on his hands that he paid considerably higher prices for than he can sell for now. And vice versa - if a share is rising sharply the Market Maker has to continue selling the stock to the buyers - he could end up "short" of stock. In this situation he has sold stock he has not got, to fulfill all the buy requests, and he has to buy this stock in to balance his books, but at higher prices and makes a loss.

The Market Makers are effectively in competition with each other. With the example of IMG above, why would a seller want to sell shares to UBSW at 380, when the seller can deal with MLSB or AITK and receive 385p per shares? If UBSW wants to purchase shares, the Market Maker has to raise its bid price. If Market Makers want to buy shares because they may think the stock is heading up or they are short of stock they have to raise their bid price if theirs is not the best bid on the screen. This can cause the spread to narrow. If Market Makers are keen to sell stock they may want to lower their offer price to tempt buyers in. If all Market Makers start moving their offer prices lower to tempt in buyers and offload stock, certain traders could view this as negative for the short term. If Market Makers need or want to take in more stock they will raise their bid prices - certain traders again could see this as a sign of a short-term upswing in prices.

If a Market Maker does not want to trade in the stock he is making a market in he may make his bid/ask spread so wide to discourage anyone to trade with him. If all the Market Makers do this the stock can become illiquid temporarily as no trades are going through - buyers do not want to buy, sellers do not want to sell their stock at what they envisage is a poor bid price.

MMs registered to deal in 88E stock (24/04/2019)
JOH. BERENBERG GOSSLER JBER
CANTOR FITZGERALD EUROPE CFEP
CENKOS SECURITIES PLC CNKS
PEEL HUNT LLP PEEL
SHORE CAPITAL STOCKBROKERS LTD SCAP
STIFEL NICOLAUS EUROPE LIMITED STFL
WINTERFLOOD SECURITIES LTD WINS
https://www.londonstockexchange.com/products-and-services/trading-services/registered-market-makers-by-security.xls

Each DMM (Designated Market Maker) working the Book belongs to an Investment Bank.

The DMM's buy from the Bid to increase their inventory then move to the Ask to sell, then when they have exhausted their inventory they move back to the Bid to buy again.
At any one time the top DMM's by "price" on either side are working.
So in the Screencast it shows 3 DMM's @ 1.09 are buying with only WINS @ 1.11 selling

http://www.screencast.com/t/HgJyV6xn8

In times of low trading volumes some DMM's may be dormant, but each one knows which are working and which are not at any given time, but when trading gets more intense more DMM's become active and move as described above.
Cenkos Securities is the House Broker and is also listed as 88E's Advisor.

Price Monitoring Extension

https://aim-watch.com/articles/price-monitoring-extensions-explained/ Added 06/03/2019 recommended read

This happens on shares all the time and rarely means anything other than mms are still balancing the books.

http://www.lseg.com/sites/default/files/content/documents/Further%20improvements%20to%20auctions%20on%20the%20SETSqx%20Trading%20Service.pdf

Here's the definition from another board.

At 4.30 p.m., automatic execution finishes and the market moves into the auction period. The initial auction period runs for five minutes, during which time market participants can place both market and limit orders.

If the demand to buy or sell at the close is sufficient to move the price outside the 5 percent band, then the price monitoring extension period allows time for liquidity providing or opportunistic market participants, such as market makers, to enter orders to balance the market.

http://www.theel1tetrader.com/2013/01/lse-closing-auction-how-it-works.html added 10/12/2018

Rollovers

What is a rollover?
In trading, a rollover is the process of keeping a position open beyond its expiry.
Many trades have an expiry date attached to them, at which point the position will automatically close and any profits or losses will be realised. In some circumstances, however, the trade can be rolled over. This means that profits or losses will be realised and the trade gets a new expiry. Often, a rollover will come with an associated charge.
https://www.ig.com/uk/glossary-trading-terms/rollover-definition

LSE Rule on Roll Overs
When conducting a roll over trade or a sale and buyback, member firms should consider the volume of business that these trades account for, relative to the daily market turnover in the security. Member firms should ensure that they have adequate procedures in place to monitor this activity and controls to prevent customers circumventing these by using different methods to deal, such as opening a position by telephone whilst at the same time closing another using one of the member firm's web based systems.

Where these trades are conducted in less liquid securities, the market may see inflated turnover in the security which is actually only a customer buying and selling the same position. Undertaking such sale and buyback trades, in addition to the regular rolling of trades, could give a false or misleading impression to the market and the Exchange may consider this to fall under general conduct rules 1400.

(Amended N09/17 – effective 3 January 2018)

Share Bagger Definition
http://www.investinganswers.com/financial-dictionary/stock-market/10-bagger-1332
https://www.divestopedia.com/definition/1016/ten-bagger

Share Shorting - unmoderated 260217

Q.: Why does short selling reduce share prices?

A: To short-sell a share speculators have to borrow the shares in the first place. Once they have done this they need to sell them in the market, and if this is done en-masse it can push the share price of a company down in the short term as there are more sellers than buyers in the market. Hedge funds specialising in short selling may also cause panic in the market by selling lots of shares in a company as other shareholders become worried about the share price plunge. Some companies will blame short sellers for dramatic declines in their stock price. The practice is so controversial that bans on short selling are not unknown and during the last credit crisis in 2008, traders were not allowed to short-sell certain banks and financial institutions
Most borrowers and lenders of shares are institutions, brokers, etc. Mere mortals can borrow indirectly by using Spread Bets or Contracts for Difference. If you go short, you are effectively borrowing shares to sell for money; if you go long, you are effectively borrowing money to buy shares. Depending on the balance between shorts and longs, the company offering these products may choose to cover the risk by borrowing real shares to sell or by investing money to buy real shares.

http://www.investopedia.com/university/shortselling/

http://www.contracts-for-difference.com/Borrowing-lending-shares.html

Stock Volume & Price Action
https://www.learn-stock-options-trading.com/stock-volume.html

Trade Types
'N' Non Protected Portfolio
A non-protected portfolio transaction or a fully disclosed portfolio transaction. Normally a transaction of a number of stocks dealt with by one market maker at an agreed discount to the market price.

'T' If reporting a single protected transaction.
A protected transaction occurs when a large order is going through the market. The buyer (or seller) may wish to keep the order anonymous from the rest of the market as the size of the order could greatly alter the price of the stock. With a protected transaction, the dealer will put the trade through in small quantities rather than knock the whole order out in one hit. The entire transaction is reported once the deal is completed. The LSE is notified at the start and at the end of the transaction. However, the market as a whole isn't told until the end, thus the order is protected.
https://uk.advfn.com/Help/trade-types-1549.html

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