Today’s Capital Markets face a growing number of obstacles for publicly listed Companies. With the onslaught of high-frequency trading ( HFT ), and algorithmic programs, the true value of a Corporations shares are highly vulnerable to irrational valuations.
Mechanical liquidity and volume can become a stock’s nemesis when confronting these challenges. The risk of over-exposure from these sources almost certainly results in an unrealistic share value. Although no markets are exempt from these programs the junior markets in Canada provide the greatest protection. With the manual implementation of liquidity and complete transparency provided in an orderly manner, share prices reflect a true picture to their shareholders.
GMUR Consulting complies with Exchange policies and regulations to assist in providing an orderly market. Will market making in a security raise the value of it’s share price? No, however the maintenance of the securities market will almost certainly add value to the shares allowing Corporate management to concentrate their time and efforts on their business. Our approach provides a constant and dynamic insight to your security while providing depth to call a fair two-sided market, combined with the expertise of relationship management services. In today’s markets high-technology is not always the desirable cutting edge in an environment where a human touch proves it’s worth.
The author of this article is Graham Murray, Principal of GMUR Consulting. Information provided in this article is gleaned from decades of industry-specific experience as a TSX and CNSX Market Maker, International Desk Sales Trader and Proprietary Trader for TSX Member firms. Please click the Youtube link below for a video explanation. *Disclaimer; I am an Equity Trader, not an actor.