Hamster
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- Aug 22, 2006
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I'd like some clarification on what happened with Lonmin today @JustinPearse
I was able to buy earlier today, but then people complained that they cannot sell. I had a look:
Somebody said that it was because the JSE suspended trading, but I see no news on this. Please can you confirm what is going on. If EasyEquities can suspend trading themselves when things get volatile because of the way you acquire the shares in fear of losing money (in other words, putting your financial well being before that of the clients') then we have a problem.
=== EASY EQUITIES RESPONSE ===
With regards to not being able to trade:
I don’t know where those claims might have come from, but that is certainly not the case. Our trading desk was available to any and all clients to execute sales of Lonmin and were fielding calls and executing trades throughout the day. The only time they didn't carry out trades - and this may be the confusion with those claims - was when the share was in auction. During those periods, no EasyEquities clients were able to place trades and would have had to wait until the share came out of auction
With regards to not being able to sell when a share starts crashing:
With regards to a crash, yes the platform can handle this. Easy Equites has traded through a highly volatile year with major pullbacks and no suspension of services, however the situation with Lonmin is a particularly unique market condition. Even in a crash shares do not move to the extent they did nor go into auction as often as Lonmin did yesterday.
With regards to the concern of them selling shares at a premium and halting our trading to "cash in":
Purple Group, the 100% shareholder of Global Trader, is listed on the JSE and our income streams are audited and available for everyone to review (http://www.purplegroup.co.za/results.html). They are not different from our competitors that operate in the same space and neither our licenses nor operating business model have ever been drawn into question by our regulator/s or any credible source.
I was able to buy earlier today, but then people complained that they cannot sell. I had a look:
Somebody said that it was because the JSE suspended trading, but I see no news on this. Please can you confirm what is going on. If EasyEquities can suspend trading themselves when things get volatile because of the way you acquire the shares in fear of losing money (in other words, putting your financial well being before that of the clients') then we have a problem.
=== EASY EQUITIES RESPONSE ===
With regards to not being able to trade:
I don’t know where those claims might have come from, but that is certainly not the case. Our trading desk was available to any and all clients to execute sales of Lonmin and were fielding calls and executing trades throughout the day. The only time they didn't carry out trades - and this may be the confusion with those claims - was when the share was in auction. During those periods, no EasyEquities clients were able to place trades and would have had to wait until the share came out of auction
With regards to not being able to sell when a share starts crashing:
With regards to a crash, yes the platform can handle this. Easy Equites has traded through a highly volatile year with major pullbacks and no suspension of services, however the situation with Lonmin is a particularly unique market condition. Even in a crash shares do not move to the extent they did nor go into auction as often as Lonmin did yesterday.
With regards to the concern of them selling shares at a premium and halting our trading to "cash in":
Purple Group, the 100% shareholder of Global Trader, is listed on the JSE and our income streams are audited and available for everyone to review (http://www.purplegroup.co.za/results.html). They are not different from our competitors that operate in the same space and neither our licenses nor operating business model have ever been drawn into question by our regulator/s or any credible source.
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