Custodian bank--this is where ETF assets are held. To be clear, this is where the actual stocks that a fund owns are kept along with any cash--this is the fund.
Market makers are not custodian banks where ETFs are concerned. There is news about a market maker and the shares of that market maker are down dramatically. This has no impact on the value of a basket of stocks held at a bank.
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4 comments:
I haven't looked recently but I have always found lacking the disclosure of swap counterparties in fixed income ETFs. These can be fairly large positions in the funds.
Roger, I am the person who commented yesterday about the lack of RRGR volume. Interesting that today's volume, 76,594 shares according to Yahoo! Finance, was quite a change; one 67,600 share block, one 3,900 share block, and the rest of blocks (totaling 5,094 shares)of 1,000 shares or less. My assumption is that it has more to do with your market maker than anything else; possibly Knight selling their inventory to another institution to raise capital. In my mind, the 5,094 shares traded via the small blocks throughout the day is a real positive, as this indicates that retail investors may have been the buyers. Do you know if Knight is still the market maker for RRGR? Thank you.
Knight is not not the market maker. I had several convos today about this during the day and quite a bit of email flow. We have been told there are other market makers stepping in to provide liquidity.
We cannot yet confirm whether the 65,000 premarket shares was Knight raising capital from its position in RRGR. It might have been it is just we have no confirmation either way.
Thank you, Roger. I, and I am sure most of your readers, very much appreciate your openness and transparency.
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