I saw some extremely high volume, single trades going through at the close today. What could be the reason for this? For example, in MML, I noticed a single block of approx. 1.3million shares go on the ask during the closing auction, pushing the estimated close price well below the lowest price traded during the day. Now to put the size of this trade in perspective, we’re talking about a single parcel of stock that is considerably larger than the entire stock traded over the entire day up until the closing auction, and about double the average daily traded volume for this stock! Since this is approx. $7 million of stock, it’s obviously institutional volume, but why would they put this size trade on in one go instead of spreading it out over the whole day, or over several days to avoid pushing down the price? It’s as if they were intentionally trying to depress the price for some reason.
And I also noticed the same thing going on with EVN today – another, single, absolutely enormous size sell order going on in the closing auction. Check out the image below. That volume shown at 162 ($1.62) is the volume traded at the close. Compare the size of that volume bar to the volume traded at all the other prices during the day! I thought the idea was to trade in small enough parcels so you don't move the market, so why would they do this?