The image below shows the Level 2 bids for Fortescue Metals Group Ltd (OTCQX: FSUMF) on 2020-10-07 10:19 am:
Notice the 0.01 × 10,000 bid by NITE (Virtu Americas LLC), which is extremely unlikely to be matched. What's the reason for placing a bid at an absurd price? Why don't market makers simply cancel their orders instead?
I've noticed this practice — market markers placing very low bids or very high asks — in many securities, so I think this is a rather common practice.
I understand that the minimum quotation size in this case is a function of the bid price (according to FINRA rule 6433. Minimum Quotation Size Requirements For OTC Equity Securities), so my question is more about the $0.01 bid price rather than the 10,000 bid size.