Schweser example - Algorithmic trading strategies

Schweser Book 5, SS16, Reading 45, p131 Can someone explain to me why a percent of volume (simple participation strategy) isn’t used for LMNO stock in the example? My guess is that it is just the high spread. Because the urgency is low they could slowly unload the block to avoid market impact, but they would still get hit with the high spread. Is this how you guys interpret this too? More importantly, if the spread was lower, would the percent of volume strategy work here? Thanks.

I think so too. To avoid market impact. Though it’s low urgency, it would probably take a few days to completely fill the order because any time you’re over 20% of the daily volume with an illiquid stock (high spread) , you are having an impact on the price action, unless you’re completely passive. It would probably be easier just to shop the stock.