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Archive for the ‘market manipulation’ Category

Are Electricity Markets Being Manipulated in Texas?

Posted by Larry Doyle on May 7th, 2014 8:58 AM |

Market manipulation is certainly not restricted to Wall Street.

In fact, I believe the most egregious case of market manipulation goes back to the early years of this century when traders in a Houston based firm known as Enron — you remember the names Lay, Fastow, and Skilling, right — manipulated the California electricity market. While Enron rolled in the dough, the only things rolling through the California countryside were blackouts.

Well, how interesting that ten-plus years later we revisit Houston to see the name Enron invoked once again in a case alleging manipulation of the electricity markets right there in Texas. Let’s navigate as the Courthouse News Service recently reported:   (more…)

Uncle Sam’s Protecting Economic Data: A Fallacy

Posted by Larry Doyle on August 6th, 2013 9:34 AM |

Hardly a day goes by without another piece of mind numbing news regarding the assault on the integrity of our markets.

With the folks in Washington and their friends in the media having jumped in bed with those who truly run our financial markets, news that may have shocked the public prior to our economic crisis now comes and goes with barely a ripple.

Make no mistake, though, the corrosive waves of corruption that emanate from the incestuous relationship between the financial industry and those charged with protecting the public interest comes with a very heavy cost.  (more…)

More Market Manipulation: Wall Street Out of Control

Posted by Larry Doyle on August 2nd, 2013 5:17 AM |

First it was Libor, then currencies, then commodities. Now the market manipulation game extends to a vehicle known as ISDA fix that is used as a benchmark for pricing only trillions of dollars of worth of transactions.

Dodd-Frank reformed Wall Street, right?

Bloomberg reports, Swaps Probe Finds Banks Manipulated Rate at Expense of Retirees,

U.S. investigators have uncovered evidence that banks reaped millions of dollars in trading profits at the expense of companies and pension funds by manipulating a benchmark for interest-rate derivatives.

Recorded telephone calls and e-mails reviewed by the Commodity Futures Trading Commission show that traders at Wall Street banks instructed ICAP Plc brokers in Jersey City, New Jersey, to buy or sell as many interest-rate swaps as necessary to move the benchmark rate, known as ISDAfix, to a predetermined level, according to a person with knowledge of the matter. (more…)

Manipulating Electricity: When Will Madness End?

Posted by Larry Doyle on July 22nd, 2013 7:25 AM |

Do readers recall how the morally depraved crowd at Enron manipulated the electricity markets so aggressively in California in 2000 as to force the state to implement rolling blackouts?

I am assuming there are some in our audience who not only remember the rolling blackouts, but actually lived through them.

Market manipulation of a basic good or service is a destructive force like none other. Many in America and around the world will dismiss the manipulation that goes on in a structured products market, such as mortgage-backed securities or auction-rate securities. They will similarly dismiss the clandestine dealings within the credit derivatives space or the arcane world of high-frequency trading.  (more…)

Newedge Market Manipulation: Joe Saluzzi Exposed This Years Ago

Posted by Larry Doyle on July 11th, 2013 7:51 AM |

I awake this morning and see a headline of a lead story on The Wall Street Journal jump out at me.

Brokerage Faces Record Fine

My interest is piqued.  What might it be? I quickly peruse the commentary and see words and phrases used that should concern any investor and/or trader including: manipulate U.S. markets . . . risks to the financial system . . . damage investor confidence . . . considerable systemic risk to the marketplace.

I then read of a new word for front-running, that is, “spoofing” and how traders utilized wash trades,”in which a firm acts as buyer and seller in the same trade to distort market activity. The practice can create the illusion of heavy trading volume that lures firms that are tracking for such activity.”  (more…)

Forex Manipulation: Add It To The List

Posted by Larry Doyle on June 12th, 2013 10:00 AM |

Is it possible to manipulate the largest market in the world, that being, the foreign exchange market?

Well, if it is possible to manipulate the setting of overnight interest rates (i.e Libor et al) impacting trillions of dollars of derivative contracts and the pricing of equities (i.e. via high frequency trading), we should not be surprised that those on Wall Street are also able to manipulate prices within the foreign exchange markets . . . . and have been doing so for a long time.

In what might only be defined as another nail in the coffin of free and fair markets, Bloomberg exposes the stench of this manipulative activity. (more…)

Here Come da Feds: New Trick to Manipulate Market

Posted by Larry Doyle on March 6th, 2013 7:20 AM |

I recently received a message from friends in the market apprising me of the newest “trick” being used by those who like to move/manipulate markets. What are the wizards up to?

Let’s get the inside scoop on what is really going on within our equity markets from our Sense on Cents Hall of Famers Joe Saluzzi and Sal Arnuk at Themis Trading. They recently sent out the following:

From Themis Trading: A new phenomenon is sweeping the equity market. It’s called the Fake Tweet Mini Flash Crash. (more…)

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