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HomeSEC ‘Failure to Regulate’ NYSE on HFT
Posted by Larry Doyle on April 2nd, 2014 9:11 AM |
The high frequency topic is all the rage these days and with good reason. Free market capitalism is dependent on free and fair markets.
Are our equity markets free and fair these days? By my definition they are not.
With people on both sides of this topic voicing their strongly held opinions, more and more of the onus is placed on those regulating the markets to see that the playing field is level for all participants. I think that is a huge part of the problem and wrote as much the other day in asserting, “The fact that the FBI states that it is working in concert with the CFTC, SEC, and FINRA in this investigation should be a cause of very real concern.”
A recent commentary in Crain’s Business highlights this very point: (more…)
FBI Investigation of Wall Street HFT But “‘Big Boys’ Always Seem to Get Away with Murder”
Posted by Larry Doyle on April 1st, 2014 10:18 AM |
News late yesterday that the FBI is investigating high frequency trading operations for potential securities violations including insider trading sent a shock wave through the industry.
As well it should.
All too much evidence from respected industry insiders over the last five years has painted a picture of massive front running via HFT disguised as providing liquidity. Front running and collusion are supposed to be illegal practices.
To think that these conspiratorial behaviors are the work of a few rogue traders or computer programmers is ludicrous. Yet I remain very suspect that we will be fed a diet of just such nonsense as an indication that the Feds are going to clean up this practice.
Why am I so suspect? A number of reasons, including: (more…)
