I hope you read Secrets the Stock Market Doesn’t Want You To Know. This is about secret #2.
I just read a Reuter’s article makes mention of an SEC inquiry and “sub-penny” pricing in the same text. It explains the SEC’s reasons that quote stuffing wasn’t an issue until the flash crash in May. The first question I have is “Why now?”. Even though CFTC Commissioner Scott O’Malia said; “… we should consider addressing this under new (highlights are the author’s) disruptive trading practices authority”, they have had the authority to police these things forever. At least since 2004, when they last had a chance to address electronic trading deficits.
The second question is; “What is the solution going to cost us?”. We still have the same problem that there is still a revolving door of employment that leads to the SEC from the big investment firms utilizing these methods and back.
It makes me wonder: Since the big prop (proprietary) trading in these big firms aren’t going to be able to use these methods to their best advantage wouldn’t they try to use this as an opportunity to disadvantage the little guys who would benefit from the firms’ loss of this tool’s use. That’s us, folks! Even though it looks a little different I will suspect that the SEC and others that hold their reins of power are still hoping to use the game of Three Card Monte once again.
Just call me suspicious. It is good that others are talking about this. Because talking about it is like turning on a light in a room infested with cockroaches. We may not be able to do much about at this minute but it could motivate us to use a good bug spray. We’ll just have to wait to see if the SEC is the one turning on the light or if they’re one of the cockroaches.
Quote stuffing a focus in flash-crash probe | Reuters
Tagged as:
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quote stuffing,
SEC,
secrets,
sub-penny pricing.
Quote Stuffing, Sub-penny Pricing, Flash Crash, and Secret #2
by Patrick on September 2, 2010
in Commentary, Education, Politics, Stock Market, Trading
I hope you read Secrets the Stock Market Doesn’t Want You To Know. This is about secret #2.
I just read a Reuter’s article makes mention of an SEC inquiry and “sub-penny” pricing in the same text. It explains the SEC’s reasons that quote stuffing wasn’t an issue until the flash crash in May. The first question I have is “Why now?”. Even though CFTC Commissioner Scott O’Malia said; “… we should consider addressing this under new (highlights are the author’s) disruptive trading practices authority”, they have had the authority to police these things forever. At least since 2004, when they last had a chance to address electronic trading deficits.
The second question is; “What is the solution going to cost us?”. We still have the same problem that there is still a revolving door of employment that leads to the SEC from the big investment firms utilizing these methods and back.
It makes me wonder: Since the big prop (proprietary) trading in these big firms aren’t going to be able to use these methods to their best advantage wouldn’t they try to use this as an opportunity to disadvantage the little guys who would benefit from the firms’ loss of this tool’s use. That’s us, folks! Even though it looks a little different I will suspect that the SEC and others that hold their reins of power are still hoping to use the game of Three Card Monte once again.
Just call me suspicious. It is good that others are talking about this. Because talking about it is like turning on a light in a room infested with cockroaches. We may not be able to do much about at this minute but it could motivate us to use a good bug spray. We’ll just have to wait to see if the SEC is the one turning on the light or if they’re one of the cockroaches.
Quote stuffing a focus in flash-crash probe | Reuters
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Tagged as: flash crash, quote stuffing, SEC, secrets, sub-penny pricing.