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Clarification From Charles Schumer On Flash Ban

Tyler Durden's picture





 

U.S. Senator Charles E. Schumer (D-NY) released the following statement regarding SEC Chairman Mary Schapiro’s confirmation that she is seeking action on “flash trades,” pending the full Commission’s approval and a public comment period:

"We of course expect the SEC to follow its procedures for the implementation of this new rule, but there is every expectation the Commission will vote for it. The bottom line is, this practice will be eliminated."

--Senator Charles E. Schumer

 


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Tue, 08/04/2009 - 15:47 | Link to Comment Anonymous
Tue, 08/04/2009 - 15:52 | Link to Comment Veteran
Veteran's picture

Crime is the disease

 

Cobretti, I mean ZH, is the cure

 

Sorry, couldn't resist

Tue, 08/04/2009 - 17:03 | Link to Comment Anonymous
Tue, 08/04/2009 - 20:25 | Link to Comment erich
erich's picture

You are killing the mood!  There is a CONSPIRACY here, run with it!

Tue, 08/04/2009 - 21:01 | Link to Comment MinnesotaNice
MinnesotaNice's picture

I really wish the SEC could do some original investigative work themselves that leads to a change in regulation that they initiate... rather than simply reacting to what is put before them... they certainly are not a dynamic, nor especially intelligent organization... they seem to spend the majority of their time out-maneuvered by someone or something.

Tue, 08/04/2009 - 15:47 | Link to Comment Anonymous
Tue, 08/04/2009 - 15:50 | Link to Comment D.O.D.
D.O.D.'s picture

Your Shorts!!! Bring out your shorts!!!

Tue, 08/04/2009 - 16:08 | Link to Comment cougar_w
cougar_w's picture

Old Day Trader: "I'm not short."

The FED: "Err... he says he's not short."

Goldman Sachs: "Well, he will be soon."

Old Day Trader: "I'm feeling long SPY."

GS: "No you're not, you'll be stone short in a moment."

The FED: "Well, I can't take him like that. It's against regulations"

Old Day Trader: "I don't want to go all-in cash."

GS: "Oh, don't be such a baby."

The FED: "I can't take him."

GS: "Oh, do me a favor."

Old Day Trader: "I think I'll go long in PM."

GS to Old Day Trader: "You're not fooling anyone, you know."

Old Day Trader: " I feel happy. I feel happy."

The FED hits Old Day Trader with a an abrupt change in monetary policy.

GS: "Ah, thank you very much."

The FED: "Not at all. See you on Thursday."

GS: "Right."

Tue, 08/04/2009 - 16:28 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

That must be Lloyd Blankfein?

How'd you know that?

He hasn't got shit all over him!

Tue, 08/04/2009 - 15:50 | Link to Comment GoldmanSux
GoldmanSux's picture

Plus, I would like to know who approved it, and what procedures/methodologies/hearings were used. If they approved it without the above, they can eliminate it today.

Tue, 08/04/2009 - 15:51 | Link to Comment Anonymous
Tue, 08/04/2009 - 15:56 | Link to Comment peterpeter
peterpeter's picture

Feel free to peruse www.sec.gov and do a search.  This did not just happen one day...

Tue, 08/04/2009 - 16:11 | Link to Comment . . .
. . .'s picture

True, but the SEC did put Goldman's SLP program in place effective immediately without a notice and comment period.  If Goldman gets guidance ASAP, why shouldn't Senator Chucky S?

Tue, 08/04/2009 - 16:09 | Link to Comment . . .
. . .'s picture

Very true.  If the SEC feels it is appropriate, they can issue temporary guidance that is effectively immediately without a notice and comment period.  Along with a proposal of the identical rule as final guidance, that becomes effective after the notice and comment period and hearing (if any).

Tue, 08/04/2009 - 15:50 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

This is nothing more than a fucking game show for the general public ... They know they are gonna lose in the next elections, and they know that they have to do something to remain in W.DC ... i don't believe nothing they say, and the latest game that is being played is the one between Rahm, Issa and the dude from Arizona ... and the SEC will " vote " on this as long as they can so they present themselves to the public as if they actually have some power ...

Tue, 08/04/2009 - 15:51 | Link to Comment Anonymous
Tue, 08/04/2009 - 15:52 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:01 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

Goldman couldn't care less about banning this stuff ... they are already focused on their next scheme ... Climate exchange and trading carbon credit .... they have been setting the grounds based on blatantly un-true fairy tale of global warming since mid-90s ... and to them that cash cow is worth app. 2 trillion a year so they don't even break a sweat about this ...

Tue, 08/04/2009 - 16:04 | Link to Comment Project Mayhem
Project Mayhem's picture

precisely

Tue, 08/04/2009 - 16:18 | Link to Comment . . .
. . .'s picture

Goldman has bipartisan support for their carbon emmisisons trading, for example Senators Boxer and Ensign.

It is a strange world we live in when the people fighting GS' carbon trading are regarded as extreme left (Dorgan and Sanders) or extreme right (demint and inhofe).

Tue, 08/04/2009 - 16:23 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

that's the kind of game they play ... since they have no valid argumentation to support global warming, they discredit and marginalize the people who oppose them with name calling and funding their political opponents when the election time comes ..

Tue, 08/04/2009 - 17:02 | Link to Comment ZerOhead
ZerOhead's picture

Finally something I know something about. Thirty years of global satellite temperature measurements and EXACTLY .001 degree C. warming to June of 2009. Remember these multi-million dollar thermometers have been flying since before global warming was an issue. Meanwhile Hansen at NASA GISS still measures temperatures in parking lots and actually adjust these temperatures up further. Google UAH MSU Global Temperature Anomally June 2009 if you don't believe a stupid cat!!

Tue, 08/04/2009 - 17:20 | Link to Comment Anonymous
Tue, 08/04/2009 - 15:52 | Link to Comment buzzsaw99
buzzsaw99's picture

Piss on Schumer. GS already made their nut this year. Schapiro is Goldman's bitch.

Tue, 08/04/2009 - 15:54 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:35 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:00 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:00 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:01 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:09 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:13 | Link to Comment jdoo
jdoo's picture

Tried to find a post where this comment may be more relevant but I failed.

Can anyone explain what the hell is going on with GGC?

http://www.reuters.com/article/governmentFilingsNews/idUSN0413151520090804

http://www.google.com/finance?q=ggc

Based on my read these shares should be nearly worthless, not +250% from 5days ago close....

Tue, 08/04/2009 - 16:18 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:23 | Link to Comment mule65
mule65's picture

15% shares short = squeeze.

Tue, 08/04/2009 - 18:14 | Link to Comment Anonymous
Wed, 08/05/2009 - 11:39 | Link to Comment Gilgamesh
Gilgamesh's picture

They restructured debt and amended credit agreements last week.  So, no BK - at least in August.  And you're left with no more stock sellers, and lots of shorts to cover/bought-in.

Tue, 08/04/2009 - 16:15 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:20 | Link to Comment Comrade de Chaos
Comrade de Chaos's picture

well, check this out:

" Aug. 4 (Bloomberg) -- American International Group Inc., the insurer rescued by the U.S. government, will release second- quarter results without a conference call this week as Chief Executive Officer Edward Liddy prepares to step down."

Tue, 08/04/2009 - 16:28 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:31 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:36 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:32 | Link to Comment Anonymous
Tue, 08/04/2009 - 17:03 | Link to Comment Comrade de Chaos
Comrade de Chaos's picture

September 3: Truth

October 3: Survival

January 3: Triumph

p.s. I doubt it's a diligent practice to evaluate returns on bi-weekly bases.

Tue, 08/04/2009 - 20:02 | Link to Comment Anonymous
Tue, 08/04/2009 - 17:37 | Link to Comment Anonymous
Tue, 08/04/2009 - 17:49 | Link to Comment Anonymous
Tue, 08/04/2009 - 17:53 | Link to Comment KOZ
KOZ's picture

This sounds a lot like it is coming from someone running for reelection very soon....

http://www.opensecrets.org/politicians/summary.php?cid=n00001093

 

"We of course expect the SEC to follow its procedures for the implementation of this new rule, but there is every expectation the Commission will vote for it. The bottom line is, this practice will be eliminated."

--Senator Charles E. Schumer

 

 

"We of course expect the SEC to follow its procedures for the implementation of this new rule, but there is every expectation the Commission will vote for it. The bottom line is, this practice will be eliminated."

--Senator Charles E. Schumer

Tue, 08/04/2009 - 18:01 | Link to Comment D.O.D.
D.O.D.'s picture

Hello.... if anyone is reading...

The M$M keeps referring to Flash Trading as a "sub-set" of HFTPs, but I would argue the correct phrase would be, Flash Trading is a function, among thousands of funtions, of an HFTP. 

Please correct me if I am misunderstanding something...

Tue, 08/04/2009 - 18:02 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

nope, you got that right, its just one of components of HFT, but nevertheless, a significant one ...

Tue, 08/04/2009 - 18:00 | Link to Comment D.O.D.
D.O.D.'s picture

stupid lag....

Tue, 08/04/2009 - 18:12 | Link to Comment Anonymous
Tue, 08/04/2009 - 19:41 | Link to Comment Anonymous
Tue, 08/04/2009 - 21:16 | Link to Comment Anonymous
Tue, 08/04/2009 - 21:22 | Link to Comment casey
casey's picture

Hate to rain on the parade, but didn't Matt Taibbi write in 'The Great Takeover' about the EU threatening tough regulation:

'The situation worsened in 2004, in an extraordinary move toward deregulation that never even got to a vote. At the time, the European Union was threatening to more strictly regulate the foreign operations of America's big investment banks if the U.S. didn't strengthen its own oversight. So the top five investment banks got together on April 28th of that year and — with the helpful assistance of then-Goldman Sachs chief and future Treasury Secretary Hank Paulson — made a pitch to George Bush's SEC chief at the time, William Donaldson, himself a former investment banker. The banks generously volunteered to submit to new rules restricting them from engaging in excessively risky activity. In exchange, they asked to be released from any lending restrictions. The discussion about the new rules lasted just 55 minutes, and there was not a single representative of a major media outlet there to record the fateful decision.

Donaldson OK'd the proposal, and the new rules were enough to get the EU to drop its threat to regulate the five firms. The only catch was, neither Donaldson nor his successor, Christopher Cox, actually did any regulating of the banks. They named a commission of seven people to oversee the five companies, whose combined assets came to total more than $4 trillion. But in the last year and a half of Cox's tenure, the group had no director and did not complete a single inspection. Great deal for the banks, which originally complained about being regulated by both Europe and the SEC, and ended up being regulated by no one.'

 

I hope this isn't just a pill to calm the masses. 

 

Be vigilant and don't trust the SEC or the government.

 

Tue, 08/04/2009 - 22:04 | Link to Comment Sqworl
Sqworl's picture

I hate Chuck Schmuck...let's make him go away.  Goldman please make him an MD so he can continue steal with transperancy!

Tue, 08/04/2009 - 22:44 | Link to Comment sellside_pov
sellside_pov's picture

From Joe Ratterman, one of the original opponents of flash orders:

Misstatement 1: Flashed orders create unique front-running opportunities.

Misstatement 2: Flashed orders are used solely by high speed trading firms.

Misstatement 3: Flashed orders disadvantage retail investors.

Misstatement 4: Exchanges intended to flash quotes solely to their own members.

It needs to be said again - there are valid reasons to review, debate, and even ban flashed orders. I listed six of those reasons in our last newsletter. It's equally important to make clear, however, that there are accusations being circulated recently that are distorting the perception of how these systems actually work. The difference between the real concerns and the hype may be difficult for people outside of our industry to discern, so we felt it was important to shed some factual light on this topic.

There is grave danger in allowing misstatements and myths to perpetuate, and I hope that we have been able to clear up some of the confusion here.

http://www.advancedtrading.com/exchanges/showArticle.jhtml?articleID=218...

Wed, 08/05/2009 - 00:45 | Link to Comment Anonymous
Wed, 08/05/2009 - 01:37 | Link to Comment Anonymous
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