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Goldman Sachs Principal Transactions Update: 798 Million Shares And An Overall PT Market Update
There has been (finally) a lot of attention to program trading, a theme Zero Hedge has been focusing on for 4 months. This week, the NYSE finally switched over to its new methodology of providing program trading, which, as Zero Hedge announced previously, involves the , HFT of the DPTR and the delay/cancellation of implementation of "the proposed redefined program trading account type indicators (J and K)."
While Zero Hedge is comparing this data with historical ones, it is notable that the weekly public disclosure again provides Index Arbitrage stock data partitioning. We were curious why this is included and sent a query to NYSE's Ray Pellecchia. Here is his response:
"Tyler -- Index arbitrage has been reported since the release was started in 1988; the reason at the time was that there was discussion that index arbitrage accelerated the market's fall in the crash of October 1987, so it was determined to provide some additional disclosure on it."
It is good to know that the exchange is concerned about a data set that was relevant and deemed important the last time the market collapsed 20% in one day, and will be included going forward in weekly program trading disclosure.
Also, as it has been a while since we did a longitudinal analysis on NYSE program data, I provide an updated chart of several key data segments, all of which solidify the conclusion that Goldman's domination of NYSE program trading started exclusively with the inception of the NYSE mandated and SEC approved Supplemental Liquidity Provider program.
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I think the chink above means nelson mandela.
Still; he has a point the old bastard is a convicted terrorist.
Looks like it's time to put the math questions back in.
I don't see the correlation what so ever ZH? Looks like Matt Taibbi was wrong as well...
Signed Ben Dover
forget about it ... I made a mistake
Nice work and excellent efforts TD.
Additionally, a thank you to Mr. Pellecchia for the courtesy of responding to Zero Hedge.
Agreed, Thanks baby! Credibility begins with open discourse
Currently, I'm long chimps with trend detection capabilities and lightning-fast reflexes. "Green signal! Hit it monkey! HIT IT!"
TD,is the big dip on the 3 rd chart in the GS principal trading at end of june, related to the theft of their computer codes or was that the week that the NYSE forgot to include them in the update?
It is actually relative to facilitation and agency, which that week alone saw a huge spike for GS.
http://www.nyse.com/pdfs/PT0622-0629.pdf
Thanks Tyler.
So on the last week of the last month of Q2, clients that had been treated to 3ms of strip clubs, lap dances and golf trips owed GS some commission $$? I guess it is better to do all the business in one week rather than over a 3 ms period (getting front run for a week better than for 3ms)?
You are doing some amazing stuff here. Please be careful.
Any correlation between that selloff we had to 870 S&P and the lack of GS PT trading?
Does any of this mean anything for future PT trading?
excellent question.
my only suggestion is that you direct it to the proper respondents: Messrs. Summers, Geithner, or Bernanke.
Apocalypse Now- Excellent, the comment I attempted to reply to has been wiped out. Clearly with posts like the one just wiped out, your opposition is attempting to discredit this blog and by association all bloggers posting here with planted misspelled, crazy, racist, and ethnic baiting. Presumably, one of the clowns on a "financial news" show wants to cherry pick a deranged planted comment or a cog in the Financial System is threatened. Expect more of this if B.O.'s planned head of regulations gets traction - he stated that blogs and bloggers needed to be held accountable (so therefore an owner of a blog would need staff to look for the trolls and planted comments and quickly wipe them off or face fines, penalties, or worse). I would like to think the bloggers here appreciate diversity, most importantly of ideas - we articulate these in black & white (font contrast).
Thanks T.D.
just look at the chart, goldilocks has been manipulating it all along: short the market when Obama gets elected, short the market in Obama's first days/weeks of office, then say "hey look, we can help you out, let us (and the FED/Treasury) bid this market up. All the shitty banks who need more money get to issue equity, with no added debt to the "taxpayer"; you look good, because all those fuckers on FOX can't rip you for the stock market being in a rut, also you get to pass whatever bill you want (this is where Rahm gets excited). All we need is funds with unlimited backing from the US Treasury to do whatever it takes." Everyone's happy.
So, on the second chart it looks like the lines would add up to more than 100%. Is this correct?
What happened on 6/26? and why on earth to both SC and UBS come roaring into the picture? Swiss invasion of PT?
So the market is now in the hands of very few companies to do what they please with it... up down and all around... fish for stops, encourage shorts, get out longs at bad prices... the ultimate casino with BIG chips to be taken and no lose cos you are back stopped by the FED if you lose to a big winner.
The house never ever loses at this game as all house losses are paid for by the taxpayer and all losses are paid for by the taxpayer
i am flat out SHOCKED that these numbers didn't go down much, considering they don't include PT volume executed in other market centers. GS's numbers make sense, since their SLP activity is on the NYSE.