Market Structure Before And After: Hypocrisy Defined
Now that everyone is firmly in the "HFT is bad" bandgwagon, not to mention that every single blogger, commentator, journalist, and other fly by night "expert", especially those who were wildly mocking Zero Hedge as it labored tediously to write the script for the latest episode of the Hills, seems to suddenly have an erudite and extensively hyperlinked opinion on HFT and market structure, we thought it would be funny to expose the hypocrisy of all those whose opinion is like a windsock to whichever way the wind of public discontent blows. Obviously here we focus on those who opinion actually matters, not the name droppers who are desperate for page views. And, not surprisingly, we start with that finest example of crystallized intelligence in its purest form, Mary Schapiro.
***Before and after - the SEC
Before: May 6, 2010, 9AM, SIFMA Compliance and Legal Keynote Address, Mary Schapiro, Chairman, SEC
"In particular, I look forward to discussing the consequences of high-frequency trading...where we sometimes go wrong is in trying to react to and respond to every change or innovation, often before its significance is known - or after it has become too apparent."
After: May 6, 2010, 7PM
"The SEC and CFTC are working closely with the other financial regulators, as well as the exchanges, to review the unusual trading activity that took place briefly this afternoon." SEC press release
***Before and after - Academics (Professor James Angel, Georgetown)
Before: April 30, 2010, comment on SEC Equity Market concept release
"The equity market structure is working better than ever, so don't mess it up."
After: May 10, 2010
"This is a wake up call and markets are dangerously unprotected..."(quoted in Financial Times)
***Before and after - Exchanges (Direct Edge)
Before: April 28, 2010 , comment on SEC Equity Market concept release
"Direct Edge believes that, on balance, the evolution of trading strategies and intermediary services now classified as 'high-frequency trading' has brought material benefits to our nation's equities markets."
After: May 7, 2010, William O'Brien, CEO of Direct Edge, "It's something that no one should be proud of..."
Courtesy of RTL
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