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NYSE Discusses Implications Of Prop Trading Ban
An interesting observation from NYSE's Duncan Niederauer, who is convinced that "separating prop trading, from market making business, from customer facilitation businesses, from principal business" will be next to impossible. For those not on Duncan's side of the trade, we are hopeful that Paul Volcker is just as aware of all this and much more. Although should Obama's proposal be defanged by Geithner's intellectual challenged henchmen when it goes through the Treasury for implementation, Duncan may just be on to something, thus precluding Obama's lofty goal to actually moderate the taxpayer funded risk-taking activities at banks. As is well-known, Niederauer is well-connected within the political circles of DC, where his opinion on what is proper for capital markets carries abnormal sway, so one may wonder, was Obama aware of this all along and was once again merely stringing the morts along, in his epic and unrelenting journey from one TV appearance to another.
From Bloomberg earlier:
In the meantime, based on NYSE's most recent program trading data, Goldman's ratio of agency to principal trading was a solid 20x. We can't wait to see how these two numbers will flip to indicate the proper ratio for a client-facing/flow-based investment bank that does not see the need to trade over 400 million shares in program trading for its prop account.
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Looks like the bulls and bears decided on today was an excellent day to meet in the alley.
These bears look pissed too..I think I saw one with numbchucks. Reminds me of that day on October.
Who else is ready to put their DOW 10000 hats back on?
Who are the bulls and who are the bears seems to be a valid question at this point. Ellen Brown and Max Keiser point to a GS Mexican standoff in this very cool article http://www.opednews.com/articles/2/BATTLE-OF-THE-TITANS-JPMO-by-Ellen-Br...
Until the law is enforced, this investor will says, "FUCK FRAUD STREET!"
With tremendous earning potential and a full life ahead no banker or broker gets a cent.
I hope you traders weep in the unemployment lines, you deserve all the bad things that have happened and will happen to you.
I encourage everyone and their mother to sell sell sell until all these thugs are behind bars.
we ought to ask ourselves what kind of benefits the prop traders bring to the society. These traders include those Fast Money guys too. reasonable people can disagree but I thought janitors bring more benefit than those traders.
What are your thoughts on this meeting gentleman? Is it just your run of the mill "Masters of the Universe" meeting or are they devising a plan in which to best assist the middle class of the global economy?
http://business.timesonline.co.uk/tol/business/economics/wef/article7005...
You're kidding, right? The middle class are the "worker bees" of the global economy.
New Wall Street 2 Trailer out - if you are into that sort of thing (hand raised)
90 seconds... Gordon is back b****
http://www.fundmymutualfund.com/2010/01/wall-street-2-money-never-sleeps-new.html
Funny how Gordon's exploits in the 80s now look like ordinary even to a lower level Goldman junior trainee. Will be funny to see how Oliver Stone makes him into the good guy.
What is the reporting period, and I thought you couldn't get this data anymore. I wish you still published it on a regular basis
Yeah I thought GS called up NYSE and stopped the info from being reported after they went from most active to disappearing from the list during that large selloff after their code was stolen?
love the intro "turned the corner" "confused about GDP"
Like asking a blind driver about traffic..
As we all know, the banking and investment industries were non-existent prior to the repeal of Glass–Steagall, so Duncan must be right...
"stringing the morts along, in his epic and unrelenting journey from one TV appearance to another"
He would have nothing to do if not this.
Like today, announcing big increase in nuclear power plant loan guarantee program -- knowing it will not cost anything because they won't allow any meaningful amount of nuclear capacity to be built. So he will look supportive with the right hand, but suppress projects with his left hand. And have culpapable deniability with everyone.
I was watching some discussion about banks and how they are necessary for society and good for people. I thought... they get paid massive amounts of money to take risks with other peoples money and are not in physical danger whilst they do this. Nurses, doctors, firefighters, police men and women, soldiers etc., etc., put their health and lives on the line in many circumstances. These are the best of society and the most beneficial to it, yet why should they be paid a fraction of what a bankster gets for taking no risk with their own health or money?
Because people will pay for it.
The problem is the market for bankers' services is hugely distorted by various and sundry regulations, subsidies, laws, the Fed, etc ad nauseum.
So the way to make it 'fair' is either - distort all markets equally (good luck with that), or free them.
Speaking of doctors: They also take an inordinate amount of flak over compensation when comparably they perform a more important function (as you stated).
Depending on what you care about of course...
Racer... sorry about the late post but just in case you check back.
Other than Doctors (fairly and well paid IMO), society's elite do not participate in these professions. "The best and the brightest" are ensured entry in the elite professions through the "obscene" cost of the best schools (which only they can afford), securing continuation of the American elitist class system of the coddled, spoiled, and self absorbed, incapable of understanding (or caring about) the negative consequences of their actions on society.
The power is so absolute that (amazingly) those on your list are the "foot soldiers" leading the protests (Teabaggers, etc) against any attempt to correct the system (they've been conditioned to fear any who would change the system... Big Government, Socialist, Leftists, and the ultimate sin... Liberal or Progressive)!
How's the system working for you so far?
And it is so impossible, how did they manage to do it for all those years before the repeal of Glass-Steagall?
under.table
Interesting that since the repeal of Glass-Stegall, the things that were done for so many years, since roughly 1934 to 1996, have suddenly become 'impossible.'
YO!
Cramer just came on and pumped Citigroup saying it's a buy!!!!!!!!! Wasn't it a sell 6% lower & 3 days ago?
WTF??? God that guy is an asstard.
At least he makes you think as opposed to most things on tv - i.e. thinking to yourself "WTF is he thinking?".
If you've already figured out what he's thinking it could get a little boring though.
All Cramer thinks is: "$$$$$" & "Suckers."
very simple - commercial banks cannot have anything to do with markets - go get funding in the capital markets like a big boy
Actually the solution is none of the above....
THE ANSWER....
DEFRAGMENT the markets ie the BATS model....
A worldwide direct access electronic exchange....
available in the language and currency of choice....
No outside matching...dark pools...etc...
All put in the open...and on the exchange....
Make transactions less expensive....ie 20 cents per hundred units....(this is available today)
Make the bid ask even tighter....to make buying and selling more efficient....
Make it mandatory that all orders are good for one second....
No minimum size accounts....and simple 4:1 margin.....all asset classes....for overnight and intraday....
Account size limitations regarding share size....the exchange needs to serve RETAIL just as efficiently as Institutional such that RETAIL cannot be gamed....
All securities information needs to be in a wiki based format in the language of choice....and not from slanted pundits....
Short sells....no uptick rule....once the total outstanding share number is reached ....no more supply...
This is made simple by electronic tag....and size cannot be breeched by large accounts....
Electronic regulation mde simple....this is self explanatory.....Defragmentation allows ease of regulation....Appoint a new electronic exchange regulator to replace the SEC....
Make listing/legal costs more efficient....
Let there be no taxes of any kind on any type of securites....
Next ....watch the next GOLDEN AGE unfold for the US and the world....
I challenge any economist or politician to better this solution....
As far as market making....the more the better ....the better the ecn structure the better....make it even more efficient.... Market making must be consistent with the customer needs which is simply more transaction efficiency....
great look, TD.
NYSE program been stuck on 25.1% i believe for weeks now. nothing of import just odd.
such a fun day today with volume finally cementing the biggest week of since Mar / Nov lows.
Duncan loves to talk his flawed biz model--but he is a Gordon Gekko intern compared to Dick Grasso--and Grasso got to keep his $$$ pile, and got out ahead of the posse--remember that Duncan.
LOL Wedbush does 100% prop business 0 Agency? Will firms like this one be shut down completely?
I am totally sick of this argument. The only reason Mr. Duncan says it is "impossible" to separate prop trading from facilitation trading from agency trading is because he is a product of Goldman Sachs. Goldman has been at the vanguard of all of the market "innovations" that have brought us to our current pathetic state. We all suffer at the hands of the MESSAGE TRAFFIC MAFIA that masquerades as liquidity providers.
The technology has not made better markets unless your definition of better means run ahead of everything in sub micro second time. Wake up everyone. You can moan all you want about how bad open outcry markets were, but I know from my own experience this is downright criminal. We have taken a giant step backwards.