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NYSE Halts Transparency, Feels Goldman Program Trading Disclosure Is Unnecessary

Tyler Durden's picture


In a move set to infuriate and send many Zero Hedge readers over the top, the NYSE has taken action to make sure that nobody will henceforth be able to keep track of the complete dominance that Goldman Sachs exerts over the New York Stock Exchange. This basically ends our weekly Program Trading updates disclosed every Thursday indicating that Goldman has singlehandedly captured all of NYSE's program trading.

In an information memorandum released on June 24 (09-31), the NYSE Regulation team has announced the Decommissioning of the Daily Program Trading Report (DPTR).

From the memo:

The New York Stock Exchange LLC (“NYSE”) will be decommissioning the requirement to report program trading activity via the Daily Program Trading Report (“DPTR”), which was previously approved by the Securities and Exchange Commission (the “Commission”).1 The last trade date for which member organizations will be required to file the DPTR with the Exchange will be July 10, 2009 and therefore the last required date to submit the DPTR will be July 14, 2009.

In the 2007 rule filing, the Exchange proposed to eliminate DPTR. The 2007 filing noted that there was some duplication between the DPTR data and the audit trail information that member organizations provide to the Exchange via account-type indicators at the time that they submit program trades to the Exchange... [A]fter consulting with the SEC, the Exchange announced that it would delay implementation of the two redefined account type indicators, and pending such implementation, member organizations would be required to continue filing the DPTR with the Exchange. The current delayed implementation date of the redefined J and K account type indicators is June 30, 2009. Accordingly, the Exchange still requires member organizations to submit DPTR.

The Exchange has filed with the SEC to implement the decommissioning of the DPTRrequirement following the July 10, 2009 trade date. Accordingly, the last required submission of the DPTR will be on July 14, 2009, which is the second business day after the last trade date for which the DPTR is required.

In addition, in connection with the decommissioning of the DPTR, the Exchange will not be implementing the proposed redefined program trading account type indicators (J and K) and will continue to use the existing J and K audit trail account types. Upon further analysis and based on industry input, the Exchange has determined that these redefined account type indicators do not enhance the regulatory audit trail because the proposed redefined J and K could subsume some of the other, more granular account type indicators that the Exchange currently receives. Accordingly, the Exchange has determined not to redefine the J and K account types in the manner previously proposed, and is instead leaving the J and K account-type definitions unchanged.

The Exchange further notes that it will use the existing account type indicator data – which captures program trade information for those orders sent to and executed on the Exchange – to report to the Commission on a weekly basis the program trading statistics for portions of program trades executed on the Exchange. Accordingly, beginning on July 23, 2009, the Exchange will provide the Commission with its weekly statistics on program trading based on account type indicator data rather than DPTR data. Similarly, at the same time, the weekly statistics regarding program trades that the Exchange provides to media outlets will also be derived from account type indicator data rather than the DPTR.

Basically this is the beginning of the end of unmodified data transparency. Going forward the NYSE will provide whatever data it feels comfortable, after sufficient internal "audits," and media outlets such as Zero Hedge, which had presented its millions of readers the only data point about Goldman's complete encroachment of not only NYSE but Program Trading, will be henceforth unreliable and likely will present no useful information at all.

This is a travesty, as well as a complete obliteration and a mockery of the move for transparency that the Administration, Regulators and Exchanges have been posturing they support.

We advise all readers to contact the provided staff on the memorandum and voice your incredulity with this brazen move to completely obfuscate Goldman's behind-the-scenes take over the world's biggest stock exchange.

Robert Airo, Senior Vice President, NYSE Euronext at (212) 656-5663 or
Aleksandra Radakovic, Vice President, NYSE Regulation at (212) 656-4144



hat tip Greg


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Tue, 06/30/2009 - 13:39 | Link to Comment Anonymous
Tue, 06/30/2009 - 13:40 | Link to Comment Anonymous
Tue, 06/30/2009 - 13:41 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:11 | Link to Comment Anonymous
Tue, 06/30/2009 - 13:42 | Link to Comment Anonymous
Tue, 06/30/2009 - 14:38 | Link to Comment Anonymous
Tue, 06/30/2009 - 13:42 | Link to Comment Woodshedder
Woodshedder's picture

Aleksandra didn't answer her phone for me, but I left her a message.

Tue, 06/30/2009 - 13:43 | Link to Comment Anonymous
Tue, 06/30/2009 - 13:45 | Link to Comment zeropointfield (not verified)
Tue, 06/30/2009 - 13:48 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:08 | Link to Comment Anonymous
Tue, 06/30/2009 - 13:50 | Link to Comment mezcal
mezcal's picture

'bout time to take my ball and go home.

Tue, 06/30/2009 - 13:52 | Link to Comment Anonymous
Tue, 06/30/2009 - 13:53 | Link to Comment Anonymous
Tue, 06/30/2009 - 13:53 | Link to Comment shargash
shargash's picture

If find a basketball analogy to be most helpful: Goldman Sachs is the Haarlem Globetrotters, we are the Washington Generals. Any attempt on our part to play real basketball will be put down ruthlessly. Our only real options are to be "straight men" to Wall Street hijinks, or to not play the game.

Tue, 06/30/2009 - 13:54 | Link to Comment Anonymous
Tue, 06/30/2009 - 13:55 | Link to Comment rahbii
rahbii's picture

I'm gonna see if I can figure out how to cheat on my taxes from now on. Or maybe just move to Canada. Fook these mobster TARP singling crooks!

Tue, 06/30/2009 - 13:58 | Link to Comment Anonymous
Tue, 06/30/2009 - 14:03 | Link to Comment Steak
Steak's picture


Tue, 06/30/2009 - 14:09 | Link to Comment quant-this
quant-this's picture

How else do we expect the government to hide it's PPT purchases?

Just in time to screw me on my short trades again, and just when it was becoming profitable again. Tomorrow we try again so look for a nice afternoon rally to completely screw me.

Personally I'm tempted to turn the computers off and just join them by buying some cheap out of the money SPY calls (on sale now for 22-24% IV), cause you know that without transparency and low volume PPT is going in big time.

Tue, 06/30/2009 - 14:10 | Link to Comment gammaman
gammaman's picture

"The [NYSE] and all their tribe... really think it is terrible that the securities business should be made [transparent] rather than a refined and intricate form of fleecing." [Paraphrased from a 1933 letter regarding the Investment Bankers Association]

Tue, 06/30/2009 - 14:18 | Link to Comment max2205
max2205's picture

BHO's Email address if you care to bombard him as I have since they mistakenly emailed me asking me to 'roll up my ...'

Tue, 06/30/2009 - 14:30 | Link to Comment ShankyS
ShankyS's picture

Another move signaling the end I fear. This is like admitting this thing is so big, so bad and the hole is so deep they have no other options. Shut the public out. We just got owned. It appears the pace of the fraudster's actions is picking up, which is not good sign either.

If you missed it Prag Cap did a nice post
IMO the Martin Armstrong piece is unbelieveable.

Tue, 06/30/2009 - 14:37 | Link to Comment bluedobie
bluedobie's picture

I'm done with it. screw em

Tue, 06/30/2009 - 14:38 | Link to Comment gammaman
gammaman's picture

BTW, we're having two separate comment strings evolve between old and new ZH site. TD, any way to consolidate?

Tue, 06/30/2009 - 14:43 | Link to Comment Anonymous
Tue, 06/30/2009 - 14:49 | Link to Comment Socrates
Socrates's picture

Fearing a jury might be shown public data, the criminal returns to the scene of the crime and wipes it clean.


Tue, 06/30/2009 - 14:50 | Link to Comment Comrade de Chaos
Comrade de Chaos's picture

What about em market integrity? F. lunatics, are they willing to lose the little reputation they have? Somehow I am not surprised that they are losing the market share to their competitors.

Tue, 06/30/2009 - 14:56 | Link to Comment Bubby BankenStein
Bubby BankenStein's picture

This is just another bad omen of how fowl reality is.

When the situation is so desperate that PR must move into and manipulate markets so as to con the public into believing media PR that everything is ok, it is like a 180 decibel klaxon signaling danger.

This is a political ploy employing investment banks and other insiders as PR tools. Of course, part of the deal is that the insiders get to keep the spoils of this manipulation. Any thing that is opposite the program will be destroyed to the extent possible - nothing personal at all, except your money.

Your only hope is to be on the correct side of their program.

Tue, 06/30/2009 - 14:56 | Link to Comment JohnKing
JohnKing's picture

Just change the name of the NYSE to "Area 51 Bucket Shop".

They pulled the same stunt with foreign interest reporting on Treasuries. Pretty soon we won't be able to pull stock quotes, just BELIEVE US, all is well.

Tue, 06/30/2009 - 15:04 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:09 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:21 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:21 | Link to Comment Anonymous
Tue, 06/30/2009 - 16:51 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:24 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:27 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:28 | Link to Comment economessed
economessed's picture

I guess you can react to the destruction of free, fair and open markets by calling someone and complaining.

But I'm going to fold-up my equity trading account and stay out. I'll buy more guns and ammunition with the money I'm not longer going to spend on commissions.

Guns and ammunition, people.

Tue, 06/30/2009 - 15:29 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:32 | Link to Comment VFR
VFR's picture

In London two years ago I met two GS staff over dinner and gave my thoughts on the impending crash and possible market manipulation . I was not the most popular person that evening and was accused of spoiling the evening with my dour predictions. My retort then and is now, "at least I only spoilt dinner, how many lives will you spoil?" They were oblivious to it all. Probably still are in their insulated manipulative world. Jealousy I'm sure!

Tue, 06/30/2009 - 15:35 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:36 | Link to Comment Anonymous
Tue, 06/30/2009 - 15:47 | Link to Comment VegasBD
VegasBD's picture

Is it possible GS made them stop doing the report BECAUSE of zerohedge? Be curious to know that answer...

Tue, 06/30/2009 - 16:03 | Link to Comment agrotera
agrotera's picture

Could we make a petition for information on the presidents working group's activities based on the FOIA?

Tue, 06/30/2009 - 18:12 | Link to Comment Anonymous
Wed, 07/01/2009 - 01:29 | Link to Comment Printfaster
Printfaster's picture

These people are arrogant because they control us. They make the money. They own you.

Die in poverty suckers. I am Goldman and I rule the world.

Fri, 07/03/2009 - 00:26 | Link to Comment Anonymous
Wed, 08/19/2009 - 04:43 | Link to Comment Anonymous
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