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Open Letter To The SEC's Worthless Enforcement Division

Tyler Durden's picture




 

From reader QevolveQ Holdings

Sent 10-21-10 to SEC Enforcement Division

To Whom It May Concern,

I have a question. Why does the SEC allow high frequency traders/co-location traders/etc., to front run retail orders every day in almost every security? When I say front run, I mean the practice of utilizing sub-penny orders whereby these so called traders step in front of real bids and offers by 1/100th of a penny to get the trade done, knowing there's a bid or offer right behind them. This has happened to me at least fifty times in the last year. It is particularly a problem on illiquid issues in which the sub-penny order that front runs my orders may be the only business done at that level. And so my order just sits there and never gets filled.

This exact scenario in fact happened again today, as I was a 700 share bid at $6.10 in PROV from 11:39am till the close. At 2:26pm 450 shares were executed at 6.1007. On 450 shares that is equivalent to just 31 cents better than my 6.10 bid. And that sub-penny trader got the order instead of me because they were able to front run me without even showing a bid in the market (i.e. the 6.1007 print just magically appears on the tape with no bid having been shown there in the Level II system). I would gladly have paid that price, but of course I'm retail and cannot use sub-penny increments.

I hope somebody at the SEC actually reads this. I would very much appreciate a response as well. Please tell me, why is this practice (among others) allowed for some market participants and not others? It is a complete ripoff in my opinion. Our equity market has become a total farce because such practices are allowed. I have little to no faith that I am operating on a fair and level playing field. The marketplace has become dominated by machines and those with the highest levels of capital to deploy. The average retail investor like myself is simply left to be exploited by the robots of greed. These practices are not going unnoticed, and I want to voice my opinion that this nonsense happens in the equity market every day. In my opinion, it is deplorable and likely responsible for investors' seeming lack of confidence in this rigged financial system we are forced to operate in.

Regards,
MQ

 

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Thu, 10/21/2010 - 22:53 | 668882 SRV - ES339
SRV - ES339's picture

.

Thu, 10/21/2010 - 23:49 | 668997 CPL
CPL's picture

Let them.

If the economists in the position are that bad at math let them.  We will see them all out of job in two years.  The rest of us can make our own economy from proper trade and barter.  Fuck'em.

Fri, 10/22/2010 - 09:08 | 669380 MarketTruth
MarketTruth's picture

HFT Computer says:

ALL YOUR TRADES ARE BELONG TO US.

Thu, 10/21/2010 - 23:03 | 668887 SloSquez
SloSquez's picture

Dear MQ,

You suck, we don't!  See the "Disgustipated"  -

ala Tool

Signed

SEC...Bitchez!

Fri, 10/22/2010 - 00:19 | 669023 i-dog
i-dog's picture

You're not far off what will happen!

Sadly, this letter requests no remedy and offers no consequences for a failure to respond or act. It will probably not even get a reply.

The last time I wanted a remedy, I circulated copies to about 7 different competing regulatory bodies -- bureaucratic, political and NGO. I got what I wanted (5 police suspended, 2 fired and 1 in prison) because each recipient was afraid that one of the others would act.

Fri, 10/22/2010 - 00:37 | 669056 Vagabond
Vagabond's picture

What'd the cops do?

Fri, 10/22/2010 - 01:23 | 669078 i-dog
i-dog's picture

"What'd the cops do?"

Pissed me off ... by harassing a friend. (literally!)

Fri, 10/22/2010 - 05:18 | 669200 Azannoth
Azannoth's picture

After my motorbike was stolen, I emailed the chief inspector for the city(a capitol city no the less) to do something about it, like rig some motorbikes with GPS devices and track the thiefs, I got no reply for like 2 weeks, than I forwarded the email to a newspaper letting the other guy know, I got a reply in 2 day after that, although I highly doubt he actually did anything about it, Use the damn CC to as may people as u can

Fri, 10/22/2010 - 09:29 | 669433 knukles
knukles's picture

Of course nobody at the SEC's gonna read it.  The body of the letter didn't include the tag words "New Tranny Porn".

Sat, 10/23/2010 - 05:16 | 671581 toddcfairchild
toddcfairchild's picture

Agreed with the tactics here but what a ridiculous claim by douche-o here that he got 5 cops suspended, 1 fired and 1 in jail for "harassing his friend."

Sat, 10/23/2010 - 05:42 | 671587 i-dog
i-dog's picture

"ridiculous claim by douche-o"

A typical twitter-ish comment on ZH by the Twit generation! Wait till your IQ exceeds your shoe size before commenting in future.

FWIW: As part of their harassment of said friend, I also had a gun held to my head. But it was their corruption (including perjury to obtain a search warrant) and mafia-style harassment of my friend, which he was too timid to pursue, that I used to bring them down.

It wasn't even the gun to my head that got me fired up, it was their cocky arrogance! When my friend asked them why they had smashed in the glass front door instead of pressing the doorbell, the senior sergeant pointed to his sledgehammer and said: "That's my doorbell, sonny!" That was when I decided they were definitely going to lose their jobs!

In your defence, I should add that it is normal for a slave to disbelieve something of which you would never be capable.

Fri, 10/22/2010 - 00:35 | 669052 arby63
arby63's picture

What kind of fool bullshit do you spew forth idiot?

Thu, 10/21/2010 - 22:56 | 668889 Cameli
Cameli's picture

Likely responsible? Totally you mean. Good luck in getting a response. Mary is too busy spending her $9mil. Bonus to bother about trivial little sH1ts like us.

Thu, 10/21/2010 - 22:57 | 668890 kato
kato's picture

Thank you. It is an unbelieveable screw job [not to mention the other corrupt Shenanigans]. Does the CME allow CME Members to front run? NO! The electronic Futures markets are the only reasonably fair markets there now are. The SEC is just Dumb and Stupid. Thank you ZH.

Fri, 10/22/2010 - 00:17 | 669030 Dixie Normous
Dixie Normous's picture

Are you kidding?  The electronic futures markets are totally fucked! Have you seen the likes of cotton lately (granted that's ICE but they all play the game)? Limit down, limit up, limit down oversees, limit up here.  Post 9PM est rallies where someone (or something) lifts every offer in one lots regardless of the huge spreads. It's a fucking monkey circus.

Fri, 10/22/2010 - 09:47 | 669485 Panafrican Funk...
Panafrican Funktron Robot's picture

Agreed, I've actually made quite a bit of money over the last several months by simply buying an ETF on anything that drops more than 3 points, and then selling it the next day whenever it goes up 1.5 points.  It works way, way too often for this not to be manipulation (I'm seriously talking about a 94% success rate, it's hilarious).

Thu, 10/21/2010 - 23:03 | 668898 zen0
zen0's picture

 A letter like that needs to have a name and address, and note that it has been Copied to your political representative, plus maybe a lawyer, though usually the above will do.

 

Politicos count one letter as 800 votes.  If you make it a matter of record, rather than an opinion piece (open letter), they have to deal with it somehow. Then you go from there.

 

You have to make a paper trail or they do not have to respond at all.

Thu, 10/21/2010 - 23:03 | 668899 RobotTrader
RobotTrader's picture

In my opinion, the "Algos On Acid" moves in the after market on NFLX, AMZN, etc. is a far more serious issue to deal with than these measly penny frontfunning antics.

Look what happened to the bloke who got his NFLX short filled with the stock was down 10 last night, only to see it rocket 25 points in the after hours and other 10 points the next day.

Thu, 10/21/2010 - 23:06 | 668904 SloSquez
SloSquez's picture

The velocity is becoming obsurd.  Enjoy your posts Robo!!!

Thu, 10/21/2010 - 23:22 | 668940 Cistercian
Cistercian's picture

 They have made crushing shorts into a bloodsport.

Thu, 10/21/2010 - 23:26 | 668950 SloSquez
SloSquez's picture

And then some.

 

Fri, 10/22/2010 - 01:10 | 669090 tip e. canoe
tip e. canoe's picture

with the full faith & credit of ours truly of course.

'algos on acid' : good robo, very good.

you got an HST inside you after all.

Fri, 10/22/2010 - 09:36 | 669452 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

It seems like more slice-and-rip than crush.  Just sayin'.

Thu, 10/21/2010 - 23:19 | 668927 firstdivision
firstdivision's picture

There was also an interesting spike in SPY.  This really is getting out of hand at the moment.

Thu, 10/21/2010 - 23:22 | 668938 max2205
max2205's picture

Lots of strange prints around 7 ish. I thought the dollar crashed

Thu, 10/21/2010 - 23:20 | 668933 max2205
max2205's picture

Tonight Amzn trades ah 165 then bamm 153. BIDU 98 then bamm 105.

Bamm bamm Damn!

Fri, 10/22/2010 - 00:40 | 669061 doolittlegeorge
doolittlegeorge's picture

both these points are very scary indeed but i think also point to a "regime that we are being forced to follow."  i'm still unclear if this was the Fed's intentions when they began QE but "force feeding the people into equities" has clearly been the result since there has been no other rational place for cash to be put to work.  needless to say "the market guys know this." the SEC long ago it appears gave up on the idea of calling balls and strikes.  at a certain level it is a governmental disease demanded due to "elections."  how much longer can the American people stand such things?

Thu, 10/21/2010 - 23:03 | 668900 Turd Ferguson
Turd Ferguson's picture

MQ: I hope you got some kind of medicinal happiness out of complaining because that's all your gonna get. Well, that and the proverbial middle finger. Sorry.

Thu, 10/21/2010 - 23:05 | 668902 Problem Is
Problem Is's picture

"Why does the SEC allow high frequency traders/co-location traders/etc., to front run retail orders every day in almost every security?"

Answer: Because Times Are Tough
Lloyd must extract his bonus from the schlep retail investors and every other orifice available...

Next Question Please...

Thu, 10/21/2010 - 23:15 | 668907 aint no fortuna...
aint no fortunate son's picture

It happens because the Too Big To Jails WANT it to happen. They own the fucken SEC and you don't and that's the end of it. When you own the Administration, the CONgress and the fucking regulators you too can trade subpennies and get a husky ripping off honest people. Do yourself a favor - I wrote them a couple of times years ago to complain about various egregious shit and they never even acknowledged the letters, which made me start thinking about doing the kind of shit that gets the black helicopters filing flight plans over my house. It just ain't worth the time and negative energy. Let the fucken helicopters go looking for Tyler... he drives them batshit. Drive on, and when the time comes maybe, just maybe the shoe will be on the other foot.

Fri, 10/22/2010 - 00:44 | 669069 doolittlegeorge
doolittlegeorge's picture

they have reason to fear this, too. equity guys are like "the test pilots of finance."  CRAZY.  next thing you know "they're the one's going to the moon."  Governments do things like this...as Tom Keene says "expect the unexpected." We've sailed into uncharted waters...

Thu, 10/21/2010 - 23:09 | 668909 system failure
system failure's picture

SEC no longer functions as a regulatory agency. Hence worth, you are wasting your time by complaining to them. However, I applaud your efforts as the obvious response to your inquiry form the SEC will be that they want all robots trading the markets only, since they are essentially fairy tale land anyway. Nobody trades the markets and retailers are pulling their money out of the rigged game faster than the SEC can download the lastest porn available on the net.  

Fri, 10/22/2010 - 00:23 | 669028 cowdiddly
cowdiddly's picture

exactly. The letter is a noble gesture but it will just get the canned response email I used to get so many times back when I used to write them about naked shorting after I bought 240k of shares in a OTC company that the certs turned out were counterfeit. Never nothing done and money never refunded. 5 years later I still have the frozen, then delisted shares in my acct. but never legally existed. Total waste of time. Sad. This was when I learned that this whole electronic stock thing is nothing more that a giant fraud. Ever since, when an if I buy a stock I just pretend I just bought a big steaming pile and try to unload for small profits quickly. All you can do in a market this corrupt..

Fri, 10/22/2010 - 08:38 | 669332 Kat
Kat's picture

The SEC functions EXACTLY like a regulatory agency - in other words, not as intended.

Read up on "regulatory capture".

The last concern of the SEC is retail.  Retail is irrelevant.

Thu, 10/21/2010 - 23:12 | 668918 Bankster T Cubed
Bankster T Cubed's picture

LOL!  The SEC doesn't give a fuck about anything other than protecting their masters, the big broker/dealers like GFS, JPFM, MFS, etc.

Here is their response to you: fuck off go away

Thu, 10/21/2010 - 23:17 | 668925 max2205
max2205's picture

Please stop bothering us at the SEC we are investigating new porn sites. Really

Thu, 10/21/2010 - 23:24 | 668944 Everyman
Everyman's picture

DANG!  You beat me to it.  I was going to post that there is som Brazilian Fart Porn or Jaoanese Vomit porn that the SEC has not "tossed off " to yet.  The "investigation" is incomplete.

I mean REALLY?  The SEC is not going to take out this obvious fraud corrupt crap?  Really?  The level to wit these twits bury their heads in the sand or just "go through the motions" of showing up for a paycheck everyday is astounding.

You would think somebody ther has some iota of Pride or Ethics?  I mean, REALLY?  Something this obvious and they can't or won't stop it? 

Audit the Fed do away with it and shut down the SEC.  They don't enforce, investigate, and apparently the last two judges rejected every investor complaint for the last 20 years.

When is it time to start shooting idiots, sycophants, and go alongs in the f-ing head????  Voting sure doesn't work and apparently neither does the law.

Fri, 10/22/2010 - 00:44 | 669071 doolittlegeorge
doolittlegeorge's picture

what is "vomit porn"?

Fri, 10/22/2010 - 01:07 | 669085 Coldfire
Coldfire's picture

.

Fri, 10/22/2010 - 19:48 | 670823 Everyman
Everyman's picture

It is a Japanese thing.  Don't you watch South Park?

Fri, 10/22/2010 - 00:46 | 669073 Azwethinkweiz
Azwethinkweiz's picture

+ 1000000000

Thu, 10/21/2010 - 23:27 | 668951 Cistercian
Cistercian's picture

 Perhaps the SEC never helps because people fail to include hot new porn links with their complaints.

  And if anyone tries this and succeeds, a whole new market of porn trolling the web to appease the unholy appetites of the SEC could be created.........

 or not.

Thu, 10/21/2010 - 23:29 | 668956 Everyman
Everyman's picture

+ 10.  Could you imagine working at the SEC.  OH, silly me, I mean "showing up to put your time in" not "working".  Working there and having all this embarassing crap haunt you at every turn.

Thu, 10/21/2010 - 23:50 | 668989 Problem Is
Problem Is's picture

"Please stop bothering us at the SEC we are investigating new porn sites."

BWAAAHHHAH-AH-HAH-ha-ah-ha-ha-ah-ha...
Note: Mary likes anal porn...

Thu, 10/21/2010 - 23:19 | 668932 zen0
zen0's picture

Letters to bureaucrats and Department heads copied to political reps. That is how the system works.

 

Most of you write copious amounts of opinion, but it is all air unless you back it up with hard copy.

In a stamped envelope with a return address.

Thu, 10/21/2010 - 23:27 | 668949 Everyman
Everyman's picture

HFT's the SEC KNOWS about and they are quite aware of it and even the institutional traders are sick of this shit.  They are looking the other way out of impotence, incoherence, incopentence, INCONTENCE, or they are being paid.

Any way you slice it is a plie os steaming shit!  OH, I forgot of the scat porn that the SEC Investigators like?

Fri, 10/22/2010 - 00:24 | 669041 squid_pro_quo
squid_pro_quo's picture

I think he meant to say "taped to an unstamped brick and thrown through a window"

Fri, 10/22/2010 - 08:45 | 669345 fajensen
fajensen's picture

I hear that the post office will pursue the recipient of an under-paid letter endlessly with angry letters - so write your complaint on a roofing tile and mail that to them using a small-value stamp (just dont put a return address on the thing) or maybe include a huge load of used porn mags To Insure Prompt Service?

Fri, 10/22/2010 - 00:25 | 669045 cowdiddly
cowdiddly's picture

Been there done that. Did'nt work. AG, Governors, Senators you name it.

Thu, 10/21/2010 - 23:22 | 668939 scratch_and_sniff
scratch_and_sniff's picture

Nowhere near strongly worded enough, but it is what it is.

Thu, 10/21/2010 - 23:25 | 668948 Nihilarian
Nihilarian's picture

Perhaps Zerohedge would get more SEC readership if they posted some opinion pieces in Playboy...

Thu, 10/21/2010 - 23:31 | 668965 Everyman
Everyman's picture

Dude, they don't mess with "Playboy" that is far too tame.  They are into the really pervy stuff.  Hell they apparently "start" the new investigators on tranny porn.  They go down in the filth the longer they are there.

Hey SEC readers, your are welcome for the filthy fantasies and happy endings curtosey or the taxpayer.

Thu, 10/21/2010 - 23:30 | 668959 williambanzai7
williambanzai7's picture

We have beat these subject to death. Time to grab the torches and pitch forks and head for SEC Headquarters.

Thu, 10/21/2010 - 23:32 | 668966 Nihilarian
Nihilarian's picture

Robocop has a PhD in real life btw.

Fri, 10/22/2010 - 00:24 | 669044 williambanzai7
williambanzai7's picture

Real life...there's an old fashioned concept ;-)

Thu, 10/21/2010 - 23:36 | 668973 SloSquez
SloSquez's picture

Banzai firing off, I was wondering when you would wade in.

Thu, 10/21/2010 - 23:39 | 668977 SloSquez
SloSquez's picture

This is what I consider art.

http://www.youtube.com/watch?v=AKdFCsycYm8

Thu, 10/21/2010 - 23:58 | 669005 GoinFawr
GoinFawr's picture

I hope you get to experience one, first hand. Then second hand, then third hand, and finally, fourth. Though by the time you get to second hand, I doubt you'll be at all aware of the 'beauty' anymore.

The whole claim that it should 'lower' collateral damage, yah right. Everyone is a soft target in the electronic eyes of that sickening device.

Noted SloSquez.

Fri, 10/22/2010 - 00:05 | 669016 SloSquez
SloSquez's picture

You are obviously on the wrong side of the trade.  The technology is impressive.  You have to admit.  I don't think I would live to see the second.

Sat, 10/23/2010 - 23:10 | 669976 GoinFawr
GoinFawr's picture

Oh it's impressive all right, and there is definitely a valid argument for calling it 'art'. It still makes me nauseous... IE Tech like that developed by the company you adore creates more enemies than it destroys so that the company you adore can perpetuate developing more tech like that; there is no 'right' side to that trade.  Serpent eating its own tail, IMHO.

Regards

Fri, 10/22/2010 - 08:56 | 669364 fajensen
fajensen's picture

It is obvious from the speaker's voice that those weapons are designed by robots in secret underground automated factories so, when they have enough, they can cleanse the earth of the puny fleshlings and their stupid machines so The New Order can take form.

Thu, 10/21/2010 - 23:56 | 669004 Problem Is
Problem Is's picture

"Time to grab the torches and pitch forks and head for SEC Headquarters."

My Sign Is Ready:

"SEC: Free Porn NOW!"

Fri, 10/22/2010 - 00:23 | 669039 williambanzai7
williambanzai7's picture

Here is mine

Fri, 10/22/2010 - 01:31 | 669110 Miles Kendig
Fri, 10/22/2010 - 00:01 | 669010 palmereldritch
Thu, 10/21/2010 - 23:38 | 668970 bob_dabolina
bob_dabolina's picture

Has anyone considered the time the crash occured on May 6th? Someone knew there would be no circuit breakers after 2:30

Almost feels like it wasn't a rogue event. Maybe a group of people wanted to prove that they were still in control and wanted a euro zone bailout.

Thu, 10/21/2010 - 23:46 | 668992 AndItsGone
AndItsGone's picture

Close. What actually happened was the Senate was in floor debate FinReg and over 50 Senators supported the Sanders Amendment for a full, ongoing audit of the Federal Reserve. At 5 PM on May 6th, Bernie Sanders voluntarily pulled his amendment and replaced it with a watered-down version that only provides for a one-time "forensic audit" of the 2008 Crash.

I truly believe that Bernie Sanders was shown a portal to hell on that day.

Thu, 10/21/2010 - 23:43 | 668984 Oracle of Kypseli
Oracle of Kypseli's picture

You don't get it. Do you?

All of you get out of the market. It's rigged. What do you expect? Starve them. they can not function without the retail investor.

My 401k, a sizable sum, is invested in................cash. That's right. Cash, not money market. Just cash. It is more important to take the tax deduction and sleep well, despite the dollar devaluation. I have no appetite to contribute to the calamari cartel.     

Thu, 10/21/2010 - 23:45 | 668987 SloSquez
SloSquez's picture

Yes, that dollar devaluation.  I find that hard to stomach unhedged.

 

Fri, 10/22/2010 - 00:21 | 669035 merehuman
merehuman's picture

thank you oracle. been sayen a while that they are dealing with crooks, and then you become one. hey you all!! give it up , please , for your country, for me for you amd mom and our forgoten boys overseas. You readers here have the power to move this ball. You dont expect the sheep to save you do you?

Man up, get out of the market. help us Please

Thu, 10/21/2010 - 23:52 | 668999 Clint Liquor
Clint Liquor's picture

What part of 'blood sucking squid wrapped around the face of anything that smells like money' don't you understand. They are just squeezing the last of the fresh blood out of the corpse. Meanwhile, they have a G5 on the tarmac filled with coke and whores ready to take them to their south pacific island paradise. After half the people have killed the other half and started rebuilding, they will be back to provide the liquidity.

Fri, 10/22/2010 - 00:02 | 669012 buzzsaw99
buzzsaw99's picture

because mary is a self serving cnut.

Fri, 10/22/2010 - 01:37 | 669117 Miles Kendig
Miles Kendig's picture

A true wannabe drag king chickenhawk

http://www.youtube.com/watch?v=M2nuOneeQ5M

Fri, 10/22/2010 - 00:19 | 669032 working class dog
working class dog's picture

Another SEC enforcement farce!!

What is the status of Attorney General Jerry Brown (gov. candidate?) He was  suing countrywide, how about bending over this tanned terd, and beat him with the tax stick.

Angelo R. Mozilo insider trading case brought 2 years ago. He made 480 million in illgotten gains pushing the garbage loans. This whale shit should be breaking rocks not paying a pittance in fines the money he stole, ripping off the public and shareholders. Of course he gave out cheap friendly loans of 58,000.00 for a washington dc home and 17,000.00 on a CT. home to the former head of the ethics committee and chair of the senate finance committee, none other than "butt boy for the banksters, Chris Dodd!." Too bad Barney Franks boyfriend didn't burn down one of Dodd's houses when the boyfriends dope plants caught on fire in the basement. What a bunch!!

JUNE 2008

WASHINGTON (CNN) — Senate Banking committee Chairman Christopher Dodd told? CNNs Dana Bash and Wolf Blitzer Wednesday that he was responsible for adding the bonus loophole into the stimulus package that permitted AIG and other companies that received bailout funds to pay bonuses.

Dodd should be breaking rocks too, along with his wife who sits on boards for Bio-tech company boards, and collects 75,000.00 for showing up with brownies, which is about all she would know about a Biotech company. What a level of total stealing. We should send congress and the senate on a barge to hell over to the students in france to be used as shields.

Dodd, You lousy sack of....

Fri, 10/22/2010 - 00:49 | 669077 doolittlegeorge
doolittlegeorge's picture

what kind of brownies?  yummy and tasty ones?  could make all the difference you know...one of those mmmmmmm, aw right, let's spend the 10 billion on, what was the name of that company again? brownies.

Fri, 10/22/2010 - 00:20 | 669034 Azwethinkweiz
Azwethinkweiz's picture

I don't even think Rod Serling could have written a more fucked up Twilight Zone episode than the reality we're all living in today.

We're so fucked!

Fri, 10/22/2010 - 00:29 | 669049 mark mchugh
mark mchugh's picture

"A strange game.  The only winning move is not to play."

MQ, you need to walk away.  The SEC has no intention of fixing the market.  Close your trading account, take whatever is left and buy physical silver.

You can thank me later.

Fri, 10/22/2010 - 00:36 | 669053 Milton Waddams
Milton Waddams's picture

SEC is in a box on this issue.

The HFT game is monopolized by "untouchables". Only when plying such a trade is made feasible for smaller players will the enforcement actions commence. Against the small time players, of course.

The SEC's job is to bust the petty thieves. You know, the less sophisticated criminals that threaten to wreck the facade for the apex predators. Make no mistake, they will occasionally take down a big player in times when it becomes an unavoidable necessity toward protecting, and restoring confidence in, the racket, er markets.

Fri, 10/22/2010 - 00:42 | 669063 mynhair
mynhair's picture

Have a 13 year old, on me.

 

http://www.youtube.com/watch?v=9F9q_k5TWqo

Fri, 10/22/2010 - 00:42 | 669064 mynhair
mynhair's picture

Have a 13 year old, on me.


http://www.youtube.com/watch?v=9F9q_k5TWqo

Fri, 10/22/2010 - 00:45 | 669072 mark mchugh
mark mchugh's picture

In other SEC news....

The SEC settled the Mozilo case for about 7.5 cents on the dollar, and that's just the insider trading part.  The cost of the total fraud created by Countrywide will exceed $100B (CFC shareholders, BAC, Fannie & Freddie etc.).  Mozilo will pay $22.5 million.  Big fuckin' deal.

I applied for an insider trading bounty against Mozilo in March of 2007.  The SEC charged him in June 2009.  I contacted the SEC today to find out if I (or anyone else) will be collecting a bounty for the Mozilo settlement......How do you think it went?

http://acrossthestreetnet.wordpress.com/2010/10/21/trick-or-treating-at-the-sec/

Fri, 10/22/2010 - 00:48 | 669075 uptick1028
uptick1028's picture

Time to go to nickel spreads and allow no sub pennying.

Fri, 10/22/2010 - 01:25 | 669103 tip e. canoe
Fri, 10/22/2010 - 01:03 | 669082 The Navigator
The Navigator's picture

Its a rigged casino where only THEY win - rigged 16 ways from Sunday.

Brings to mind the quote 'a fool and his money are easily parted'

Fri, 10/22/2010 - 01:44 | 669120 Kina
Kina's picture
Open Letter To The SEC's Worthless Enforcement Division

 

This is quite generous and a description they would prefer as it leads away from the truth.

They might be worthless but not because of incompetence. They know exactly what they are 'not' doing.

More truthful and revealing would be to label them dishonest or corrupt.

The same goes for the CFTC who we know now have been corrupt for 20 years.

 

 

Fri, 10/22/2010 - 02:53 | 669160 tony bonn
tony bonn's picture

Dear Chump I MEAN MQ,

We have received your recent complaint concerning front running and its possible impairment of order execution at prices beneficial to cannon fodder I MEAN RETAIL INVESTORS. Please understand that the SEC takes these allegations seriously and will bring all of its pornographic I MEAN ANALYTICAL investigative capabilities to determine the demerits I MEAN merits of your request.

The SEC is mandated by Federal statute to ensure the ethical operation of markets in order to protect fools I MEAN INVESTORS from illegal predators and predatory practices. We assure you that we take each of these complaints hysterically I MEAN seriously and will do our utmost to maintain your tits I MEAN privacy in this matter.

You may read about the SEC complaint resolution process at www.smut.com I MEAN www.sec.gov/pussy.

It is our highest achievement to bring equal opportunity for all  marketplace actors but especially billionaire banksters I MEAN small investors with small dicks I MEAN portfolios.

FUCK YOU I MEAN Sincerely,

Mary Shitpiro

Fri, 10/22/2010 - 03:05 | 669167 title examiner
title examiner's picture

My take is that the objective is to empty the market, prices collapse--perhaps in a flash, though probably not.  Everything gets snapped up cheap. 

Public companies end up consolidated in their hands, then taken private.  Waive bye-bye.

 

Fri, 10/22/2010 - 03:57 | 669183 theprofromdover
theprofromdover's picture

Well, you adopt guerilla tactics then.

Remember, this is a game so there are no rules.

Are you not as smart as the automatons?

Fri, 10/22/2010 - 05:42 | 669211 ZeroPower
ZeroPower's picture

What the fuck is the value of a fraction of a penny to the daytrader anyway?

Nothing.

Fri, 10/22/2010 - 05:49 | 669216 kwvrad
kwvrad's picture

Dont you folks know? Its growing pains at their backup facilities

up in Mahwah NJ, "they" gotta makesure they have 100% control

with nobody at the controls,no one to blame. Ill have to get some pics to post here of it

as long as I dont get "detained" as a threat lol as long as its ok with Tyler.

Fri, 10/22/2010 - 05:54 | 669219 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

Nothin' to see here folks...move on

Fri, 10/22/2010 - 06:08 | 669228 Alcoholic Nativ...
Alcoholic Native American's picture

I can't wait until the computer bots figure out away to just skip trading all together and just find a way to directly inject money into bank accounts.  Leave the gambling to Humans you selfish robots!  We can't compete with your cold calculating algorithms!

Fri, 10/22/2010 - 06:51 | 669250 OnTheWaterfront
OnTheWaterfront's picture

Dear MQ,

We don't care, We don't have to. We're the SEC.


Fri, 10/22/2010 - 07:02 | 669256 fightthepower
fightthepower's picture

Letters, begging and protests simply don't work.  In fact, they are worse than nothing.  It just enforces tothe power elite that they are the master and you are their slave.  Until common individuals, middle class, and even upper class take to the streets nothing will change.  Until the power elite fear for their existence, nothing will change. 

Fri, 10/22/2010 - 07:14 | 669261 Alcoholic Nativ...
Alcoholic Native American's picture

Fear for their existance? lol, these are the same people that got you clowns to go along with their "war on terror".  Face it guys, you are fucked.  Nobody is taking to the streets, people are starting to take it to their keyboards but there are already counters in place to subjugate that too.  See all the corporate trolls on this site.

 

Fascism has taken root.  They got their foot in the door.  Allahu Akbar!

Fri, 10/22/2010 - 07:33 | 669265 fightthepower
fightthepower's picture

Speak for yourself, weenie...

Fri, 10/22/2010 - 07:46 | 669270 Alcoholic Nativ...
Alcoholic Native American's picture

Taking it to the streets only gets you a criminal record and put on a black list.  By all means go tough guy!

Fri, 10/22/2010 - 11:07 | 669688 anony
anony's picture

He speaks for the vast majority. 

Until we each put down our keyboards, load up the van with immense amounts of explosives and take out the elite including most of Wall Street, Fleet Street, and the US Senate, nothing will change.

 

Fri, 10/22/2010 - 11:04 | 669682 anony
anony's picture

Anarchy is really the only answer and I don't see too many americans willing to take the chance on that.

Fri, 10/22/2010 - 07:31 | 669264 Judge Smales
Judge Smales's picture

Dear MQ,

Who are you to question us?

Didn't your momma teach you to respect your betters?

Don't you eyeball me, boy.

Warmest regards,

The SEC

Fri, 10/22/2010 - 08:03 | 669284 Waterfallsparkles
Waterfallsparkles's picture

I believe that the SEC is there to protect the Banks from Retail Traders.  When they open a complaint it keeps Law Suits at bay until the SEC rules.  When they rule all of the Documents and Discovery are under Seal.  The Companies never admit any wrongdoing and any fine is kept by the SEC and never given to the Individuals harmed by the wrongdoing.

As far as sub penny trades they are blatant frontrunning and manipulation.  No one else except the Computers can trade in sub penny's.  Anyone else would have to get in line behind existing trades and not have the advantage to see a trade comming and get in the front of the line by .0001. Why are the rules on sub penny trades and frontrunning different for the Computers than any other Trader?  This in itself gives the Computers an unfair advantage over all other traders.

I also believe that the sub penny trades permit manipulation as they can be used to keep either the bid or the ask from being taken out.  They just keep comming in ahead of them.  The other problem is that they now control the trading and can withdraw either bids or asks to control the direction of the trade.

I agree with the Poster and their letter as the very first step should be to stop the sub penny trades as they are in essesence used for frontrunning which is supposed to be illegal.  Why do they ignore such an illegal action by the Computers?

Fri, 10/22/2010 - 13:53 | 670104 Thisson
Thisson's picture

This is incorrect.  The fines do go to the investors to mitigate their losses.

Fri, 10/22/2010 - 10:00 | 669288 spanish inquisition
spanish inquisition's picture

Alot of the stuff that happens the SEC can't investigate because there is no crime. I am guessing that many precorporate news trading spikes are legal in the form of congress insider trading.

I think anyone who is running against an incumbent should ask "Have you, while in office, profited from your position with legal insider trading?". And follow up with "Would you consider this one of the worlds great institutionalized bribery techniques and recommend it to the countries that the US accuses of corruption, to help them be less "corrupt"?"

Edit: The obvious lack of prosecution is that there is nothing to charge because no crimes have been committed. Between secret POMO arrangements or National Security liquidity directives or congressional involvement, nothing illegal is being done. haha

Fri, 10/22/2010 - 08:49 | 669355 Kat
Kat's picture

I understand you're not happy that you didn't get filled, but before you complain, you need to have an idea what "front running" is.

What you describe is not front running.  Front running is when the trader knows there's a big order coming, it's not yet reflected and he trades ahead of it based on that information.  This is a problem to watch out for if your firm has both prop and customer trading because the prop traders can front run the customer orders.

When the bid is reflected and is sitting on the book for all to see, it can no longer be "front run".  What you describe is called "stepping in front of the order".  In other words, he bettered your bid and that kind of competition is what the market is all about.

Your real complaint is order increments. Some exchanges accept sub-penny orders and some don't.  To level that playing field, you should be asking to allow sub-penny orders.  But, you're fighting insiders who bear the heavy and expensive burden of regulation in exchange for exemptions.  Trust me, you'd rather have your order sitting on the book unexecuted than suffer the frustration and cost of regulation.  As long as there is regulation, the customer will always be at a disadvantage.

Fri, 10/22/2010 - 09:14 | 669394 apberusdisvet
apberusdisvet's picture

Everyone:  just take a deep breath, relax.  Close your positions, buy PMs, grab a beer and find a horny lady, and watch the world of the banksters implode.  Because it's coming, it's definitely coming.

Fri, 10/22/2010 - 09:35 | 669448 unclebond555
unclebond555's picture

There are so many ways to get around the SEC laws plus the SEC is understaffed so they pick their battles

Fri, 10/22/2010 - 09:45 | 669480 chistletoe
Fri, 10/22/2010 - 09:48 | 669490 colonial
colonial's picture

Dear MQ:

What's wrong with you?  You must be some kind of an idiot.  Who trades on the public markets any longer?  You need to trade in a dark pool and you'll be fine. 

Fri, 10/22/2010 - 10:30 | 669584 Downtoolong
Downtoolong's picture

Liquidity for the chosen few, always there when you don't need it, and never when you do. 

 

Here’s another interesting case for you. Yesterday the spread on the UAL DEC 2010 call option with a 25 strike was wider than Pam Anderson’s pooty for most of the morning. For almost three hours it was $.40 or more, reaching up to $.90 (almost 20% of the premium midpoint) at times. Normally the spread is $.10-.15. The bid side of the market never had more than about $.15 of time premium on it, even though it’s been averaging about $.80 the last week. Someone tell me how this happens in a competitive fair market on a major airline stock, and why our supposed HFT saviors weren’t able to do something about it.    

 

 

Market Managers to Investors: Give us your money so that our HFT and primary dealer clients (who we like much better than you) can churn your investments at the speed of light for a constant, never ending, guaranteed profit at your expense.  What a deal.

 

Investors to Market Managers: I want a divorce.  

Fri, 10/22/2010 - 10:57 | 669659 Skeebo
Skeebo's picture

Letter needs to be sent to every representative, every senator, every news channel and have an attached cc list to even start being effective.

Won't matter though, shit's starting to come unglued.  These algos should be designed to run behind the scenes and not be noticed; increasing occurances of Flash Crash/Smashes, algos moving into illiquided stocks, etc these are signs of system instability.

If the causes of system instability are not discovered and corrected ASAP the universal result is total system collapse.

Is there time to correct the problems before the markets collapse under the increasing pressure exerted by HFT induced systemic instability?  Doubt it.

Fri, 10/22/2010 - 12:04 | 669820 the rookie cynic
the rookie cynic's picture

I have 2 words for you MQ: regulatory capture

http://en.wikipedia.org/wiki/Regulatory_capture

Fri, 10/22/2010 - 13:25 | 670032 UnRealized Reality
UnRealized Reality's picture

You know, this is nothing new. This shit was going on 20 years before ZH. You would place an order with your discount broker and they would send it down to their market maker. The Market Maker would buy at the Bid and sell to you at the Ask and pocket the spread.Which they still do today. I think ZH is capitalizing on the soooo many new traders here it's unbelievable. And I mean people trading the past 10 years. Not to take away from the great service ZH provides but this is no revelation.

Fri, 10/22/2010 - 13:32 | 670035 zloty owadow
zloty owadow's picture

The following response has been received, on 9-November-2010:

 

Dear Mr. MQ,

 

Sorry, perhaps you didn't hear? We have reduced the rulebook from the seven previous volumes down to one sentence, so that everyone can understand. The new rule is just one sentence: All traders are equal, but some traders are more equal than others.

We think that this simple change will save the world. Feel free to contact us again if you have any questions.

 

Very truly yours,

 

{signature}
SEC Enforcement

Fri, 10/22/2010 - 18:55 | 670714 Buck Johnson
Buck Johnson's picture

This type of front running is essentially how the big boys on wallstreet make money, pure and simple.  Yea they make money how regular investors make money holding stock and such, but they always need income streams to expand their profits.

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