SEC's Schapiro Responds To Sen. Kaufman, Promises To Curb HFT Market Manipulation
The funny part:
"I can assure you the Commission takes very seriously credible allegations of market manipulation and, through its examinations and investigations, is actively enforcing the securities laws on an ongoing basis."
It's funny cause it's not true. We may, however, change our mind when the SEC issues a formal statement that it is pursuing enforcement and criminal action against the potential FDIC-based leaks on the BNY suspicious stock action last week.
The sad part:
"We will continue to use all tools at our disposal to aggressively pursue illegal market manipulation by high frequency traders and others."
Sad because it is true.
Here comes the public comment: something tells us Goldman's response is ready to be sent in via messenger squid.
"Next month we hope to seek public comment, through a concept release or similar document, on a range of issues relating to dark liquidity in all of its forms, as well as the impact of high frequency trading in our markets. Among other things, we are likely to seek input on the various strategies used by high frequency traders and any special trading advantages they may enjoy, including through co-location arrangements."
And to end on a funny note as well:
I am committed to pursuing the goal of improved intermarket surveillance as a means to strengthen our markets, deter and ferret out wrongdoing, and augment public confidence.
While nobody will actually believe this blast of fetid hot air until Schapiro actually catches someone operating south of Canal Street with their pants down and hands in the collocation cookie jar, Zero Hedge continues to firmly stand behind Senator Kaufman's campaign to bring some normalcy to what can only be classified as a completely broken and thoroughly manipulated market.
In the meantime, since Mary Schapiro is in dire need of constant external feedback, the (202) 551-2100 number should be put to good use.