Mary Schapiro

Full Kaufman Letter To Mary Schapiro, Or Is The HFT Party About To End?

Issues under attack include everything that currently lays the groundwork for a multiple-tiered market, including:

  • Flash Orders
  • High-Frequency Trading (with a juicy tangent regarding Renaissance Technologies)
  • Co-location of Servers at the Exchanges and Other Venues
  • Direct Market or Sponsored Access
  • Dark Pools
  • Liquidity Rebates
  • Retail Order Flow

Clarification From Charles Schumer On Flash Ban

"We of course expect the SEC to follow its procedures for the implementation of this new rule, but there is every expectation the Commission will vote for it. The bottom line is, this practice will be eliminated."

-- Charles Schumer

Geithner Loses It After Bair Refuses To Yield Power To Fed

It seems the Secretary of the Treasury forgot to take his Xanax on Friday. The WSJ reports that "Timothy Geithner blasted top U.S. financial regulators in an expletive-laced critique last Friday as frustration grows over the Obama administration's faltering plan to overhaul U.S. financial regulation." Presumably the source of Geithner's ire was Sheila Bair's (and probably Mary Schapiro's) unwillingness to yield power over to Bernanke.

SIGMA X Rarely If Ever Discloses VWAP "Child" Orders To The Market

"Enhanced VWAP algorithm places child orders in SIGMA X without displaying them to the market. If the child order executes within SIGMA X then it is never displayed to the market ahead of the trade. If the order does not execute within SIGMA X, the algorithm routes it to the public market where it is displayed." - Goldman Sachs

Letter To Senator Charles Schumer - Ban Goldman's SIGMA X Dark Pool

Dear Senator Schumer,

You recently approached SEC head Mary Schapiro with some very valid concerns about Flash trading, and the potential for investor abuse by advance looks to select market participants ahead of the general order pool. We would like to provide some thoughts.

Critical Response Against High Frequency Trading Starts Generating Momentum

Zero Hedge recently had some choice words against a subset of HFT, namely Flash Trading, and as even Irene Aldridge confirmed earlier, there is something very wrong with that subset of program trading. It seems our admonitions have fallen on the right ears. In a startling development of anti-establishmentarian activism, Senator Charles Schumer has asked the SEC to ban Flash Trading in its entirety, as it "gives high-speed traders an unfair advantage over other investors."

What's Up Or Rather Down With The EUR And General Market Observations

Another perfectly normal day in the market, marked by the totally logical run up in stocks, bonds, commodities... and the USD. Why is the USD stronger? Some of the commentary suggests this is due to risk aversion trades but US equities are higher, oil is higher and many point to this weeks economic data as suggestive of economic stability. So in the search of more satisfying explanations:

SEC Charging Former NY Deputy Controller With Securities Law Violations

The NY AG and the SEC have charged that former deputy NY State controller David Loglisi was receiving kickbacks to steer pension funds to certain hedge funds and private equity firms. Also charged is Henry Morris, top political advisor and chief fundraiser for former NY State Comptroller and CIO of the New York State Common Retirement Fund David Havesi.

Early Jan 30 Headlines

  • GDP: Q4 annualized report out at 8:30 am: Consensus at -5.5%, Actual at -3.8%: someone forget to carry the 1?

Breaking News: SEC's Cox Has Pulled Out; Mary "Kappa Beta Phi" Schapiro Stepping In

Chris Cox has said enough and resigned today at noon. After single-handedly destroying the primary U.S. regulator Cox took the back door. His replacement is Kappa Beta Phi sister Mary Schapiro who ran FINRA - the second most ineffectual regulator in the U.S.

Well, Mary, after Cox's stellar performance, it should not be tough to improve on expectations that are really low, kinda like Obama and all.