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FINRA Chief of Enforcement Compares HFT To Buying First Class Plane Tickets
No surprise here as the Chief of Enforcement over at FINRA, one J. Bradley Bennett offers a glowing example of the clueless nature that runs to the top of our supposed financial market regulating entities. The complex nature of the ecosystem that has ensnared our exchanges thanks to the HFT lobby is heavily misunderstood at the top echelon of FINRA's enforcement division. This horrible connection of HFT to First Class passengers exemplifies that:
[J. Bradley Bennett]...compared high frequency trading to buying a first-class ticket on an airline, saying these passengers are paying for the benefit of getting on and off the plane first. “Is there anything unfair about that? Doesn’t sound like it to me.”
He also goes on to point out the "obvious" fact that HFT has been in the news, clearly missing the whistle-blowing by Haim Bodek. Even 10 Downing was asking Nanex questions over 2 years ago as they were clearly curious what was happening in financial markets. Just what has FINRA been up to aside from making sure minor infractions prevent people from trading for FINRA registered brokerages lest our financial markets lose their integrity?
Talking high-frequency trading, FINRA's Bennett says preferential access sounds like buying first-class tix, doesn't sound unfair to him
— WealthManagement.com (@wealth_mgmt) April 25, 2014
Via WealthManagement:
Benefitting [sic] from faster access to the markets is akin to buying a first-class plane ticket, and “doesn’t sound unfair,” said the top cop at Wall Street regulator FINRA.
Speaking on a panel at a conference sponsored by the Practicing Law
Institute Friday in New York, J. Bradley Bennett, the chief of
enforcement at FINRA, was reacting to a question on high-frequency
trading and a discussion of Michael Lewis’ recent book Flash Boys.
Bennett was on a panel with the enforcement heads of the SEC, the Consumer Financial Protection Bureau and the Dept. of Justice.
Bennett pointed out the focus of Lewis’ book was on the possible
preferential access these traders have and that “their pipes may be
faster."
He compared high frequency trading to buying a first-class ticket on
an airline, saying these passengers are paying for the benefit of
getting on and off the plane first. “Is there anything unfair about
that? Doesn’t sound like it to me.”
Bennett also noted that the entire market structure has shifted
dramatically. Post World War II, a stock was held, on average, for 4
years. Last year, that dropped to 2.8 seconds, he said.
Bennett spent two decades as an attorney defending financial advisors [sic]
and financial services companies before joining Wall Street’s
regulatory agency in 2011. He oversees a staff of some 300.
FINRA identified HFT as a regulatory priority in 2014, focusing on
“abusive algorithms” that threatened the integrity of the market. But
some critics go further, and claim faster access to the exchanges as
well as receiving priority data feeds lets these firms act on
information faster than others, which is akin to front running.
“Obviously it’s been a topic in the news,” SEC’s head of enforcement
Andrew Ceresney told attendees. “It’s an area we’ve been focused on for a
period of time,” he added, noting the SEC has several ongoing cases
around high-frequency trading.
There's your private SRO at work for you 'Murica
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Remember who appoints these people, the people who bought wall street from the political folks at the Whitehouse. A Man sees what he wants to see, hears what he is told to hear, and does whatever the highest bidder pays for. WE second rate lawyers have to exist too, besides he likes the Whitehouse.
nothing fair about that; oh yea! fuck your airline, the plane and every stew that gave you a hummer, you fucking cock sucking arrogant assjobbing dick licking fuck face...
Can I add clapdoctor to that resume?
Last time I was in First class the stewardess did not allow me to go through the regular cabins luggage and take what I wanted. Nor was I allowed to change the landing destination of the flight as it fit my desire of the moment. What airline is he flying on? Oh wait, he's likely used to flying on a private jet where it is possible to do as he likes, and flying first class was just an analogy for the peons. Out of touch in so many ways, it makes poetic criminal sense that he's the top cop.
He is most likely flying on a private jet that the coach class passengers are paying for. Just another useless parasite!
Yes, on any airline that I have ridden the first class passengers are not allowed to steal money from the coach class passengers without their knowledge and with full approval of the airline and FAA.
Odd metaphor. On an airplane you all leave and arrive at the same time.
nice catch
Bradley Bennett looks like a second rate lawyer, a first class putz and a big law wannabe.
so what would that actually look like?
Perfect material for a Senator....and later, President.
Jail would be best.
A jail sentence is too good for this creep. He should be sentenced to death and drown in a pool of untreaed sewage.
as a FINRA arbitrator, i can attest to the general bureaucracy-ness of the organization. the respondent (usually a broker or firm) has 2 to 3 lawyers on their side of the table, while the claimant (usually an investor) has 1 or 2. the chair of the 3 man arbitration panel is a lawyer also, so you end up with a room of 5-7 lawyers with one claimant and one respondent, and the occassional witness. i have had cases set hearing dates several years in advance, and delays by both sides will usually cause postponements of at least a year. all this for a system that was supposed to replace the inefficiency and stodginess of the courts with expediency and cost savings - didn't happen.
My favorite thing about FINRA is how they jack up everyone's E&O every year to cover their retirement plan which they prudently chose Madoff to invest for them.
"[FINRA Chief] Compares HFT To Buying First Class Plane Tickets"
Hmm. In the same way investor crooks buy first class plane tickets by trading on insider information ? He's making some good points. I'm glad FINRA and the SEC aren't managed by Wall St insiders.
"compared high frequency trading to buying a first-class ticket on an airline..."
Buying a first-class ticket does not relegate other passengers into the cargo hold.
what would the head of finra think if people could just pay money and get preferential treatment from say the justice system, the legislature or the taxing authorities?
oh, wait ....
for the High Flying Travelor.