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Triple Whammy Shocker: Goldman Shutting Down Sigma X?

Tyler Durden's picture


Back on March 21, before the release of Michael Lewis' Flash Boys and before the infamous 60 Minutes interview, when Goldman COO Gary Cohn wrote his infamous WSJ Op-ed bashing HFT, it was clear that something was afoot. That something became promptly clear when it was revealed that Goldman is among the core backers of the pseudo dark-pool IEX exchange popularized as the protagonist in Flash Boys, and juxtaposed to the frontrunning, and faceless, HFT antagonist that Lewis maanged to demonize so well in the span of a few hundred pages, he promptly provoked a renewed investigation by the FBI, the SEC and DOJ into HFT.

A few days later, the shocker became a double whammy when Goldman announced that in addition to turning its back on HFT which had served it so well for years, the firm would also say goodbye to the NYSE and its designated market maker post, the last remaining legacy of its $6.5 billion Spear Ledds & Kellogg acquisition from 2000. That Goldman was asking mere pennies on the dollar for the residual assets also showed just how "highly" Goldman valued said legacy operation.

This is what we said at the time of the announcement:

... What is unexpected, is the complete transformation Goldman has undergone in in the past several weeks: first Goldman, the bank that everyone else on Wall Street always imitates, waving goodbye to HFT, and now departing the NYSE?


When the world's most intelligent FDIC-backed hedge fund, pardon, bank says the current market structure is no longer necessary to Goldman, people notice, and promptly imitate.


To be sure - if this is not indicative of a major storm coming for traditional "lit" market structure (as opposed to dark pools of which IEX, until recently, was one and where Goldman has nearly complete dominance with Sigma X), we don't know what is.

Moments ago we got the third and final "shocker" in this series of stunning disclosures by Goldman, this time involving Goldman's own "unlit" venue - one involving its own Dark Pool - the infamous, and market dominant Sigma X, which according to the WSJ, is about to be shut down!

Goldman Sachs Group Inc. is considering shutting down one of the world's largest private stock-trading venues, according to people familiar with the matter.


In conversations with market participants over the past several months, Goldman executives have broached the subject of closing its so-called dark pool trading operation, known as Sigma X, the people familiar with the matter said.


Goldman executives are weighing whether the revenue the firm generates from operating Sigma X is worth the risks that have been highlighted by a series of trading glitches and growing criticism of dark pools, the people said.


No decision is imminent, and Goldman could keep the business, according to people familiar with the discussions.

That this is a momentous development, if true, needs no explanation. Because while Sigma X may or may not be the top dark pool in the industry - a claim that Credit Suisse can possibly make alongside Goldman- Sigma X, which we have written about extensively over the past five years, certainly provides Goldman with not only extensive daily revenue but also gives the firm an inside look into what happens in the institutional marketplace, since the bulk of hedge funds and most mutual funds transact almost exclusively on dark pools now in an attempt to avoid precisely the parasitic HFT algos that have been the topic of so much discussion in recent days.

And if Goldman is willing to exit not only HFT, not only legacy lit markets entirely, but also its dark pool, then something truly big and transformational is coming to not only the existing market structure, but something that will be so disruptive, that for once we can't wait to find out just what Goldman has up its sleeves, sleeves which also happen to house the key lawmakers in the Beltway.

Why is Goldman doing this now? We don't know. It is worth noting however that on page 234 of Flash Boys, Michael Lewis cites Ron Morgan and Brian Levine, Goldman Partners and co-heads of Goldman's global stock markets, who said that "Unless there are some changes, there's going to be a massive crash, a flash crash times ten."


Goldman exiting virtually all venues except the upstart IEX is certainly a major change.

Another thing that is certain: take a long, hard look at the market as you know it today, because in less than a year it will be history.


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Tue, 04/08/2014 - 19:30 | 4637415 johngaltfla
johngaltfla's picture

Which means that Goldman and other Fed thug member banks are continuing the shift of capital to overseas branches in Hong Kong and Singapore where capitalism is still somewhat the law of the land. The NYSE and NASDAQ are now officially fooked.

Tue, 04/08/2014 - 19:38 | 4637443 Slartebartfast
Slartebartfast's picture

Or maybe Jim Willie is right, and China bought JP Morgan a couple months ago.  It sure would answer a lot of the changes they've made lately.

Tue, 04/08/2014 - 19:41 | 4637455 TeamDepends
TeamDepends's picture

Blythe knows how to massage markets.

Tue, 04/08/2014 - 19:44 | 4637465 Arius
Arius's picture

watch Margin Call ... you want to know why I make the big bugs? 


i dont hear a beep ... i dont hear the music ....


time to get out ... FAST



Btw, blythe is a nobody just some red meat for dogs

Tue, 04/08/2014 - 19:54 | 4637485 McMolotov
McMolotov's picture

Watch "All is Lost," the same director's movie from last year with Redford. It also applies to this situation.

There's a hole in the boat that can't be repaired, it's half-submerged, and there's a big-ass storm coming.

Tue, 04/08/2014 - 19:58 | 4637496 TeamDepends
TeamDepends's picture

Is the hole on the port side?

Tue, 04/08/2014 - 20:08 | 4637527 Algosaurus Rex
Algosaurus Rex's picture

Is it finally time to buy those gnarly deep out-of-the-money puts? 

Tue, 04/08/2014 - 21:06 | 4637619 Ignatius
Ignatius's picture

Goldman stole what they could and are moving on, greener pastures.

To answer:  Yes, maybe.

Tue, 04/08/2014 - 21:22 | 4637693 old naughty
old naughty's picture

We're all wrong (eh, ignorant)! We have seen the visible hand stirring...

Who knows what the other hand is doing...juxtaposing for the biggest whammy, maybe?

So, is Brad playing the Flash Boy, or not?  Kept enter-tainted.

Tue, 04/08/2014 - 21:54 | 4637808 Ranger4564
Ranger4564's picture

GS knows the market is to tank any day now, so why stay in. I mentioned it a few years ago... JPM will be collapsed with just about every other large bank, and GS will be spared, since it's the political arm of the oligarchy. The financial arm, once collapsed, will suck in all sorts of money from every nook and cranny around... bail in, entitlements, insurance, lawsuits, bankruptcies, everything will funnel to the top of the fucking pyramid... oligarchs. We will be peasants. GS will be a kept lapdog, but they don't mind, as long as they're not looted like us.

I think it's time we skewer the bankers and the oligarchs... well, it's been time for a long time but some people are a bit slow. Let's GO!

Tue, 04/08/2014 - 22:58 | 4638012 markmotive
Wed, 04/09/2014 - 01:16 | 4638294 Richard Chesler
Richard Chesler's picture

There are clearly easier ways to steal.


Wed, 04/09/2014 - 03:48 | 4638327 weburke
weburke's picture


Tue, 04/08/2014 - 21:56 | 4637816 nickels
nickels's picture

Something is going to declared illegal, and Goldman will be able to say "Oh we stopped doing THAT sort of thing DAYS ago."

Tue, 04/08/2014 - 22:01 | 4637839 Soul Glow
Soul Glow's picture


Tue, 04/08/2014 - 22:15 | 4637885 aVileRat
aVileRat's picture

A fitting phrase for the times:

Sonny Crockett, “So, fabricated identity, and what’s really up, collapses [sic] into one frame—you ready for that on this one?”

On a serious note, and stepping out of the Alex Jones zone: Sigma X was good for masking trades, but the rate of Sigma use by large block players is well down since it's early days. A large block, even if carved up 100/(pi) ways, often is so large by stat mech that the use of Sigma is only good for buyers flashing. Sellers on big desks realized it was no better at moving than simply hiring a specialist bank to do a cross or upstairs. If the guy upstairs busted or failed to trade on stupidly large lots, then you could very easily (and still can) get the jerk fired. Sigma ? derp.



Tue, 04/15/2014 - 09:12 | 4660288 seataka
seataka's picture

Sounds just like $cientology...


Tue, 04/08/2014 - 22:19 | 4637836 Soul Glow
Soul Glow's picture


To highlight, what GS is doing....

First and obviously, the markets are fucked up.  There has been needed a destruction - and think about the word I just used - a distruction of an asset class.  The Fed set this up by their loose monetary policy.  It should be, or should have been, the dollar, yet due to deflation the Fed was able to constitute massive dollar printing without achieving hyper inflation; and yes, achieving.  The Fed - and all Central Banks - padded the stock market back to "normal" while lessoning the values of currency.  This was achieved because all Central Banks floated their currencies down at the same rate -think gravity and all falls down.  

Next let's remind ourselves gold - and all PMs - are undervalued.  This should be understood without context, but let's give a little:  ask yourself who owns gold and who is buying it.  Ask who is manipulating even if the manipulation is done by words and not by trading.  The fact is Bernanke himself talked gold down his whole tenure.  That should be reason enough to understand it is undervalued.

Next bonds; what the fuck is a bond?  It's a promise to pay and there is not a treasury in the world that has over leveraged themselves.  Sure China is owed trillions of dollars, but the value of their banking system lies not on what they are owed it lies in what they have.  They have not been payed by the Untied States yet, among others, so they have nothing of it.

Next the stock market - look no further than Alcoa to understand the Aurthor Anderson type accounting that is taking place.  Then use simple P/E metrics and we find the stock markets in the US are over valued times two, in the very least.

So when it comes to fleeing the scene of a crime - and the perpetration of finance is nothing less - Goldman is getting the fuck out.  That should sum it all up.

By the way, your dollars are still good to trade so what do you value?

Tue, 04/08/2014 - 23:01 | 4638032 EggSlayer
EggSlayer's picture

Actually, the Fed didn't print "massive" amoutns of dollars, they actually only increased the money supply by about 6%. Inflation is still quite low.

If you understood the China banking system (which I don't competely, but I understand enough to know this) they are currently in a credit bubble similar to that of America in 2008. From what I understand their banks are using repos similar to the way America before '08.

Apparently this guy has done valuations on every company and found that according to their P/E ratios, they are all overvalued by 2X.




Tue, 04/08/2014 - 23:17 | 4638084 Soul Glow
Soul Glow's picture

You need to keep reading ZH and stop writing here.  Come back when you are on the level.  Until then get off the porch.

Wed, 04/09/2014 - 01:09 | 4638278 Nehweh Gahnin
Nehweh Gahnin's picture

Sorry bro, you are the one who might want to step off the porch for a minute, take a deep breath, and listen.  The dude is telling you why deflation is occurring, as opposed to the hyper-inflation hysteria that has been the rage the last several years.  He is also connecting the delfationary nightmare posed by China's huge bubbles, meaning that if you thought '08 was something, you ain't seen nuthin' yet.

Reactionary shots leave your chin open to that left cross, fighter boy.

Wed, 04/09/2014 - 03:05 | 4638445 Bananamerican
Bananamerican's picture

Rice Chex 2011 $2.60

Rice Chex 2014 $4.60

highly deflationary

Fri, 04/11/2014 - 18:37 | 4649352 MeelionDollerBogus
MeelionDollerBogus's picture

Not for a second. Zero proof of deflation has been provided, nor shall it be for it isn't happening.
Prices are up, money supply is up, and that's inflation, not deflation.

Wed, 04/09/2014 - 17:19 | 4640885 EggSlayer
EggSlayer's picture

Dude, what does "on the level" mean to you? On the level of conspiracy theorists who have their head buried so far in the internets asshole that they fail to see the facts of what actually goes on outside of their computer screen? Sorry, but I will never stoop there. I enjoy reading ZH, but you need to take your news sources with a grain of salt.

Fri, 04/11/2014 - 18:35 | 4649348 MeelionDollerBogus
MeelionDollerBogus's picture

on the level means: not outright fraud. Government saying inflation is 1.5% and you repeating it is like saying dynamite is safe & comfy for making beds out of, and you repeating it. It's a total lie, absolute and easily proven by looking at real prices and real money supply. Inflation is 8% because inflation must at all times include real actual food prices and real actual energy prices.

Wed, 04/09/2014 - 02:49 | 4638428 californiagirl
californiagirl's picture

"Inflation is still quite low."
Please explain that to my groceries and household supplies bills. They didn't get that message.

Thu, 04/10/2014 - 12:44 | 4640877 EggSlayer
EggSlayer's picture


Fri, 04/11/2014 - 18:32 | 4649318 MeelionDollerBogus
MeelionDollerBogus's picture

"Inflation is at about 1.5% according to the consumer price expenditure idex."

which is a fraud for deliberately excluding consumer prices.
Consumer prices include food, fuel, rent & utilities. The CPI excludes these so real inflation is 8% not 1.5%.

Just what kind of crap are you trying to pass off on us?

I saved the whole thing so a re-edit can't hide it and now I've replied, you can't re-edit again.

Wed, 04/09/2014 - 04:59 | 4638515 Bernoulli
Bernoulli's picture

Yes absolutely! The pricing of these things is seriously in favor of bears. Ok, I don't have much success to prove it (currently I'm kind of bleeding), but hopefully soon.

Let's say the Nasdaq tanks 20-30% in one week. How much south do - for example - "momentum stocks" go?

I'd guess something like minus 40%-50%?!? But maybe also minus 60%? Or minus 70%? Who knows? I wouldn't dare to say it is more likely that they stop at minus 40% than at minus 70%. But somehow, magically and amazingly, the people selling those out of the money puts believe there is some kind of huge difference. Otherwise, why would they EVER take such an insane downside risk? This to me is the most unbelievable thing in the "markets". Almost like a gift of god.

Take the example of PCLN (read now: The Priceline Group!):

On my most basic online bank trading tool, I could buy today (once the markets open) PCLN MAY14 750P for 1 dollar, multiplier 100, expiring on 17 May 2014 (more than 5 weeks from now). Buy a two of these Puts, pay 200 bucks and sit back and relax (ok, ok, there are some fees, but they are so ridiculously unimportant for this "business case", that I am not even going to spend another minute on that).

If you believe the market will tank (or "just" the momo's will tank), PCLN will also tank. They will even tank more. FOR SURE!

I would even say: if the Nasdaq loses 20% in the next 5 weeks, PCLN will lose at least 40%. Maybe 50%.

Currently, PCLN is trading for 1'187.54 USD. 750 strike would be minus 36.8%.


So here is your business case in an easy 1-2-3 guide:

1) Find some indestructible optimist that will sell you those two put options for 200 USD online (He: "free money!" "I will never lose a fucking penny with these, because they are so far out of the money!" "Ha, ha, I feel so great because I do such smart trades"; you: "Thank you very much. It was great doing business with you")

2) Buy some popcorn and beer and sit back and relax in front of your screen

3) Market tanks. Panic. Awesome. PCLN minus 40%: Your two options are now worth 8'000 USD; go and sell those two options and party (or wait for minus 50% and get 30'000 USD or minus 60% for 54'000 USD, etc.; you decide!); the most important thing: Your downside is/was 200 USD! IMHO this is a nice gamble...

Unrealistic? Stocks never fall that fast? This never happened?

Wait and see....

The only thing to be scared of is really if they close the markets down ("out of order because of panic"). This would be the biggest rip off ever and would make me a bit upset...


Fri, 04/11/2014 - 18:13 | 4649280 MeelionDollerBogus
MeelionDollerBogus's picture

I think you're missing a detail. Both volume & open interest are known. If enough open interest is on the wrong side, why not print just prior to expiry to cause the maximum number of expiries, then let the price go the other way 1 day too late to be worth anything?
When the market is 'rigged' it means 'completely run by fraud'

Fri, 04/11/2014 - 18:23 | 4649306 MeelionDollerBogus
MeelionDollerBogus's picture

I think you're missing a detail. Both volume & open interest are known. If enough open interest is on the wrong side, why not print just prior to expiry to cause the maximum number of expiries, then let the price go the other way 1 day too late to be worth anything?
When the market is 'rigged' it means 'completely run by fraud'
Look at the 10 year chart for PCLN and same for the S&P index.
See the dip in 2008 for both. Guess what. PCLN didn't dip to lows before the 2004 prices and S&P did. : scatterplot this before you presume there's a correlation.
Until you have an equation describing a time-window and R2 value you are just flipping a coin.
You could just hold HVU which is -11x power to the S&P500 and since it's not an option there is no expiry time to bet against.

Tue, 04/08/2014 - 20:04 | 4637512 Four chan
Four chan's picture

who needs hft's when you can openly steal from your own stupid clients, in house,

and short against all your long calls? they never lose one trading day for a reason,

they are completely dishonest and have bought every person who could regulate their theft.

Tue, 04/08/2014 - 23:58 | 4637905 Soul Glow
Soul Glow's picture

You obviously don't understand HTF then.  Imagine shorting your clients and then leveraging the short and then hypothecating the short then rehypothicating the short then flipping the short....

Wed, 04/09/2014 - 00:12 | 4638195 Tall Tom
Tall Tom's picture

Just got done watching the movie. Not exactly Mc Molotov. The new hole was caused by a collapsed mast. The repair to the initial damage held. Look at the location.


However our economy will sink as fast as that boat. There will be no rescue.


Drowning is an ocean of debt...drowning.

Wed, 04/09/2014 - 02:15 | 4638372 kurt
kurt's picture

He left the ample life vest on the back of his boat as it was sinking. He could have reinforced the patch job from INSIDE the boat. Even those backrests could have been wedged against the patch to stop it from moving and flexing. Surely he had tape. He could have taped the hell out of it. Was that ALL the resin? Why'd he wait so long to get the water jug out? How stupid was he building the fire so high in a fucking rubber boat? Why did he leave that hatch boards out and the tarp off the hatch when he was on deck. Why did he take so long to get the safety straps on his body in a heaving ship? Most lost at sea see multiple ships he should have know that and expected to be passed up a few times instead of getting to be such a wussie.

Wed, 04/09/2014 - 07:17 | 4638607 Offthebeach
Offthebeach's picture


summer cruise 1964

Thats sailing.

Tue, 04/08/2014 - 20:03 | 4637494 Thought Processor
Thought Processor's picture



Lots of skeletons in the Dark Pool closets.  And any investigations into the HFT world will inevitably lead to the Dark Pools.




My theory is that they are using the Dark Pools to balance the trades out en mass somehow thereby making the market easier to push up.  They'd be able to soak up any broad based 'investor' outflows and then have confidence that the on balance 'input' of liquidity from QE would then automatically push the markets upward.  It's a play on top of the QE play that, if you could pull off would pretty much guarantee mamoth profits on a daily basis especially if you are running the HFT's also.  You could also divide each 'book' up by primary broker.  It's doable, and is / was likely being done.

Of course then the only reason to stop this is if people were catching on (it's market manipulation on a grand scale) or the QE is really ending and the unwind cometh (In which case they've already lined up the short option trades in the dark pools).

Both spell one thing for the markets in general.  Down in a hurry.

Food for thought.


Tue, 04/08/2014 - 20:38 | 4637585 new game
new game's picture

great thought, but with qe waning this is the time to close the boiler room operation, look forthright and move on.

makes perfect sense. time for gs to find a new mark...

Tue, 04/08/2014 - 21:20 | 4637699 NotApplicable
NotApplicable's picture

Goldman just orchestrated the creation of a monopoly on Market 2.0. The final shoe falls. I'm extremely impressed.


Tue, 04/08/2014 - 22:58 | 4638015 mccvilb
mccvilb's picture

Gotta love the Squid. I could see them exiting the scene stage left ever since the Rolling Stone articles branded them with the letter A. They've needed to create a new image for themselves for awhile. Now to find some sucker willing to buy a couple of office buildings in lower Manhattan and NJ that may be underwater soon.

Wed, 04/09/2014 - 02:07 | 4638356 SameAsItEverWas
SameAsItEverWas's picture

You got something there!  SEC regs have it illegal to do wash sales, i.e. go long and short the same position simultaneously.



Fri, 04/11/2014 - 17:55 | 4649213 MeelionDollerBogus
MeelionDollerBogus's picture

I'll buy that for a dollar1.

1one 1988 dollar would be equal to more than $4.50 in 2014 purchasing power from inflation

Tue, 04/08/2014 - 20:00 | 4637504 EggSlayer
EggSlayer's picture

what a great movie

Tue, 04/08/2014 - 23:08 | 4638053 palmereldritch
palmereldritch's picture

It's been done in the Grifters as well.  And like in the original movie, the long con is finished and it's time to shut the operation down.

Fri, 04/11/2014 - 17:48 | 4649198 MeelionDollerBogus
Tue, 04/08/2014 - 20:31 | 4637579 Squid-puppets a...
Squid-puppets a-go-go's picture

you know that point in pirate movies where the kraken releases its grip on the ship and goes under the waves again. and you know its not dead so its only a matter of time before it resurfaces to continue its destruction?

thats this moment

Fri, 04/11/2014 - 17:43 | 4649175 MeelionDollerBogus
MeelionDollerBogus's picture

LOL. Too funny in being so wrong.
When the FEMA camps are formed overnight around major population centers to displace people from homes and loot all property held within, that's when the kraken strikes.
Then the day the troops all pull back and the people think they can go free, that's when the kraken is hiding in the water.
Then the nerve gas bombs drop from drones.
THAT is when the kraken has resurfaced to show you up close & personal it has Goldman Sachs tattooed in gold on every tentacle. And demolish everything.
The nerve gas, naturally, will be blamed on drones 'hacked'  by Russia and/or Iran.

Tue, 04/08/2014 - 20:54 | 4637623 Deathrips
Deathrips's picture

Theres this guy cliff that is expecting some big news tonight.

...head politicians have done it again and doubled down on stupid. We expect BTC, gold, and then silver to start reacting to [shocking] geo-political events on Tuesday, April 8, 2014, late in day Pacific Coast Time.


Lets see if it happens...if not its all good. cliffs cool.




Tue, 04/08/2014 - 21:06 | 4637660 Ralph Spoilsport
Ralph Spoilsport's picture

Cliff lost a lot of credibility when the Global Coastal Event didn't happen when he predicted. He's also had a lot of bad breaks recently in his personal life. But yeah, Cliff is cool.

Tue, 04/08/2014 - 21:57 | 4637814 Deathrips
Deathrips's picture

Cant be right all the time...especially with shenannigans like are freequent in times like these. Cant really fault him for that.

He did loose with the GCE..but england, florida and phillipines had coastal events. Come to think of it, so did new york durring Sandy. Maybe Cliff got a bite of it. Hes talking about all in on silver mini contracts, starting today. I have played that game and will pass.

I think he will be the first to say the webbot is not accurate on dates and times. He also hes just relaying the data. I wish him the best.


Hes a good guy...different method..interesting conversation.





Tue, 04/08/2014 - 22:30 | 4637925 Nemo DeNovo
Nemo DeNovo's picture

+100 for the Clif reference.


I intevieweed him a few imes when I still did a radio show, he truly is a good dude, as far as the whole GCE issue goes, I think we will see most if not all of his GCE calls it just will not be all in one day, it will play out over seceral years or decades.


Just my 2c


~Be Well


Wed, 04/09/2014 - 00:54 | 4638259 Ralph Spoilsport
Ralph Spoilsport's picture

Cliff didn't lose face with those who understand what he's been doing all these years with the web bot project and I didn't mean to imply that. He went on a lot of interview shows because he was warning about a possible catastrophe and that attracts people that are only interested in another apocalypse. When the GCE didn't happen like the data led him to believe, many people started criticizing him (unfairly).

Cliff reads and links to ZH, so if you read this thread Cliff, you've got some fans here.

Fri, 04/11/2014 - 17:39 | 4649154 MeelionDollerBogus
MeelionDollerBogus's picture

WEB BOTS was wrong all the time.
There was no credibility to be lost.

It was a great matching engine: most incredible rumours matched to most gullible listeners.

Fri, 04/11/2014 - 17:32 | 4649140 MeelionDollerBogus
MeelionDollerBogus's picture

So, gold +$1000 and BTC - $1000 ?

Wed, 04/09/2014 - 06:50 | 4638578 Archduke
Archduke's picture

the first one out is not in panic.

Tue, 04/08/2014 - 21:35 | 4637740 newworldorder
newworldorder's picture

That knowledge may be dangerous to her health.

Tue, 04/08/2014 - 21:12 | 4637674 putaipan
putaipan's picture

false flag e-terrorist attack in 3...2... (just in time to cover the tracks of the insolvency implosion coming in 3...2...) 1 .

Wed, 04/09/2014 - 04:25 | 4638498 A Man without Q...
A Man without Qualities's picture

China bought JPMorgan?  Seriously, you need to get a grip on reality.  It would be like China buying the Pacific Fleet...

Fri, 04/11/2014 - 17:30 | 4649135 MeelionDollerBogus
MeelionDollerBogus's picture

Which they can also afford and since the ones holding it now are deeply in debt that would help them pay off debt.

Tue, 04/08/2014 - 19:39 | 4637445 kaiserhoff
kaiserhoff's picture

Anyone else see the dots connecting to unusual banker mortality?

Tue, 04/08/2014 - 20:10 | 4637532 Nikki Alexis
Nikki Alexis's picture

Wow, they really want to blow this up.  GS must be piling up their shorts 24/7.  It's the same as when they shorted all of that "Triple A" MBS before the housing crash.  QE ending.  Soros shorting US stocks with over a Billion $.  Flash Boys comes out.  Too many of the bigs behind this to be coincidental.

I finally got my news site going.  ZH is in the "Independent News" category.  Check it out.



Tue, 04/08/2014 - 22:34 | 4637942 mccvilb
mccvilb's picture

Nice job, Nikki. Bookmarked you. I've been working on and off on something similar directed at seniors. I'm involved in an innovation and materialization edX cohort at a well-known college. Would love to get together in the future to exchange ideas and talk about stuff like intellectual property rights and curation, Maybe meet in a ZH chatroom here sometime. Let me know if you're interested.

Fri, 04/11/2014 - 17:23 | 4649114 MeelionDollerBogus
MeelionDollerBogus's picture

This is what I think of intellectual property rights:

Fri, 04/11/2014 - 17:29 | 4649132 MeelionDollerBogus
MeelionDollerBogus's picture

This is what I think of intellectual property rights:

Wed, 04/09/2014 - 01:41 | 4638326 Fuh Querada
Fuh Querada's picture

@Nikki A : thanks, an interesting idea for a site, but the drag and drop feature doesn't work on my iPad.

Tue, 04/08/2014 - 20:32 | 4637580 BabylonDeer
BabylonDeer's picture

My guess:

1. GS is pushing some VERY big "changes" in the current financial world and need to "clean-up" the elements that are oposing them

2. Something really big and bad is coming and "someone" need to clean-up the "toungues"

3. Something really big and so fucking bad is coming, that the government saw in need to "punish" the ones that created the situation.

4. Maybe Russia is somehow involved and Cold War 2.0 is going in full scale and the dead banksters are the soldiers.

It's somehow strange that both Ukraine issues started at almost the same time that the banker corpses. 

Tue, 04/08/2014 - 20:48 | 4637609 Berspankme
Berspankme's picture

Doing God's work. Fuck You Blankfein- I hope to piss on your grave one day 

Tue, 04/08/2014 - 21:33 | 4637731 newworldorder
newworldorder's picture

I hope you are young and in good health to outlive that **cktard.

Tue, 04/08/2014 - 22:13 | 4637876 Keyser
Keyser's picture

I don't know about that, bankers seem to have a rather high mortality rate lately. 


Tue, 04/08/2014 - 21:09 | 4637668 Bangin7GramRocks
Bangin7GramRocks's picture

Maybe it's much simpler. The Supreme Court ruling means they can buy all of the politicians without any campaign finance hassles. Soon they will just get billions from the gubmint direct deposited into the partners personal accounts. No need for all this shit now.

Wed, 04/09/2014 - 00:52 | 4638257 Tall Tom
Tall Tom's picture

You must be Banging7GramRocks...


I do not know where you are getting your dose of misinformation but...


From Reuters...


"...the U.S. Supreme Court on Monday rejected a challenge to an Iowa law that bans corporate contributions in state elections."

"By opting not to hear the case, the court left intact an 8th U.S. Circuit Court of Appeals ruling from June 2013 that upheld the ban.";_ylt=AwrSyCV5z0RTQysArEfQtDMD


Now that means that Direct Campaign Contributions are still currently BANNED. There is no precedent law that lifts that ban.



Wed, 04/09/2014 - 05:13 | 4638523 Bangin7GramRocks
Bangin7GramRocks's picture

Touchy little cunt huh! You must be a politician if you are going to defend the utterly corrupt U.S. political process. They are all for sale and the transaction just got a bit easier. Good day sir!

Fri, 04/11/2014 - 17:10 | 4649041 MeelionDollerBogus
MeelionDollerBogus's picture

Depends: are you talking the view down from the roof (those are people, not dots!) - or all close up where the nails went in?

Tue, 04/08/2014 - 19:45 | 4637446 knukles
knukles's picture

Avoid investigations, fine, penalties and most importantly, bad press, shift money overseas to more tax friendly, less regulated more opaque venues.
What could go wrong?
Wrong, you say?
Just think of all the additional profits for the firms, saving taxes, less regulations and...
... are you ready?

No more gobs and gobs, oodles and oodles of campaign contributions, donations, and senior management ushered to the warthouse, testimony in front of congress....
Do you realize how pesky those fuckers are with their incessant demands for investigations and money, money, money, and the dumb fucks we gotta employ via the revolving door?

PS  For you serious alcoholics out there, I got a new drinking game for ya'
Every time Kerry threatens serious sanctions, red lines, or other empty promulgations or, the SEC, Treasury, whothefuckever, say it's under investigation, slam a half pint of Smirnoff

Tue, 04/08/2014 - 21:19 | 4637694 tenpanhandle
tenpanhandle's picture

To rough for me. One kerry redline and a sanction and I'm out cold.  Came up with a new drink...1/2 papaya juice+1/2 Smirnoff...I call it a pap-smir.

Tue, 04/08/2014 - 21:27 | 4637714 Spumoni
Spumoni's picture

I prefer slamming Rumanovs. Good game, tho...

Wed, 04/09/2014 - 00:13 | 4638196 willwork4food
willwork4food's picture

What about a few real nice cold good shandy beers?

Tue, 04/08/2014 - 21:28 | 4637718 newworldorder
newworldorder's picture

I like your thinking, but - paying money to politicians is nothing more than a "protection racket." Once you pay it however, you have to be absolutely sure that the protection will be there when you need it. Despite all the rave reviews of off shore markets, I think offshore Asian and Caribbean entities scare the hell out of the money class. These are markets they do not control and in most cases "off with their heads" may be more a reality than fiction,- or perish the thought of "off with their money," without the protections of  "uncle sugar" or Yell-in and and the Pied Pipers.

Wed, 04/09/2014 - 00:13 | 4638197 TheObsoleteMan
TheObsoleteMan's picture

Play that game and you'd be dead the same day. BAC of 7 or 8 for sure!

Wed, 04/09/2014 - 00:57 | 4638263 Tall Tom
Tall Tom's picture

Knuckles...I am shocked because you are usually spot on.


Direct Campaign Contributions are still currently BANNED as the Supremes refused to hear the case.


Here is the article...;_ylt=AwrSyCV5z0RTQysArEfQtDMD


It is a Reuters source.

Fri, 04/11/2014 - 17:02 | 4649005 MeelionDollerBogus
MeelionDollerBogus's picture

SO.... when the congresscritters who frequent Thailand for young boys are overseas where the money is, the Goldman Gang won't send brown bags with cash to their hotel rooms?
Hmmmm... ok!

Tue, 04/08/2014 - 19:40 | 4637451 zaphod
zaphod's picture

My interpretation on what has happened. 

Goldman started HFT and made crazy money, but then their key people left and setup better more comptetive shops outside of GS and were beating Goldman. This is a cardinal sin.

So Goldman is leaving the market and using its powers to ban anyone in HFT. 

The test will be if all the people left after HFT shops close down go back to Goldman or not. 

Tue, 04/08/2014 - 20:10 | 4637531 The man with po...
The man with pointy horns's picture

I guess it's becoming harder to do God's work.

Tue, 04/08/2014 - 21:33 | 4637734 Cthonic
Cthonic's picture

Or easier!

Tue, 04/08/2014 - 20:27 | 4637573 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

It is all good when everyone is making money, especially the big boys. When the big boys stop bringing in the bucks, shut everyone down.

Tue, 04/08/2014 - 20:37 | 4637584 KickIce
KickIce's picture

I even wonder if they encouraged it at some point, the more HFTs the more stocks inflate.  The question is, how long until the muppets realize they're in an over valued market because unless the investment bankers are already out of the market you can bet HFTs will work the same way on the way down.  I would be interested to know how many clients are seeking legal council in preparation for the upcoming slaughter.

Fri, 04/11/2014 - 15:56 | 4648759 MeelionDollerBogus
MeelionDollerBogus's picture

Silly Rabbit, MuppetVision(tm) can only see iPads and riskless returns.
Think they'll really see markets are over-valued? if your eyes were plastic balls glued to a foam-ball how good would your vision be?

Fri, 04/11/2014 - 15:50 | 4648739 MeelionDollerBogus
MeelionDollerBogus's picture

I'm not touching HFT ever again until it's backed by the full faith & credit of the Honorable Jon Corzine!

Tue, 04/08/2014 - 20:04 | 4637489 Dr. Engali
Dr. Engali's picture

One thing is certain, we are closer to the end of our current system than we realize. Better be fucking prepared.

Tue, 04/08/2014 - 22:13 | 4637881 YHC-FTSE
YHC-FTSE's picture

+1 All that was needed to be said.

In case others didn't get the memo, that was the captain on the megaphone bellowing, "Abandon ship! Fuck the women and children". You don't close up shop when you're making money and you certainly don't make it public unless you know the sturmscheisse is going to wipe everyone off the map. 

Sigma x, HFT, JPM (closing commodities) - those are the details which catches everyone's attention - the big picture is the dollar and everything related to it collapsing in a heap. We all know it's coming,  so the only question that remains is how will the US go down? With dignity, honour, and hope in the revival of its constitution,  or  with insane murderous rampages of war followed by a banana fascist surveillance state? So far the latter seems more likely unless a revolution takes hold with someone like Ron  Paul at the helm.  Do we have years or months?  I don't know anymore after so many years of making predictions that haven't yet materialised. It seems close, but I say that every year. 

Short the markets? At your risk and possible peril. Zimbabwe's exchanges went to the moon before they started printing billion dollar bills. Why risk it when the profits will be paid in toilet paper? Stack, prep and pray. Don't lose your humanity when the shtf. 

Tue, 04/08/2014 - 20:10 | 4637529 williambanzai7
williambanzai7's picture

Tue, 04/08/2014 - 20:12 | 4637541 Kaiser Sousa
Kaiser Sousa's picture

hey is that Moordor...

Tue, 04/08/2014 - 21:42 | 4637577 williambanzai7
williambanzai7's picture

Actually it is a mountain stream/pool on Koh Chang.

How the game is played: They let the big ticket fleece operators run wild for 5 years and then when finished, they sache in, roust a few fleas and tell everyone nothing else happened, move along...all just in time for the elections.

Yes, the sheeple are dumb fucks. Oh, HFT, yes they did a great job cleaning that mess up before it got out of control...hey did you catch Kim K's Instabutt in Phuket?

The final act is the Blythes, Lloyds and Jamies retiring to a nice satellite linked deserted Island never to look back, while the muppets get to wallow in the shit and havoc they created for the rest of their tittytained lives.

Tue, 04/08/2014 - 21:54 | 4637805 TheReplacement
TheReplacement's picture

You really should comment more often.

Tue, 04/08/2014 - 23:04 | 4638043 I am a Man I am...
I am a Man I am Forty's picture

no doubt

Wed, 04/09/2014 - 00:54 | 4638260 Blano
Blano's picture


Wed, 04/09/2014 - 01:19 | 4638299 Tall Tom
Tall Tom's picture

Well a picture is worth a 1000 words...


Sometimes, with WB7, it is worth a helluva lot more.

Wed, 04/09/2014 - 02:16 | 4638374 OldPhart
OldPhart's picture

*grumbles* not enough tittietainment in my life...

Tue, 04/08/2014 - 20:40 | 4637591 KickIce
KickIce's picture

Good stuff Banzai, I was also thinking in lines of the scene in The Mummy where all the dead (muppets) are screaming and trying to claw their way out.

Tue, 04/08/2014 - 20:46 | 4637604 tempo
tempo's picture

Maybe gold prices will soar w/o HFT? That scares everyone in power.

Fri, 04/11/2014 - 15:15 | 4648594 MeelionDollerBogus
MeelionDollerBogus's picture


... no wait... there it is again...


hyperinflation will rise the gold price. Actually getting or wanting the fiat units at those high prices will be impossible and/or Fail.

Tue, 04/08/2014 - 22:19 | 4637892 Jumbotron
Jumbotron's picture

Standby for even more shitgum murders and nail gun suicides.

Tue, 04/08/2014 - 19:31 | 4637418 TeamDepends
TeamDepends's picture

So it is OK to enter the market (lets his guard down)?

Fri, 04/11/2014 - 13:50 | 4648161 MeelionDollerBogus
MeelionDollerBogus's picture

in Soviet NYSE market enter you! Is be get ready for lube.

Tue, 04/08/2014 - 19:37 | 4637428 ebworthen
ebworthen's picture

GS is onto another way to game the system and customers, you can be sure of it.

Perhaps they will fold completely and form another company to divest themselves of liability?

Tue, 04/08/2014 - 19:40 | 4637434 Pool Shark
Pool Shark's picture



My thoughts precisely.

Brad Katsuyama seems so upfront and honest in the manner in which IEX was established; it sounds like a wonderful oasis in a desert of HFT.

Then, when I heard it was fully endorsed by Goldman, I immediately figured there must be a catch; Goldman has a backdoor or something.

I mean, Goldman wouldn't possibly endorse something that truly levels the playing field for everyone; would they?...



Tue, 04/08/2014 - 19:51 | 4637478 NoDebt
NoDebt's picture

I don't know.  For sure they got a tap on the shoulder that HFT is in the crosshairs- get away from it.  Owning places where it happens (exchanges and dark pools) is going to suck them into the liability circle- it happened under their roof, so to speak, even if they weren't actually doing the HFT trading.  HFT shops can pack up and head to points unknown very quickly.  Goldman doesn't have that option, so any liability judgements or government penalties will QUICKLY roll up to them- they have the deep pockets.  For sure, they don't want the coming HFT bloodbath to splatter on them and turn them into the next JPM- shelling out billions in government fines and legal judgements every quarter.

For now, I think this is all about limiting their liability exposure.  I can't see their next step beyond that, though I'm sure one (or several) already exist.

Tue, 04/08/2014 - 21:56 | 4637815 TheReplacement
TheReplacement's picture

I'm sure they are trembling at the thought of the SEC and DoJ actually doing something meaningful.

Tue, 04/08/2014 - 23:00 | 4638028 Lord Koos
Lord Koos's picture

I'm certain that what this is about is that Goldman knows that some serious reforms and shakeups are coming.  Since they always get the inside info from Capitol Hill, (maybe something along the lines of, "clean it up, or else"), they are merely doing what they've always done -- front running.

Fri, 04/11/2014 - 13:40 | 4648104 MeelionDollerBogus
Tue, 04/08/2014 - 19:35 | 4637432 surf0766
surf0766's picture

Positioning for the fall of the dollar

Tue, 04/08/2014 - 20:09 | 4637433 Kaiser Sousa
Kaiser Sousa's picture

bullish im sure for the Fraud Markets...

hey, anybody watchin how they r ONCE AGAIN pushing the phony paper price of Silver back under $20 per oz in the NO volume Globex????

they just wont give it up... i will be buying on the Feds bullshit session...

thanks again MoneyChanger fucks...


Tue, 04/08/2014 - 19:38 | 4637438 JenkinsLane
JenkinsLane's picture

This is ominous.

Tue, 04/08/2014 - 19:39 | 4637439 aleph0
aleph0's picture

So if the markets collapse because of "missing liquity" , they can blame the "closedown" which has been holding the Fake Market up so long ?

Best to check GS's short volume before they pull the switch

Tue, 04/08/2014 - 19:40 | 4637447 Pee Wee
Pee Wee's picture

This crooked market has chased away nearly three generations of investors.

Where is the truth - and handcuffs?

Tue, 04/08/2014 - 19:54 | 4637484 Arius
Arius's picture

the truth? you cant handle the truth ... and i really mean it!  it will blow your little mind, better stay away from it, you are better this way an innocent expecting justice from the government.

the handcuffs??? well ... for you?

Tue, 04/08/2014 - 20:15 | 4637543 ironmace
ironmace's picture

I can. I fully expect to wake up and turn on the TV to see hysterical pundits howling about the DJI taking the gas pipe.

I fully expect them to say, you have no money, no retirement, no house, no nothing left.

Then it just gets worse from there.

But not to worry, it's all according to plan. Their plan, not yours.

Tue, 04/08/2014 - 20:24 | 4637561 Arius
Arius's picture

exactly, thats why i am not waiting to see any handcuffs ... well, perhaps, on some poor shmack (Blythe comes to mind) that deserves it anyway, but not really a decision maker

Tue, 04/08/2014 - 21:46 | 4637775 Papasmurf
Papasmurf's picture

I fully expect them to say, you have no money, no retirement, no house, no nothing left.

I think that's already the case.  The announcement just hasn't been made yet.

Tue, 04/08/2014 - 19:41 | 4637453 starman
starman's picture

sigma x 1000 crashhhhh!

Tue, 04/08/2014 - 19:42 | 4637457 NOTaREALmerican
NOTaREALmerican's picture

Well,  that scams a wrap.    Yup,  what do we do with all these props?  I donno,  sell em.   Let get on with the next scam.

Tue, 04/08/2014 - 20:22 | 4637559 Ness.
Ness.'s picture

This is like watching the scene from the movie 'The Sting' when Shaw and Kelly start dismantling the fake horsebetting 'prop' shop... but in real life.  

GS doesn't fuck around when it comes to making money and avoiding losses (fines).  What's that old trader saying?  "First one out wins."  

Corn's a poppin'

Tue, 04/08/2014 - 21:52 | 4637796 aVileRat
aVileRat's picture

Remember that scene when the mark tries to get his money back upon the first misdirection (with the indian guy), yeah. That moment when his eyes go wide and he swallows hard. yeah.

I'm going long on "putina with the irregulars" and "leveraged bond fund" in the second half. garnish with a side of LTCM when the flash boys suddenly get caught way out on the 10-sigma.



Tue, 04/08/2014 - 19:45 | 4637466 netpounder
netpounder's picture

Goldman is investing and promoting IEX while shorting it through the backdoor.  I am sure they are working on a more sinister and profitable exchange like an unaudited online casino.

Tue, 04/08/2014 - 19:45 | 4637467 Sutton
Sutton's picture

Which explains why Vinny Viola is going to let the public have a piece of his action. 

Tue, 04/08/2014 - 19:47 | 4637469 ThisIsBob
ThisIsBob's picture

Rats leaving a sinking ship.

Tue, 04/08/2014 - 19:50 | 4637473 hobopants
hobopants's picture

Anybody thinking all this shit is coincidental is either retarded or not paying attention to what is going on. The timing on all this is far to apposite, they are for sure setting the stage for something, God knows what.

Tue, 04/08/2014 - 19:53 | 4637482 Unknown Poster
Tue, 04/08/2014 - 19:53 | 4637480 Dr. Engali
Dr. Engali's picture

"Unless there are some changes, there's going to be a massive crash, a flash crash times ten."

This has been my belief for some time. The market will never take a meaningful down turn, it will simply vaporize while we sleep.

Tue, 04/08/2014 - 20:01 | 4637507 Latitude25
Latitude25's picture

Yeah like when various exchanges declare self help and go offline.  They just won't open again.

Wed, 04/09/2014 - 02:02 | 4638350 Superdude
Superdude's picture

Possibly the offline moments are tests to see if there is any general reaction. Preparedness wins

Fri, 04/11/2014 - 13:12 | 4648016 MeelionDollerBogus
MeelionDollerBogus's picture

DOW 5 treeelyun dollerrs!

5 millisec later... DOW halt

1 year later... DOW still halted

Tue, 04/08/2014 - 20:03 | 4637510 NYPoke
NYPoke's picture

That would be Credit Cycle 101, or rather 401 maybe.  End of Easy Money.  It could take the 1929-1932 path or the 2007-2008 path.


Or, it could hit bottom in a matter of weeks.  All that is missing from the 20's is for the Fed to cut the Money Markets overnight, which they set themselves up to do last Fall.


Add in ECB QE, a kicker from the JCB and some crazy ass Russians.  S&P at 69 by the end of the year.


Ah, The Place You'll Go.

Fri, 04/11/2014 - 12:57 | 4647958 MeelionDollerBogus
MeelionDollerBogus's picture

Aaaaaaand it's gone!

Tue, 04/08/2014 - 19:56 | 4637493 Latitude25
Latitude25's picture

OK so this article is saying that Goldman is the good bank on the block now?  If so then step up and tell us the details of all market manipulation including gold and silver.  No I didn't think so.  Back to stacking.

Wed, 04/09/2014 - 11:01 | 4639246 mccvilb
mccvilb's picture

Is GS about to relinquish its role as a dealer in treasuries for the Fed? What was all that noise about buyers going direct?

Tue, 04/08/2014 - 19:58 | 4637498 disabledvet
disabledvet's picture

"these are not the recoveries you're looking for. move along."

"these are not the recoveries we're looking for. move along."

there are no more bailout bucks if we get a 2008 reprise. I still remain firmly of the belief that the threat is in the debt markets not equities...and there is no way Goldman et al would be doing this if they didn't see a threat to the basic market structure itself "impacting more vulnerable market structures."

"You can take decades to build a good reputation and lose it in a day." I think President Putin has really given everyone a high quality wake up call...that's hundreds of billions in investment banking revenue that goes kaput if he goes all in in Ukraine.

I don't think the USA can afford that right now.

Then again maybe a full throated intervention is what is really wanted here.

Never know about these things.

Tue, 04/08/2014 - 19:59 | 4637500 GOLD AND SILVER...


Tue, 04/08/2014 - 21:39 | 4637753 pigs-n-space
pigs-n-space's picture

Well said brother....

Tue, 04/08/2014 - 20:00 | 4637506 Bluntly Put
Bluntly Put's picture

Another thing that is certain: take a long, hard look at the market as you know it today, because in less than a year it will be history.

On the plus side we have MyRA.




Tue, 04/08/2014 - 20:05 | 4637519 Itch
Itch's picture

There's no bag holders left, that's what they are really pissed about.

Tue, 04/08/2014 - 21:00 | 4637639 newworldorder
newworldorder's picture

Well no. Pension funds, IRAs, Union funds are the bag holders. Problem is, they vote and you can only fu** them once, before the political knifes come out. Someone big has to be the bag holder. It certainly will not be old money in trust and foundations, nor will it be new money of the bankster elite. Lets see how this plays out.

Tue, 04/08/2014 - 22:43 | 4637966 El Vaquero
El Vaquero's picture

I thought that bankers couldn't fuck them because the government was about to fuck them.  MyRA BITCHEZ!

Thu, 04/10/2014 - 13:16 | 4643984 MeelionDollerBogus
MeelionDollerBogus's picture

This is financial gangbang bukkakke. All the fuckers are invited.

Wed, 04/09/2014 - 02:52 | 4638434 supermaxedout
supermaxedout's picture

So this is the final theft of the savings of the middleclass. Then the old order is finally restored. The few masters skyhigh while the debt slaves do perish in the dark. 

Thu, 04/10/2014 - 13:10 | 4643966 MeelionDollerBogus
MeelionDollerBogus's picture

Get Goldman into bitcoin:  bag-holders are at the ready!

Tue, 04/08/2014 - 20:06 | 4637523 f16hoser
f16hoser's picture

GS has already moved-on to the next big scam! HFT is old news. GS made their Billions and are packing-up shop and moving out. GS/JPM/Soros/Buffet/You know the List; have all shorted the market because they know the exact date/time of Wall Streets Collapse. We don't know so we continue to chase our tails as we end up a day late and a dollar short.

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