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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 - 20:11 | 4637537 apberusdisvet
apberusdisvet's picture

This could be the rats leaving before the storm.  There's a lot a chatter about a major false flag this summer; so we may have a few months to exit the banks, and go to cash and PMs.

Tue, 04/08/2014 - 20:14 | 4637542 Joenobody12
Joenobody12's picture

The coming fourth shocker - Fire broke out at Goldman Sucks headquarter, destroying all record of HFT and dark pool trading . 

Tue, 04/08/2014 - 21:37 | 4637748 Troll Magnet
Troll Magnet's picture

And then the building will collapse due to heat.

Tue, 04/08/2014 - 20:15 | 4637544 foxmuldar
foxmuldar's picture

Could it be the fear of Eric Holders injustice department threat to look into HFT, that has GS running for cover.  Holder is willing to do most anything to take the voters attention off Obamacare so if he can bring down the fat cats of Wall street and say their all rich Republicans.  Since GS has a lot of insiders in congress, GS had to be tipped off to know whats coming down the pike. Obama would look  good to the folks if he could say he cleaned up the corruption on Wallstreet. Afterall isn't Wall street those evil rich folks that Obama keeps bashing? 

Tue, 04/08/2014 - 20:55 | 4637625 Quinvarius
Quinvarius's picture

There is no fear of Eric Holder ever doing his job.  EVER.

Thu, 04/10/2014 - 12:52 | 4643882 MeelionDollerBogus
MeelionDollerBogus's picture

not doing his job is his job.

Tue, 04/08/2014 - 21:05 | 4637654 buzzsaw99
buzzsaw99's picture

thanx 4 the laugh. the squid owns the sec, doj, fbi, etc..

Wed, 04/09/2014 - 19:22 | 4641221 MeelionDollerBogus
MeelionDollerBogus's picture

Don't be absurd. If anything they've probably rigged other HFT's to crash and then make it look like someone divulged code from Goldman to do it, although it actually will be a code injection, THEN Goldman can sue them for losses and win PLUS be on the right side of a bunch of trades.
Silly Rabbit, Trix are for kids.

Tue, 04/08/2014 - 20:16 | 4637546 EggSlayer
EggSlayer'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."

 

Bold statement there, Tyler.

Tue, 04/08/2014 - 21:06 | 4637662 buzzsaw99
buzzsaw99's picture

+1 - the market has a higher probability of going to infinity than it does of crashing

Tue, 04/08/2014 - 21:50 | 4637792 EggSlayer
EggSlayer's picture

As I'm here reading this "Flash Boys" book which is all the hype these days, which is actually quite a good read... I am thinking: could it be possible for HFT firms to front run in short sales the same way they do for long? If so, could they short sell the market to 0 in kind of a feedback loop between different exchanges and different HFT firms? Or is this just nonsense...

Tue, 04/08/2014 - 22:03 | 4637831 Ness.
Ness.'s picture

Bidless has always been my end-all scenario.  I figure the HFT machinista's will crash this market trying to fist fuck each other while pinging for the next/closest bid.  Only to realize they are the only bid/offer around.  Whoops!  The liquidity trap that allowed this "market" to get so overbought will be the tinder to bring this fucker down.  My guess is it'll happen on Sunday night while the US is sleeping off a weekend hang-over, only to wake up and realize they just got Corzined.

 

Kill Jon Corzine.  please...?

Tue, 04/08/2014 - 22:52 | 4637990 booboo
booboo's picture

That is kinda my thinking on this, the bit players with big money vested in HFT can't afford to just shut it down and they will be the ones that cause this express elevator down or go bidless. Right now you see the deep pockets slowly inching for the exit door. Someone is going to bump a chair on the way out and cause everyone to look up and see the big swinging dicks piled up and the fire exit and the shit will hit the fan and forget those double/triple leveraged short ETF's, you are not going to collect shit on them in a crash, sorry, counter party risk and all, when the chain breaks you are SOL. 

Wed, 04/09/2014 - 19:25 | 4641227 MeelionDollerBogus
MeelionDollerBogus's picture

Entirely possible but I wouldn't say likely. I'm in HVU regardless but not for much. if I lose it, I'm fine. If I collect the gains, good for me.
It's far, far from my primary investment.

Wed, 04/09/2014 - 19:27 | 4641233 MeelionDollerBogus
MeelionDollerBogus's picture

Of course they can, and have, and then it's up to NASDAQ, NYSE, etc., to reverse trades of choice, the magical no-appeal undo-button, to seal the deal. Some profit from trade, some retain profit from reversal of losses, and everyone else is wiped out.

Tue, 04/08/2014 - 20:17 | 4637549 IridiumRebel
IridiumRebel's picture

First rule of Sigma X is there is no Sigma X.

Tue, 04/08/2014 - 20:21 | 4637562 vincent
vincent's picture

The preeminent frontrunners getting frontrun. How ironic.

 

Tue, 04/08/2014 - 20:22 | 4637564 Oreilly
Oreilly's picture

If HFT is constrained, so much for market volume (isn't it estimated to make up over 70% on most days?).  What will be the effect on exchanges that have been dependent on HFT to keep their volume high (such as NYSE)?  At the very least volume will take a massive hit, and with decreased volume comes another very visible reminder at how rigged things have been for the past 5 years.  Just the perception that a market has dropped 20% in volume will cause investors/schemers to run for the door.  I've no idea why GS is turning their back on their DP, but I've a sneaking suspicion that without HFT it's going to be much harder to ramp markets at the Feds beckoning.  And without the ability to ramp (increasing the wealth for all ... Hooray!!), the market in general is going to dump.  DP or open market, when the dump starts who wants to be the last person dancing with shares in their hands when the musical chairs are swept away?  Obviously not GS. 

 

It is very concerning, to say the least.

Tue, 04/08/2014 - 22:58 | 4638021 Tinky
Tinky's picture

By "concerning", I presume that you mean "welcomed".

Tue, 04/08/2014 - 20:44 | 4637595 Rising Sun
Rising Sun's picture

After these markets crash in the next year or two, GS and JPM won't matter anymore more - it doesn't matter how fucking smart these cocksuckers think they are.

 

Trading tools and trading platforms cost little for individual investors.  HFT is just front running orders.  Trading trend is alive and well.

 

Bullshit trading courses for $20K are finished - you can get this shit for free online now.

 

Markets still go up, down or sideways and traders will continue to trade.  And those big fat fucking institutions that game the system are going on a diet very soon.

Tue, 04/08/2014 - 20:46 | 4637605 cheetahbaby
cheetahbaby's picture

And gold goes to 5,000 per oz.....

Wed, 04/09/2014 - 05:22 | 4638528 Bernoulli
Bernoulli's picture

Depending on what the USD is worth....

But I am pretty sure that this nice one kilo-bar of Gold you can use to "buy" a new Audi A5 today, will soon buy you a nice house with garden at a good location not so long in the future.

But should we really be looking forward to these times? I'm pretty sure they will come, but it's a bit scary...

Tue, 04/08/2014 - 20:48 | 4637610 Signs of the end
Signs of the end's picture

Or maybe HFT is oh so 2010 and the big boys already have the next 'investment' lined up to make billions - FOR THEM not for you! All these so-called changes are either window dressing or a prelude to a bigger and better trade, for their benefit of course at the expense of the dumb sheeple! I doubt Goldman's found religion, more gold somwhere maybe, but leaving all that money on the table! Not a chance!

Tue, 04/08/2014 - 21:29 | 4637722 Midnight Rider
Midnight Rider's picture

If Goldman's found something more sinister than HFTs and dark pools to go to, the market's really in for it. In light of the current visibility and crackdowns in process, I would hope they realize they're going to have to start making money the old Smith Barney way - earn it.

Tue, 04/08/2014 - 20:50 | 4637613 buzzsaw99
buzzsaw99's picture

don't let the door hit you in the ass on your way out squidly

Tue, 04/08/2014 - 20:50 | 4637614 seek
seek's picture

Volatility management.

They know the inevitable crash is coming, and with HFT it will happen in the span of hours if not minutes. In other words, it's so bad they're having to manipulate the manipulations.

HFT needs to go away, but I'm convinced that because it is, it's bad news -- either it's going to be replaced by something worse, or it's game over and the big reset is coming.

Tue, 04/08/2014 - 21:20 | 4637697 UselessEater
UselessEater's picture

They just need bail-in legislation globally, IMF veto change, finalisation of new global taxation scheme, etc all due this year, to ensure maximum ability to steal every penny from the average soul during the reset process. Also if Russia keeps playing chess calmly the reset can unfold in the desired fashion and cold war 2.0 tensions can be used as propoganda to distract the masses and justify a future world war, so plan accordingly.

Tue, 04/08/2014 - 21:58 | 4637826 seek
seek's picture

Bail-in is already a done deal in both Europe and the US, so I doubt it matters anywhere else.

Safe to say we're not long from the reset. My bet is under 5 years now, probably in 3 years (2017.)

 

Wed, 04/09/2014 - 00:29 | 4638228 UselessEater
UselessEater's picture

 

OK we're still signing the bail-in deal in Aust, it surprises me that we're the last.

We boast signing communist BS 1st all the time -we scratch gravel and sign fkg treaties, awesome!

We've got the IMF veto drama this week.

Perhaps there is another 2-3 year roll out but the reset certainly has already started.

Wed, 04/09/2014 - 01:02 | 4638271 Tall Tom
Tall Tom's picture

What an optimist. I think that by September things will be cookin'.

Tue, 04/08/2014 - 20:54 | 4637622 Quinvarius
Quinvarius's picture

Notice Goldman talks about Revenue from the operation and not profit. 

Tue, 04/08/2014 - 21:06 | 4637629 Ignorance is bliss
Ignorance is bliss's picture

Why have an exchange in bolivars? Dollar revaluation is probably on the horizon. There is a G20 meeting coming April 10th. Maybe there is a correlation.

Tue, 04/08/2014 - 21:07 | 4637666 JackT
JackT's picture

Whatever it is. It certainly not going to be good. Hell shall be about shortly

Tue, 04/08/2014 - 21:14 | 4637678 db51
db51's picture

W T F Folks.  This whole fucking ordeal stinks to high heaven.  Goldman going Mother Theresa on us....something big is afoot alright.  Goldman and Company is about to do a major ass reaming on every mother fucker who isn't under their umbrella of protection from all criminal prosecution.     The real pary is about to get started.....they'll be toasting in the Hamptons and laughing their asses off for sure after this is over.   Grab a Corona and some Popcorn.   Here we go.   Goldman Sachs, Masters of the Universe, the sequel....or sequel to the sequal...whatever the fuck you want to call it.   We're all screwed.

Tue, 04/08/2014 - 21:49 | 4637789 Spumoni
Spumoni's picture

We're only screwed if we're leveraged. The whole thing to me - a simpleton no doubt - is like people worrying about being hacked, having their info stolen, etc. Well, not even Anonymous can hack my ring-binder notebook or my journals. Worried about a crash? Buy index puts. Worried about apocalypse? Buy food and bullets and seed, and gold of course. Beef up your car, or buy a horse. To paraphrase an old warrior (Musashi), "If you present no target to your enemy, he cannot strike you." 

You know, really? Fuck Wall Street, London, Washingtomb and the rest of the  'power centers.' Lao Tse said, many moons ago, that if you pile up riches for yourself, all you will attract are flatterers and thieves. A wise ruler raises everyone as he gains power, and thereby builds a base like a broad mountain - uassailable and which allows you to see your enemy coming from a long way off. The great titans of this age got it wrong again - the poor always come for blood. It should have been clear from the reaction of the rich to the latest economic collapse that some re-examination of our decision matrix was needed. Instead we got a circus of political bullshittery and more thieving.

It is a shame and all, but Holder's limp dick doesn't make a bit of difference to history - except that when he and this crowd of 'leaders' are remembered, it will be as buffoons and psychopaths who completely missed one of the greatest opportunities in the world's history, along with their mandate. The people who are remembered will be the ones who finally tear this structure to the ground, and those who remake it. I just hope we find people with enough courage and intelligence to figure out how.

Wed, 04/09/2014 - 01:10 | 4638281 freedogger
freedogger's picture

Good comment.I haven't heard those ideas before on wealth but they make good sense.

Tue, 04/08/2014 - 21:54 | 4637802 Crawdaddy
Crawdaddy's picture

Who owns GS? Who has controlling interest? I'll give you a hint: they all bow to this guy: http://www.vatican.va/

Look it up if you doubt it.

Tue, 04/08/2014 - 22:19 | 4637890 espirit
espirit's picture

+1 Crawdaddy, I'll upvote you cause I agree.

There can be only one.

Tue, 04/08/2014 - 23:05 | 4638048 Lord Koos
Lord Koos's picture

Well, that's refreshing -- so it's not the Jews' fault anymore?

Wed, 04/09/2014 - 02:01 | 4638347 weburke
weburke's picture

pope francis? benedict was the seventh king, try to grok that. look getting dressed for eat and greet is the full time job.

Tue, 04/08/2014 - 21:49 | 4637787 Papasmurf
Papasmurf's picture

The Fukuover1000hft is obsolete and the screwUagain2000UHFT is nearing completion.

Tue, 04/08/2014 - 22:04 | 4637852 Aussiekiwi
Aussiekiwi's picture

If this article is true, this is HUGE!

Tue, 04/08/2014 - 22:12 | 4637872 Carpenter1
Carpenter1's picture

Without corruption, there is no market.

 

LOOK OUT BELOW!!!

Tue, 04/08/2014 - 22:20 | 4637896 economessed
economessed's picture

So Goldman, we know you guys read this stuff - why don't you do us a favor and tip Tyler about what's happening so this site gets the credit it has quietly and unpretentiously deserved since being founded?

Start typing.  You will feel better about yourself, and you'll save a lot of innocent people the anguish and suffering of whatever impact they may be facing.

Tue, 04/08/2014 - 22:37 | 4637947 db51
db51's picture

You're fucking kidding, right?  Ain't no Goldman types reading this shit....and they'd be doubled up from laughing so hard they'd never be able to make a post.

Wed, 04/09/2014 - 01:14 | 4638276 Tall Tom
Tall Tom's picture

He who laughs last laughs best.

 

Now just how easy is it to shoot down Gulfstreams during departures at the regional airports???

 

I know. Just target the Turbofan Engines as they are programmed to shut down as a result of Bird Strikes. It takes a 26 Joule Kinetic Energy impact to set that off.

 

And you thought that the Banksters fly commercial so they can have their families molested by the TSA? LMAO.

 

I am laughing at watching that prospect develop...and watching the FAA ground all flights.

 

Then you will see the Killing Fields as they are trapped. Get out early or forget about it.

Tue, 04/08/2014 - 22:26 | 4637907 AdvancingTime
AdvancingTime's picture

The market will crash when it is to the advantage of the big boys for it to happen. To say the market is rigged is an understatement. After over 30 years of trading commodities I will flat out state without any reservations that lies and manipulation run rampant. If you think anyone is looking out for the small independent trader you are wrong.

An unholy alliance of the Federal Reserve, the government, and the too big to fail has left the rest of us in a precarious position. For the big boys, its insider information and computer trading, this includes computing patterns that exploit where stops are placed, this improves their ability to wash the weak out of their positions.More onthis subject in the article below.

http://brucewilds.blogspot.com/2013/07/markets-more-lies-and-munipulatio...

Tue, 04/08/2014 - 22:45 | 4637973 Thought Processor
Thought Processor's picture

 

 

Rigged without a doubt.  I would maybe take it one step further and say that the 'Rigged Markets' are being managed.

In other words-  there is a larger plan in play that is currently unfolding.

Tue, 04/08/2014 - 22:55 | 4637999 gdpetti
gdpetti's picture

Exactly, and the next move is usually to 'pull the rug out', frontrunning Mother Nature's 'spring cleaning' and whatnot. Once you create a den of thieves to keep the herd under your spell, you fleece them annually until it's time for the slaughterhouse, a place where no rug will be needed, nor desired once the blood starts to flow... so pull it out and send the sheep on their way. The problem for these 'masters of the universe' is that they too are under the spell and think they are masters of their domain, when in fact they are just sheep dogs and when the sheep are gone, so goes their role in this game... as the real masters proceed to cut their strings and send them on their way with the rest of the herd.

Wed, 04/09/2014 - 18:47 | 4641134 MeelionDollerBogus
MeelionDollerBogus's picture

"If you think anyone is looking out for the small independent trader you are wrong."

Of course they're looking out for you's, like the helpful wolf keeping the sheep herd from over-populatin'. Its fer yer own good, of course.

Tue, 04/08/2014 - 22:58 | 4638013 Calling Elvis
Calling Elvis's picture

Ranger4564    ...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!

Here Here  Sounds like we may have some REAL movement - I only say that from reading what most have said - but I do agree skewering the bankers and the oligarchs is way past due whether this is for real or not.


Wed, 04/09/2014 - 22:19 | 4641831 MeelionDollerBogus
MeelionDollerBogus's picture

Here's a clever idea.

A roomba. Sort of.

Roams around, finds pathways & finds a good place to park itself. Except on top it doesn't look like a Roomba.

A few space-monkies hired (inflatrating) and setting these up in a few choice Bankster Mafia offices...

Tue, 04/08/2014 - 23:04 | 4638044 ReligiousAtheist1
ReligiousAtheist1's picture

Its all coming to an end folks

Wed, 04/09/2014 - 18:37 | 4641107 MeelionDollerBogus
Tue, 04/08/2014 - 23:08 | 4638063 Tegrat
Tegrat's picture

GS is a beacon of light, truth and morality who shows humility in time of need. Clearly GS shows there's no need for regulation as banks are self regulating and self policing.

 

 

/sarc

 

Wed, 04/09/2014 - 02:06 | 4638353 El Vaquero
El Vaquero's picture

No regulation works a lot better when failure is an option.  But there is a ton of regulation.  It squeezes small upstarts out.  The big guys either can afford to follow them, or to ignore them. 

 

Welcome to crony capitalist USA. 

Wed, 04/09/2014 - 17:57 | 4640991 MeelionDollerBogus
MeelionDollerBogus's picture

There's no such thing as crony-capitalism. It's called FASCISM.
Merger of CORPORATION & STATE.
You Murrikin kids1 just keep getting taught that everything bad is socialism & communism, while getting those mixed up between each other too. Of course your schools won't teach you what Fascism is, then you'd know you're IN IT, not a democracy nor using free markets.
What is Fascism - John T Flynn - Von Mises - youtube
http://youtu.be/4Ml7-aDXrgQ

1'you' as in "y'all", I realize you in particular are probably not a kid from reading of your other posts.

Tue, 04/08/2014 - 23:12 | 4638073 yogibear
yogibear's picture

What better way for China and Russia to take down American economy than to have several HFTs purposely crash the stock markets.

Whip-saw the market up draw people in and then take it down.

 

Wed, 04/09/2014 - 00:37 | 4638238 kurt
kurt's picture

But first take a public position AGAINST HFT like Goldman does. Thus, after the crash, they'll be alive, on the "people's" side. Other firms will be tossed out of skyscrapers. Then, quietly, in the dark, re-insert your blood funnels and tighten your tentacles. Pop off a few heads and suck out the guts.

I asked an old Navajo man why his little fingernail was longer than the rest. He proceeded to demonstrate how to eat a small bird, guts and all.

Goodnight little birds.

Wed, 04/09/2014 - 17:52 | 4640984 MeelionDollerBogus
MeelionDollerBogus's picture

LOL

Tue, 04/08/2014 - 23:14 | 4638077 ChargingHandle
ChargingHandle's picture

If true,  there have been long conversations in a smoky rooms and you can bet the Federal Reserve is complicity guiding it. How fast can 2000 points go poof... Minutes.... Hours? 

Wed, 04/09/2014 - 17:47 | 4640974 MeelionDollerBogus
MeelionDollerBogus's picture

Maybe it'll come under more responsible management.
Hint: "That's why I'm richer than you are!"

Tue, 04/08/2014 - 23:36 | 4638126 Haager
Haager's picture

Is this SHTF - oh damn, I just said it which makes the black swan a no-go.

Or is it just that GS knows of some sort of regulation coming which will make their current scam worthless - or needless?

Tue, 04/08/2014 - 23:50 | 4638147 db51
db51's picture

Mars aligns with Earth and Sun.....4 blood moons and a Total Eclipse coming to a City Near You.....It's all coming together.....in the interim, Goldman Sachs aligning with Uranus.  Bend over and brace for impact.

Wed, 04/09/2014 - 00:06 | 4638183 IridiumRebel
IridiumRebel's picture

I'm so jaded at this point I just try to Neptune it all out.

Wed, 04/09/2014 - 00:02 | 4638177 ToNYC
ToNYC'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."

Sounds like you've not been to Ground Zeros a few times already' and seen the exploding plastic inevitable accelerated, but not yet in everyone's face at once. A year ago or fro, you'd have equally no idea, but you'd  think you do,

Wed, 04/09/2014 - 00:10 | 4638192 ThroxxOfVron
ThroxxOfVron's picture

"No decision is imminent, and Goldman could keep the business..."

What, were you People born yesterday; some heinous new criminal scheme is already well underway.  These crooks have been crooks for so long that they don't know how to make a living without conniving and grifting.  IF the dark pool is closed it will only be because they will have created an all consuming new black hole for/of other peoples money to feed in.

 

Wed, 04/09/2014 - 00:16 | 4638200 One of We
One of We's picture

Bread and circuses aren't enough when the poor want blood.  The roman Senate can sense the growing angst of the masses and see the writing on the wall.  It's time for a few token banksters to be tossed into the coliseum and you know it won't be anyone from GS.  There might be some regulation coming to standardize the round trip time from trader terminal to exchange and I'm sure the unwind will be messy once the algos can't find anything to front run.  Better to get out before the bloodshed.....

Wed, 04/09/2014 - 14:18 | 4640061 MeelionDollerBogus
MeelionDollerBogus's picture

Roman senators sent slaves into the gladiator ring to kill each other and for a long time this satisfied the masses with no blood spilled of the elites.

Wed, 04/09/2014 - 14:27 | 4640103 Miffed Microbio...
Miffed Microbiologist's picture

Well Caesar Augustus was probably murdered. Caligula was stabbed to death by the praetorian guard. Claudius was probably poisoned and Nero didn't live to a ripe old age either and had his secretary kill him because he couldn't do it himself. Not to mention all the family members they killed or made to suicide. Them was the days.

Miffed ;-)

Wed, 04/09/2014 - 14:49 | 4640193 MeelionDollerBogus
MeelionDollerBogus's picture

indeed :)

Wed, 04/09/2014 - 00:56 | 4638261 nostromo17
nostromo17's picture

Goldman moving from HFT to IEX. Well, isn't it just that the HFTs and Investment Banks decided that they were just cannibalizing each other and there was more money to be made running the fashionable 'peoples' exchange where they can soak fees out of the masses like they are supposed to?

Wed, 04/09/2014 - 00:58 | 4638264 nostromo17
nostromo17's picture

The unintended consequence of critique is self discovery.

Wed, 04/09/2014 - 01:03 | 4638272 TheObsoleteMan
TheObsoleteMan's picture

The timing of all of this was pre-determined awhile ago. Everything from the 60 minutes spot, to the threats of investigations are just theater to distract the public. Goldman has in large part already left the building, you know, that one that is on fire? They know WW3 is on, coming sooner than most expect. Take your pick: 1. Israel attacks Iran, 2. NATO goes into the western Ukraine, 3. China attacks Japan, 4. China attacks Taiwan, 5. US attacks Syria, 6. US attacks Iran, 7. North Korea attacks South Korea, 8. North Korea attacks Japan. Or maybe India and Pakistan go at it. There have never been so many "hot spots" in the world that could/would start a WW3. In regards to Goldman and it's dark pools, here is a scene that about sums it all up:

http://youtu.be/SjbPi00k_ME

Wed, 04/09/2014 - 02:40 | 4638415 supermaxedout
supermaxedout's picture

Dont worry. War yes, but not WWIII. It would be the end also for Goldsack and his vasalls. The goldsacks want to rule the world but this is meaningless when mankind is erradicated. So there is a chance for the individual too to survive the coming crisis.

If they wanted to have the last war, they could have had it already many times. But history shows, they are shunning away from it for good reasons.  However, accidently it can happen always. But not just since now, this was the case since the early 1950s.

Wed, 04/09/2014 - 05:56 | 4638459 TheObsoleteMan
TheObsoleteMan's picture

Ever heard of the "Sampson Strategy"? If you don't get your way, you bring the whole house down, and everybody with it. War is started by mad men, and we have them in abundance, everywhere you look. Some one always over reaches, miscalculates, and it is on. It might be their way of inducing a re-set of their choosing. They know their weakening by the day. At the present rate, all they need do, is to do nothing, and the BRICS nations will overtake them. To their way of thinking, it is their last chance.

Wed, 04/09/2014 - 13:15 | 4639816 MeelionDollerBogus
MeelionDollerBogus's picture

Militaries work for oligarch governments / fascist cor-pir-ate mergers to government. Those governments work for the banks.

Sometimes an employee doesn't do what they're told or loses it.

The big banks front the money and give the orders but the militaries  have the nukes, bio-weapons, missiles, etc. If any of them lose it they'll screw everyone.

Even Goldman himself, once an ally of Hitler, almost got killed for that alliance once it became clear that money wasn't enough to make Hitler friendly - Goldman being a Jew.

Wed, 04/09/2014 - 02:06 | 4638352 q99x2
q99x2's picture

Maybe Obama's threat of a NYC nuke is supposed to happen and the DHS will be unleashed to go in for the kill. Doesn't Goldman control Washington?

I think it is to remove complex issues from the FED market software .

Wed, 04/09/2014 - 02:08 | 4638357 steveo77
steveo77's picture

Prosecute these fucks!

Wed, 04/09/2014 - 02:17 | 4638373 Dead Canary
Dead Canary's picture

Does anybody else smell gas? I could swear I sme...............

Wed, 04/09/2014 - 02:54 | 4638436 Catullus
Catullus's picture

Out because of the potential for regulators and lawsuits? I doubt it. That assumes these are regulators aren't dickless empty suits putting their time in to either collect pension or get a job on wall street.

This is not going to be a shocker, but GS is gong private. And not for regulation, but the public reporting aspect. I bet anyone who's been around for 20 years thinks it was a mistake to go public. The stock is up 50% in 13 years? How is anyone extracting any value from this who's got skin in the game? They let too many non-elites in. And not only that but a bonus in this country and the UK seems to be an affront to the non-productive classes.

As for why to get out of these ops. My guess is that they've always viewed HFT as low risk market scalping. It's probably much lower margin than it seems. It's a bitch game. Bots trading with bots. Dark pools? There's only so much muppet fucking you can't stomach before she starts looking like Miss Piggy. (I would not be surprised if a pension fund or two went for a Hail Mary and tried to sue GS for survival).

Betting big and laying low. Kick out those that don't belong. Lay off some partners. Restart lean I-banking.

Wed, 04/09/2014 - 04:12 | 4638489 resurger
resurger's picture

In reply to Michael Lewis HFT, they will make sure that the S&P will hit 2,000.

Wed, 04/09/2014 - 04:19 | 4638495 Bernoulli
Bernoulli's picture

Does anybody have an idea what is going on with Coatue Management?

http://www.cnbc.com/id/101564158

Wed, 04/09/2014 - 09:19 | 4638867 Cthonic
Cthonic's picture

  "During the month, Coatue's long positions moved five- to 10-times more than the broader market, he wrote. 'Coatue lost money on both sides of the portfolio: long and short,' he wrote."

translation: leveraging long NFLX, TWTR, FB, leveraging short NRG

Wed, 04/09/2014 - 09:48 | 4638942 Last of the Mid...
Last of the Middle Class's picture

looks like huge greasy rats with big teeth leaving the ship to me

Thu, 04/10/2014 - 22:53 | 4646145 whidbey-2
whidbey-2's picture

Diversion to first cover tracks and second create a new front to wage a new campaign in the market.  It probably has to do with bonds, the largest market, but also vital to political stunts. Why is " Porta Ricko" of such interest?  A new gimick to keep cities and states off the rocks, so slice them and dice them, repackage and sell income. We know CDS, and packaging tricks from 2005-6.  Have mercy with Goldman moving this fast things are worse than we thought.

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