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SEC's Mary White Pays Lip Service To "Rigged" Market Structure Changes

Tyler Durden's picture




 

Committees, investigations, concerns... but no actions. The SEC's Mary White spoke about market micro-structure this morning but mereley asked a lot of questions - as opposed to answered any. Two things she did mention of note: increased transpraceny for dark pools and internalizers; and forcing more high-frequency traders (and prop shops) to register as broker-dealers (and thus come under closer regulatory scrutiny). However, by the time any of this becomes 'law', we suspect the lobbyists will have created loopholes the size of Draghi's ego for HFTs to walk through. As WSJ reports, the SEC's enforcement division is investigating whether some high-speed traders are using order types - commands exchanges provide that determine how traders' buy and sell orders will be handled - in ways that can give them an advantage over less-savvy investors. We apologize for not seeing this 'investigation' as a positive but we've been here before with every other regulator... vested interests remain strong.

 

As WSJ reports,

Securities and Exchange Commission Chairman Mary Jo White unveiled a sweeping set of initiatives Thursday to address mounting concerns about the impact of computer-driven trading on the stock market, including proposals that would extend oversight of high-frequency traders and dark pools.

The SEC Looks to Enhance Market Structure:

 

Finalize proposed Regulation SCI to put in place stricter requirements for the technology used by exchanges, alternative trading systems and others.

 

Develop a new rule for additional safeguards when liquidity is most vulnerable and the risk of price disruption caused by aggressive short-term trading strategies is highest.

 

Improve firms' management of the risks associated with the use of algorithms and the SEC's oversight of their use.

 

Examine whether the SEC's own rules, including elements of Regulation NMS, have contributed to excessive fragmentation across all types of trading venues.

 

Examine whether to further mitigate or eliminate potential sources of conflicts between brokers and customers.

 

Finalize terms for a pilot program to allow wider tick sizes for the stocks of smaller companies.

The proposed measures will help the market "operate openly, fairly and efficiently to benefit investors and promote capital formation," Ms. White said.

The new rules, if approved and implemented by the SEC, could force significant changes upon high-frequency traders, who now account for more than half of all stock-market volume, according to analysts.

 

Among the most significant proposals unveiled by Ms. White Thursday is a rule that would require high-frequency traders to register with regulators as broker dealers, pulling them further under regulatory scrutiny. High-frequency traders have largely avoided direct oversight since they are typically private outfits that trade on behalf of their owners.

 

Ms. White also directed SEC staff to develop a new anti-disruptive trading rule to prevent rapid-fire traders from engaging in short-term strategies that can aggravate market volatility.

 

The proposals will be developed by the SEC's staff in the coming months and will require a vote by the full commission, meaning it could be months—if not years—before they're fully implemented.

 

Many of the proposals are likely to trigger pushback from some high-speed firms and other market players. Defenders of high-speed trading say the firms help regular investors since the traders stand ready to buy and sell under most market conditions.

The ideas are good, but have been around forever - and we just don;t believe change will come any time soon. But there is this...

The SEC will also direct exchanges to conduct a comprehensive review of order types and to make rule changes to clarify how they interact, Ms. White said.

 

The SEC's enforcement division is investigating whether some high-speed traders are using order types—commands exchanges provide that determine how traders' buy and sell orders will be handled—in ways that can give them an advantage over less-savvy investors.

We just hope they employ independent consultants that are not HFT traders (or exchange employees) to do the analysis

 

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Thu, 06/05/2014 - 13:15 | 4827278 JRobby
JRobby's picture

Hey! They tried to put a scare into golf fans. That counts, doesn't it?

Thu, 06/05/2014 - 13:16 | 4827292 Newsboy
Newsboy's picture

"Don't rock the boat, baby. Don't tip the boat over!"

https://www.youtube.com/watch?v=FfBwsG8ubFw&feature=kp

Thu, 06/05/2014 - 13:30 | 4827334 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

"Lip Service" from Mary White has a strongly negative value.  I don´t know if I would accept that for a million bucks...

Thu, 06/05/2014 - 13:34 | 4827352 max2205
max2205's picture

Mary, at least go to the beauty parlor. ..God Damn it

Thu, 06/05/2014 - 13:46 | 4827374 Squid Viscous
Squid Viscous's picture

she doesn't look 100% "white" to me...maybe her mom had a quickie with the chinese delivery guy? ...but that haircut is awesome!

Thu, 06/05/2014 - 13:53 | 4827422 john39
john39's picture

what is it with the NWO and aesexual trogladites? must be undivided loyalty or something like it.

Thu, 06/05/2014 - 14:00 | 4827455 Harbanger
Harbanger's picture

Search the homosexual roots of the Nazi's and you'll make the connection.

Thu, 06/05/2014 - 14:01 | 4827458 RevRex
RevRex's picture

Lesbian

Thu, 06/05/2014 - 14:10 | 4827479 Headbanger
Headbanger's picture

Munchkin!

Thu, 06/05/2014 - 14:02 | 4827461 Son of Loki
Son of Loki's picture

Lets cut through the crap. How many criminals did she send to jail so far? In fact, how many criminals has the SEC indicted in the last 10 years??

Thu, 06/05/2014 - 14:22 | 4827518 JRobby
JRobby's picture

A few outsiders and wannabee's

Thu, 06/05/2014 - 13:34 | 4827360 pods
pods's picture

Just close your eyes and think of a far away place..............

(and don't let any 3 stooges skits enter your mind)

pods

Thu, 06/05/2014 - 14:43 | 4827574 Flagit
Flagit's picture

Who in the hell wants head from Moe?

Curly maybe, but not from Moe.

Thu, 06/05/2014 - 13:17 | 4827294 Canadian Dirtlump
Canadian Dirtlump's picture

Speaking of scary, much like Yellen I understand a bowl cut hairdo is supposed to be disarming. However. A Gorgon with a bowl cut should still be given a wide berth.= no manner what form of hairdon't it is packing. DOn't look it in the eye and don't listen to a fucking word it says either.

 

 

Thu, 06/05/2014 - 13:20 | 4827302 JRobby
JRobby's picture

"A Gorgon with a bowl cut should still be given a wide berth"

 

Good laugh, thanks

Thu, 06/05/2014 - 13:25 | 4827321 Winston Churchill
Winston Churchill's picture

One fugly man.

Oh wait....

Thu, 06/05/2014 - 13:34 | 4827354 Harbanger
Thu, 06/05/2014 - 13:37 | 4827370 DoChenRollingBearing
DoChenRollingBearing's picture

Look at that!   Little Mario has a husband!  Wow, the Internet really does get bigger every day!

Thu, 06/05/2014 - 14:04 | 4827468 Son of Loki
Son of Loki's picture

Living proof that the human Genome does, indeed, mutate and twist out of shape from time to time.

Thu, 06/05/2014 - 14:05 | 4827470 flacon
flacon's picture

"Lesbian.com" ~ LOL!  That's just too funny. They are so puny that they feel they need to register a DOMAIN name.  I've never met a woman who didn't claim that she was "I'm a STRONG WOMAN!" ;)

Thu, 06/05/2014 - 14:10 | 4827482 NidStyles
NidStyles's picture

For some reason I was expecting something else from that domain name...

Thu, 06/05/2014 - 14:45 | 4827581 Flagit
Flagit's picture

They have their own website?>

What next, a TV network?

Thu, 06/05/2014 - 13:28 | 4827331 drendebe10
drendebe10's picture

"There ain't nuthin uglier than an old white woman."   Redd Foxx as Fred Sanford, in Sanford and Son...

Thu, 06/05/2014 - 13:16 | 4827291 nosoeawe
nosoeawe's picture

I'm pretty sure mary white also played a munchin in the wizard of oz

Thu, 06/05/2014 - 13:17 | 4827297 Canadian Dirtlump
Canadian Dirtlump's picture

pre surgery she represented the lollipop guild.

Thu, 06/05/2014 - 13:38 | 4827369 max2205
max2205's picture

LOL. She just called you fuckers less savy.

 

Fuck you Mary!

Thu, 06/05/2014 - 13:42 | 4827381 Manthong
Manthong's picture

for some reason I can't seem to get flying monkeys out of my mind right now.

Thu, 06/05/2014 - 13:17 | 4827295 order66
order66's picture

Long Virtu.

Thu, 06/05/2014 - 13:17 | 4827296 orangegeek
orangegeek's picture

These women that look like dudes make my eyes hurt.

 

They should all be named Pat.

Thu, 06/05/2014 - 13:33 | 4827350 cougar_w
cougar_w's picture

Tyler should perform a public service and always insert this link at the top of any of these posts:

http://www.eyebleach.com/

/NSFW

Thu, 06/05/2014 - 13:20 | 4827301 Colonel Klink
Colonel Klink's picture

Mary White, you mean the lying sack of shit that nothing is rigged?  That Mary White?

Thu, 06/05/2014 - 13:20 | 4827303 Bill of Rights
Bill of Rights's picture

Little update to the " Discrepancy " in the Healthcare signups....this is epic.

 

The final number affected could well be higher. According to the administration the 2 million figure reflects only consumers who signed up through the federally administered HealthCare.gov website and call centers.

The government signed up about 5.4 million people, while state-run websites signed up another 2.6 million.

 

APNewsBreak: Data discrepancies in health sign-ups

 

You do the math

 

Oh and on those "discrepancies "

 

$250,000 Fine for Lying on Obamacare Application

 

Prepare the gulags

Thu, 06/05/2014 - 13:22 | 4827311 Colonel Klink
Colonel Klink's picture

They'll pursue the law against all the violators since no one on Fraud street or Washington, District of Crime uses the exchanges.  Laws for thee, none for me (aforementioned).

Thu, 06/05/2014 - 13:31 | 4827341 LawsofPhysics
LawsofPhysics's picture

yes, yes, "rules" and "laws" are for the "little people".  (guillotines are for the 1%)

Thu, 06/05/2014 - 13:36 | 4827367 cougar_w
cougar_w's picture

Seems fair to me. I may have to just build one of those to start the trend. Put it in the back of my pickup and drive around City Hall with it.

You think they'll get the message? No? Yeah I figured that would be the case.

Thu, 06/05/2014 - 13:28 | 4827329 disabledvet
disabledvet's picture

"First Look" at the information you're trading on please.

Alternative: "more planes get exploded and disappeared."

Thu, 06/05/2014 - 13:31 | 4827342 junction
junction's picture

Securities and Exchange Commission Chairman Mary Jo White, another "money for nothing" regulator who is collecting a government salary now before she moves on to a partner job at a hedge fund.

Thu, 06/05/2014 - 13:53 | 4827346 Mercury
Mercury's picture

Finalize proposed Regulation SCI to put in place stricter requirements for the technology used by exchanges, alternative trading systems and others. Develop a new rule for additional safeguards when liquidity is most vulnerable and the risk of price disruption caused by aggressive short-term trading strategies is highest. Improve firms' management of the risks associated with the use of algorithms and the SEC's oversight of their use. Examine whether the SEC's own rules, including elements of Regulation NMS, have contributed to excessive fragmentation across all types of trading venues...


                        rtyuio
                              sdfghjkl
                              xcvbnm

(Sorry, I lost consiousness and my head hit the keyboard)

 

Good grief you crony-zombie, canker-blossom, this isn't that fucking hard:

National batch crosses every second or so.  Orders are prioritized by price but randomized by time stamp (can't get around the speed of light problem).  Next cross.  

 Reg NMS compliance is forced by the mechanics of the market.  Minimum tick sizes and some small fee for posting quotes and/or cancelling orders so as to make egregious HFT cost prohibitive.

Buying and selling interest is once again aggregated and transparent price discovery and liquidity ensue.

 

Now stick your thorough-investigating, blue ribbon panel up your ass and give us our market back.

 

Thu, 06/05/2014 - 13:33 | 4827351 Chippewa Partners
Chippewa Partners's picture

Am guessing Flash Boys was fiction to the SEC.

Thu, 06/05/2014 - 13:36 | 4827353 madcows
madcows's picture

 

Linda Hunt runs the SEC?

Thu, 06/05/2014 - 13:34 | 4827355 Mark it Zero
Mark it Zero's picture

I could at least be taken in by the bullshit if some of these ladies were at least hot.  Where did they find this one?  

 

Thu, 06/05/2014 - 13:51 | 4827417 Comte d'herblay
Comte d'herblay's picture

C

Thu, 06/05/2014 - 13:34 | 4827359 richiebaby
richiebaby's picture

Is it just me or does Mary White bear a striking resembalace to Moe Howard?

Thu, 06/05/2014 - 13:51 | 4827415 Comte d'herblay
Comte d'herblay's picture

Not just resemblance, A clone, actually.

Thu, 06/05/2014 - 13:36 | 4827366 overmedicatedun...
overmedicatedundersexed's picture

add one more to the "dead pool". chris cox is laughing his ass off.

Thu, 06/05/2014 - 13:52 | 4827412 Comte d'herblay
Comte d'herblay's picture

Chris Cox was the one responsible for all the bullshit at the SEC during the 200 2008 crisis and laid the groundwork for massive frauds. e.g. Bernie Madoff.

If I saw him in a blind alley and no one was around, I'd assassinate him.

Thu, 06/05/2014 - 13:48 | 4827404 Comte d'herblay
Comte d'herblay's picture

If you put her genes together with J Yell's, and then added Ellen Degenerate's, and Hilary's you still wouldn't come up with one tenth of a human bean from the distaff side of the equation.

Point o' Odor!!!  I want these hermaphrodites to undergo a Gender Test.  

If she changed her name to Mark White b 4 I saw this, I would never have suspected that it was a woman. 

Christ I hope these things have no reproductive organs that function.

 

Thu, 06/05/2014 - 13:58 | 4827444 orangedrinkandchips
orangedrinkandchips's picture

bitch has a dick! swear!

 

and a liar to boot!

Thu, 06/05/2014 - 14:04 | 4827467 Itchy and Scratchy
Itchy and Scratchy's picture

Curly was definately funnier than Moe!

Thu, 06/05/2014 - 14:14 | 4827496 silverserfer
silverserfer's picture

Mary "i suck yo dick" White gonna take call of all this shit! The mittens are comming off! Look out rats!

Thu, 06/05/2014 - 14:19 | 4827508 NoTTD
NoTTD's picture

I enjoyed her performance in High Plains Drifter.

Thu, 06/05/2014 - 14:26 | 4827527 kchrisc
kchrisc's picture

Holy crap!

While investigating if Ms. White is from Ashkenazi I found this:

http://www.tomatobubble.com/id199.html

Something is rotten, and it isn't in Denmark.

Thu, 06/05/2014 - 14:35 | 4827554 lindaamick
lindaamick's picture

Just one more crook.

Thu, 06/05/2014 - 14:41 | 4827566 Lmo Mutton
Lmo Mutton's picture

Why do White, Yellen, Billary, and Janet all look like the same guy?

Is that Mike Meyers playing their part or something?

Thu, 06/05/2014 - 16:46 | 4828006 venturen
venturen's picture

in other news Mary Jo just got a Goldman directorship for life stipend! 

Thu, 06/05/2014 - 18:03 | 4828200 The Econ Ideal
The Econ Ideal's picture

Existing broker dealers share the greatest culpability for the rigged markets. They sell client order flow, and front run their own clients. This has nothing to do with HFT, and as far as one can tell, it will continue unabated. The solution is not to do business with these BDs. Add to this the fact that the markets are a Ponzi scheme, clear and simple, with a perpetual tail risk for panic selling and manic buying, and it turns WS interest on MS to nil (or should). Valuations need to matter. 

Thu, 06/05/2014 - 18:51 | 4828351 Chuck Knoblauch
Chuck Knoblauch's picture

d

Thu, 06/05/2014 - 18:51 | 4828352 Chuck Knoblauch
Chuck Knoblauch's picture

Mary Joe, the Czar of trading insider information for the SEC pension fund.

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