Former SEC Director Admits The Truth: The Market Is Rigged

Tyler Durden's picture

For more than a decade, John Ramsay kept his mouth shut about how rigged the US equity market was.

 

As SEC Director of Trading & Markets, Ramsay tells Bloomberg her "had red tape over his mouth," but now he is "uncorked."

“I’ve been able to find my voice on these issues in a way I couldn’t have done when I was in the government, because you’re always limited by internal politics and not wanting to get too far out in front of the agency,” he said. “I feel like I’ve been a little bit uncorked.”

Having joined Brad Katayama's IEX Group (infamous for the Flash Boys' exposure), Ramsay  is calling out the “convoluted” and "illogical" pricing rules of major stock exchanges and compared the $25 trillion U.S. stock market’s structure to the Death Star of "Star Wars."

It will be hard for current regulators to shrug off Ramsay's comments,

“He’s a guy who accomplished a lot and doesn’t have anything to prove,” said James Burns, who worked with Ramsay at the SEC and is now a partner at the law firm Willkie Farr & Gallagher LLP.

 

Ramsay helped the SEC hammer out the post-crisis Volcker Rule, which bans government-insured banks from gambling with depositors’ money. The rule has an exemption -- it allows banks to continue “making markets,” or standing ready to buy or sell stocks and bonds from customers. Financial regulators initially clashed over that exemption, with banking agencies fretting that the language would open loopholes for Wall Street to exploit.

 

Ramsay helped ease the tension with clear language and humor, bank regulators said. Ramsay was the voice at the table “making us understand how market making is done, and what kind of parameters are around it,” said Scott Alvarez, the Federal Reserve’s general counsel.

And so when he uncorks a nasty reality check on the market, perhaps it is time to listen...

“The current market ecosystem is not sustainable, and significant changes are coming one way or another,” Ramsay said in a speech delivered at a New York technology conference in September.

 

Ramsay said his opinions grew more critical in recent years as he watched the market fragment into 11 public exchanges and more than 40 less-regulated private venues such as dark pools.

 

Trading became more complex and prone to technological malfunctions in the face of rules that were supposed to boost competition and create new choices for investors, he said.

 

He outlined how the market lost its way: conflicts of interest among brokers, a two-tier system favoring the speediest and a general sense that today’s rules have been crafted to the benefit of insiders.

*  *  *
Is "crafted for the benefit of insiders" not the very definition of a rigged game?

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Playtime's Over's picture

We all know this.  Just tell us when the staggering drunk,"economy", is going to be hit by the semi.

Bastiat's picture

Are there nailguns for 3/8" wire 9" timber spikes?  Or will he have to use a 5lb hand sledge?

KingGenius's picture

perhaps it will be a car crash for reasons of symbolization.

localsavage's picture

He looks like a child rapist.  He must be an insider.

BLOTTO's picture

If it was only the markets....

.

Its all rigged. Pick a topic? - Education? rigged. Feminist movement? rigged. Vaccines? rigged. Economy? rigged. Housing market? rigged. Oil prices? rigged. Electricity? rigged. Government? rigged. Candidates? rigged. Politics? rigged. Drug company's? rigged. Etc? rigged.

.

Well at least let us eat in fuckin peace...Food? rigged. Can i have a glass of water at least? Sure, but its rigged.

We all wind up eventually at the same place...its just, which rotten slice first did you bite into?

.

Im baked.

Liberal's picture

As a staunch liberal and advocate for the truth and nothing but the truth, I strongly believe this guy is lying through his teeth because he no longer works for the government.

Who are you Domestic Extremists gonna believe, this lying traitor or the government that never ever lies to its citizens?

NoDebt's picture

Another "former" whatever who turns into a tough guy after he's no longer in a position to do anything about it.

Fuck you, asshole.  You had your shot.  Now we print to infinity and you're going to sit there and fucking watch it happen, just like the rest of us.  

Did I say "dickhead"?  No?  OK, he's a dickhead, too.  There.  Now I feel better.

 

Self-enslavement's picture

This Jew is telling on his Jew friends?

He would be dead in 5 minutes.

He isn't telling us anything we didn't already know.

RafterManFMJ's picture

Aquaman admits in press release, "Water is wet."

I've got a Redpill friend, Marine, seriously clued in ... and he's asking me my opinion about buying some stawks...he's ready to go all in. F'in facepalm.

Sadly though, it might be the rational choice.

SMG's picture

Great!  Thanks for admitting that. Can I have all the wealth back I was cheated out of by Banksters rigging the system?

10th Amendment's picture

You have to earn it back... bend over.

Four chan's picture

good of him to speak up, when he is completely irrelevant.

new game's picture

so now it's ok to do your job when you can't-a fucking puke looking asscunt. hope you are reading these comments, because it is people like you that got this country where it is.

personally, your ilk should be taken out behind the woodshed and __________...

Tall Tom's picture

Another "former" whatever who turns into a tough guy after he's no longer in a position to do anything about it.

 

His name is on the Guillotine list. He knows it and he is now attempting to save it..or is it his head that he is trying to save?

 

Far too little. Much too late.

Sea127's picture

Are you for real?????

 

logicalman's picture

Life is like a shit sandwich.

The more 'bread' you have, the less shit you have to eat.

Down to Earth Thinking's picture

So very true ! that is why I always mention that we all live in massive illusions ! because we do. Everything you mentioned is an illusion and there are many more. 

But you can avoid them if you know how ?

ersatz007's picture

At least professional sports is pure

winchester's picture

MOUHAHAHAHAHHA

.....

 

 

sorry.

Bastiat's picture

Can't help myself . . . I'm imagining a Hilti gun with a 12ga load. 

ShorTed's picture

Any of the above, but I would have thought it'd happen sometime around last September when he made this speech!

glenlloyd's picture

Not that I'm aware of, the 'coil' of spikes would be a problem I think. A baby sledge might do it...

Theosebes Goodfellow's picture

~"Are there nailguns for 3/8" wire 9" timber spikes?  Or will he have to use a 5lb hand sledge?"~

My thoughts were exactly along those lines. I thought to myself,

"This guy better be cafeful as he might run into a nailgun or something."

bania's picture

<== watched midget porn

<== never watched midget porn

Bastiat's picture

Worked out a deal with the porn sites to get a cut per click?

SoilMyselfRotten's picture

Midget porn should be half off

Self-enslavement's picture

Short orgasms are only half as good as long orgasms.

Gringo Viejo's picture

Love midget porn.

Nothing beats watching a 4 foot woman get cornholed with a dick 1/4 as tall as she is.

CAN YA HEAR ME NOW?

Kirk2NCC1701's picture

<-- Looks gay

<-- Looks straight

logicalman's picture

Looks uncomfortable and a bit odd.

Can't really judge a guy just on that. Books and covers may spring to mind.

He kept quiet for 10 years or so, but at least he finally said something.

Puts him a cut above those who are still lip-zipped.

 

Calmyourself's picture

You all think he is admitting the system is rigged...  He is basically validating obama's trial balloon of a few weeks back .. Here come the executive orders to "FIX" Wall Street..  Obama is going to tie that milch cow down and let the FSA suckle her dry and many of you will clap if he is successful in using you against one another..

Miffed Microbiologist's picture

He looks asexual to me. There is a coldness about his eyes as if he would look through you if you ever met him. Aloof and analytical. No warmth compassionate vibe. A type that would be attracted to such a position without a hindrance of something as a conscience.

I can't understand his motivation for such a confession. Honestly, does he wish us to believe this was some sudden revelation that occured this morning?

Miffed

Fun Facts's picture

classic look of a pedo

gaydar with a twist going off

Keyser's picture

I was thinking the same and it just now news, 6 months later? WTF, over... 

Down to Earth Thinking's picture

been known for at least 10 years, only gotten worse and on steroids .

Gringo Viejo's picture

Off Topic: Was just on youtube listening to Lynard Skynard and the thought occured to me:

All these deaths in the music industry from the '50s on.......

were these people dying so others could collect the life insurance?

Just askin'........................................................

 

Enceladus's picture

Not for the insurance but for their portfolio. i.e 'Elvis is worth more dead than alive'

 

https://www.youtube.com/watch?v=YP2BVPCmDrg

logicalman's picture

Didn't know the moons of Saturn even had the internet yet.

Jack Burton's picture

The markets will not implode in a death star like reaction until the US Dollar loses all or a portion of it's reserve currency status, it's status as printable wealth. It is, after all, this very dollar which props up the markets and keeps them alive with Liqudity. If anyone in the world begings to sense the dollar is losing it's printability, while maintaining it wealth value, then it all implodes. Let's accept that our printable dollar, that still is valued as a true store of wealth, is the market prop. I look for a dollar crisis, followed by total collapse of the fake markets.

Self-enslavement's picture

More like Weimar style hyperinflation.

Escrava Isaura's picture

 

 

“We are all in the gutter, but some of us are looking at the stars.” — Oscar Wild

 

Jack Burton

In 2007 I met someone and we moved in together. So, obviously, I made a bunch of new friends.

In 2008, these new friends told me that they were taking some ‘computer’ lessons, in someone’s home/garage. They told me that they were paying about $4 thousand dollars, each, for these lessons. And they were promised jobs that they would be making about $40 thousand an year.

These were wonderful people. Most working class (babysitter, retail sales, and so on). Most Europeans.

So, when I heard about these courses I told my partner (and these new friends) that I was very worried, because $4 thousand dollars was lots of money for these people. That I was very skeptical. Very suspected of these teachers (set up).

Do you know what I heard back from my partner, and these new friends? “Don’t worry. These are good people. They are Jews.”

 

I kid you not! And these new friends were, mostly, Orthodox Christians.

 

Anyway, it’s 2015, and I no longer live with this partner, but I heard that they are all employed and doing great. One is making $92 thousand dollars a year. And bought a condo in Arlington, Va.

 

You are right absolutely right, dollar is a printable wealth.

 

And all Americans, as well as a large part of the world, depends on it.

 

When the dollar “this fake wealth” falls, it will be horrifying.

 

 

shouldvekilledthem's picture

When people like you lift their fat ass from the couch.

Fucking imbeciles.

stant's picture

Markets rigged bitchez , you got it here first

Thirst Mutilator's picture

Damn right... You need one of those HFT laser hookups to get the REAL porn microseconds before everyone else.

cpnscarlet's picture

I'm sorry, did I miss something about this being "news" except for the name of the guy who said it.

SSDDJust Another Name.

no more banksters's picture

"The Market Is Rigged"

No kidding. I'm speechless!

weburke's picture

and so they lead us to the imf sdr, using brics along the way.

One And Only's picture

Bart Chilton got a haircut?