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Is This What's Causing Today's Market Puke?
Correlation is not causation but the plunge began just as The SEC voted in favor of high-speed trading firms being registered with FINRA...
- *SEC UNANIMOUSLY APPROVES PLAN REQUIRING HFT FIRMS JOIN FINRA
Regulate Us? We'll show you what happens when you do that...
The Securities and Exchange Commission on Wednesday voted to propose a rule that would force high-speed trading firms to register.
Such high-speed trading firms, when they conduct business only for their own accounts, are currently exempt from registration with the Financial Industry Regulatory Authority.
The rule that allows this exemption hasn't been substantively amended since 1983, the SEC says. The Michael Lewis book "Flash Boys" has brought more scrutiny on high-frequency trading.
* * *
The proposal will
“ensure that all broker-dealers active in the off-exchange market, not just some as it is today, are subject to the same comprehensive set of SRO regulations and compete on a level playing field,”
SEC Chairman Mary Jo White said.
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maybe they take the market down and then argue they create liquidity - :)
This so they can 'round up the usual suspects '
Fuck you Mary Jo! Shut them down
I was thinking the same thing. PMs be like: "turn that fucking machine on sell and get us the fuck out!"
DO YOU SEE WHAT HAPPENS LARRY??.......
the elephant in the gymnasium finally got noticed? huh! smoke and mirrors, minor blip, back to controlled markets soon...
Yikes, let's close up shop and move the whole thing to Singapore boys. At least the gov'ment regulators have not heard about these new fangled computer things yet.
Phoenix Capital just posted an article @ the top of ZH's page- market to now rally hard intraday.
Never fails.
algos following the retail investor out, after they drove us out with their frontrunning?
...never?
I'm no expert here, but why would there be a plunge? We all know the SEC is all bark and no bite. Nor is the DoJ.
Sell the "rumor" that the SEC might actually regulate, then buy the "news" that the regulations will be toothless.
BS, the DoJ has plenty of bite for the "folks" that don't hire the right law firms to represent them or donate to the right people.
...this is why we can't have nice things..../sarc
" There's Billions sitting on the sidelines, " is what I heard on TV.
Also, "not enough houses" ... "too many buyers" is what's causing that 'crisis.'
Nothing at all to do with the millions and millions of [broke] unemployed peeples.
up arrowed you for the Labowski reference.........
"Back off or we kill this market."
Goldman gets out of hft, and this happens. Damn they are one lucky firm. Always seem to be on the right side. GOD THEY ARE SMART
She is too ugly for sex purposes.
The most ugliest, perverted, and mentally sick are the today America heroes and its leaders.
spx gap 2053ish
LOL and USO and UWTI cruisin - more inventory please
Inventory builds are bullish actually.
It's only oil...stuff ain't worth more than a dollar a barrel of any type of grade.
Too bad it's all backed by digital dollars. God forbid if someone dared by an actual book. That's probably a war crime insofar as Wall Street is concerned.
Shoot, everbody knows that liquidity flows downward.
Now que a small abc rally to the upside
its a burp
regulated just means its now illegal NOT to give them kickbacks
Bernie Madoff was heavily regulated by the government. He had fancy lunches with the government regulators and everything.
weekend at bernies, the HFT edition
I thought there has been no actual market lately...
If true, this simply reminds me of the "sheriff hostage" scene from blazing saddles...
stupid fucks.
Difference between them and sherriff Bart is they are quite willing to pull the trigger since there's nothing in their pointy little heads to hit.....
I am soooo SMART and
they are soooo DUMB
~ Sheriff Bart
I guess I wouldn't be happy about the kickbacks/bribes either, but you gotta pay to play. especially at this level...
or cattle futures or land deals - Hitlery
or speaking fees, after holding public office Mrs Hitlery
writing books while in office (on taxpayers dime) - Bushes Oblamo
Mrs NoVa sells into Federal contract vehicles. She (retiring in a year or so) and her company are honest, but the the whole system is so rigged against common sense. The "awarding" of contracts is so obfuscated that it is next to impossible to get a straight answer from the Feds as to why 1 firm won the contract and another lost.
Payolla - especially to minorities. It is the sole reason why Southern MD has more millionaires per capita than any other metro area. Just this morning, I was in the gas station, a thug looking guy with baseball cap turned sideways come walking my way. Walks past me and gets into an E class Mercedes. Another similar guy in passenger seat.
I'm thinking reallly... a nice mercedes. I then get into my Hyundai and drive to work.
none of it is sustainable. These thugs will have to work for a living soon enough, or die trying...
Work harder millions of people on welfare are depending on you.
Open the pod bay doors Hal.
Well played...
Phuck you HFT!! Put that in your pipe and smoke it! Phuckers.
Yeah right. FNRA's sole purpose is to fuck little guys like me while providing the illusion that they are protecting the retail "investors". Same as it ever was, the bigger the fish the less they have to worry about the regulators.
It's worked out great so far, just look at all the layers of paper they can apply to cover up any unsightly problems.....
Dr. So true
We'll show you...and all of our retirement accounts as well!
Shouldn't one of the "markets" be breaking right about now? Self help declared in 3-2-1
Yeah, I guess HFT just "FELL THROUGH THE REGULATORY CRACKS" for the past five years. If HFT firms have not been registered, the remedy is not to simply require that they be registered, but rather to CHARGE them for carrying on registerable activities (ie. dealer / advisor) without a fucking licence. Oh yeah, leaving aside the whole registration issue, there is something called MARKET MANIPULATION that is supposed to be illegal, WHETHER OR NOT YOU'RE FUCKING REGISTERED. Heads need to roll.
You need to be reminded on who makes the rules around here, it's the institutionally insane speedy ones, and they never get things wrong, they are a legend in their own minds and this can not be changed, they are trained to respond to resistance in many ways. So unless you want a couple guys in white jackets to come by and check you into the coo coo's nest, you better just STFU and like it.
The typical FINRA arbitrator has no business in settling HFT disputes.
More of the same. Fox guarding the hen house.
the hen guarding the fox house is moar like it
Nice, "The Market" can no longer be rigged by computers.... wake me up when the "Curbs In" sign is flashing across the CNBC headline ticker.
If you want this year's homecoming parade in my town, you have to pay for it. [/Mayor Carmine De Pasto]
"So if you mention extortion again, I'll have your legs broken".
mary jo white - words of advice
don't go in tall buildings with open windows
They are hungry and, so, must eat the children!
All your stock market are belong to us!
Temporary blip on the road to 2200. We will bounce around 2055-2058 (100 SMA) then straight up on jawboning hopishness....
the appropriate officials have bullard / draghi on speed dial to counsel public utterances
I thought computers were supposed to be free of emotion, like temper tantrums.
Mr. Spock lied..
if SEC serious about regulating ... i propose they force CNBC babes to wear see-thru silk blouses
here's my fantasy: unmarked cars filled with un marked men pull up in front of the banks and hft firms. They pull thm down flights of stairs by their fucking hair and they're held at a undisclosed detention facility. The same is dome for their cunt as wives and kids. It would be more beautiful than an ocean sunrise.
How fucking weird, I have been having the exact same fantasies.
According to The Office of Financial Research (OFR):
http://financialresearch.gov/briefs/files/OFRbr-2015-02-quicksilver-markets.pdf
March 17, 2015
Quicksilver Markets
by Ted Berg
One of the missions of the Office of Financial Research is to analyze asset market valuations and if there are excesses, explore the potential financial stability ramifications of a sharp correction. The author argues that U.S. stock prices today appear high by historical standards. Although he notes that the financial stability implications of a market correction could be moderate due to limited liquidity transformation in equity markets, he addresses other financial stability issues that may be more relevant, such as leverage, compressed pricing of risk, interconnectedness, and complexity.
Option-implied volatility is quite low today, but markets can change rapidly and unpredictably, a phenomenondescribed here as “quicksilver markets.” The volatility spikes in late 2014 and early 2015 may foreshadow more turbulent times ahead. Although no one can predict the timing of market shocks, we can identify periods when asset prices appear abnor-mally high, and we can address the potential implications for financial stability.
The bull market achieved an important milestone in March: its six-year anniversary. From the market bottom in March 2009 through the end of 2014, U.S. equity prices tripled. This gain has been largely driven by the recovery in corporate earnings, which have increased by a similar magnitude over this period. Although the positive trend could continue, the upturn has persisted much longer and prices have risen much higher than most historical bull markets, despite a weaker-than-normal macroeconomic recovery (see Figure 1).
This bull market has also benefited from unusually low interest rates. Some argue that the market’s price-to-earnings (PE) ratio is justifiably higher than the historical average given that interest rates are at historic lows. After all, the intrinsic value of a stock is the present value of its discounted future cash flows. And interest rates are a key factor in determining the discount rate. The lower the discount rate, the higher a stock’s present value. However, the relationship between interest rates and stock prices is more complex; a lower interest rate environment may portend a lower long-term growth rate for corporate earnings and cash flows. When estimating intrinsic value, it is naïve to simply reduce the estimated discount rate without also considering the potential adverse consequences for the growth rate of cash flows.
Many expect the Federal Reserve to begin increasing short-term rates later this year. This will have important implications for stock prices if longer-term rates begin to increase as well. Under one scenario, a slow and gradual increase in long-term rates would be bullish, reflecting investors’ positive expectations for higher U.S. economic and corporate earnings growth. In an alternative scenario, however, interest rates would increase dramatically and unexpectedly, which would adversely affect stock prices.
In light of this interest rate backdrop, the question is whether stock prices have run too far ahead of fundamentals. Although certain traditional valuation metrics, such as the market’s forward PE ratio, do not appear alarmingly high relative to historical averages, other metrics to be discussed — the cyclically adjusted PE ratio (“CAPE”), the Q-ratio, and the Buffett Indicator — are nearing extreme levels, defined as two standard deviations (or two-sigma) above historical means.1
Historically, periods of extreme valuations are eventually followed by large market price declines, some of which have contributed to systemic crises. On the other hand, extreme valuations have been known to persist for extended periods. For example, in a December 1996 speech, former Federal Reserve Chairman Alan Greenspan famously used the phrase “irrational exuberance” to describe investor enthusiasm for stocks. At that time, the forward PE ratio — the ratio of the market price to analysts’ consensus earnings forecasts for the next 12 months — was approximately 16 times. Although this was above the historical average, it was not alarmingly high. However, the CAPE ratio was much higher at 28 times. The S&P 500 more than doubled over the next three years, with valuations reaching all-time highs in March 2000, driven by the boom in technology stocks. The tech bubble eventually burst; the S&P 500 index decreased almost 50 percent and the tech-heavy Nasdaq index dropped nearly 80 percent from peak to trough.
now joe six-pack can enter the the stock buying ring, armed with boxing gloves, and the SEC opponent can enter with a handgun, and the SEC has all rights to the recordings of the match.
this should be very lucrative for SEC employees.
citadel vs joe six-pack, the SEC findings, we seen nothing.
I smell a skunk.Something's up.The Treasury trading desk along with the Fed probably has been looking at how these outfits will contribute to systemic risk.Funny that they just came down hard on a lot of foreign banks operating in the U.S.There's got to be a high level of risk factors right now that concern Treasury and the Fed with their manipulation games now openly revealed even on TV.Every investor out there ought to know by now that all markets right now are being controlled and rigged.Low volatility today and lack of volume coincides with what's happening.
i think oe of 2 things ... grexit will happen over the weekend ... or janet yellen farted.
The usd/jpy strength looks like some carry trades are starting to unwind. Carry traders covering their borrowed usd positions(buying back $usd) causing usd strength even though the equity markets are selling off and the yen is strengthening.
Things are starting to look ominous, before the final q-4 '14 GDP print on Friday.
Look at this article. The central banks are a in "full retard" save the world mode.
Nikkei: BOJ's stock portfolio swells to 10 trillion yen
ten trillion yen, what is that, about three fiddy?
My head hurts to think there really is an outfit called...
"Financial Industry Regulatory Authority"
It's outrageous. I bet they're over budget and make lots of money. George Orwell...we hardly knew ya.
This really should be handled under FinCEN. Just my opinion. Blatant money laundering scam thru HFT.
Mr Kerry is begging for help?
"So where does that take you? Anybody standing up in opposition to this has an obligation to stand up and put a viable, realistic alternative on the table. And I have yet to see anybody do that."
Reform the drug laws, drug test your representatives, make lawmakers be able to do their own taxes. Once ur done there get back to me, I got a hugh list of gvt troubles.
the Oligarchs are running the shit show people, and they are winning, want to know why?
They got us all fighting amongst ourselves, and are brainwashing the youth to revolt against liberty and swallow the hollow form of socialism. BRB, I gotta go puke!
Call Hillary, she has an appointment with some diplomates and never refuses a challenge.
While FINRA is at it, they should have every condo and apartment owner from Asia, that made a purchase in the N.Y. downtown area over the last 5-6 years get registered.
Back to all time highs by Friday and the next upcoming planted rumors...the fed bubble is unstoppable because so are the 0% rates and money printing.
They'll present in a defence argument; quants are people. Shut the fucker's down. It's all a skimming operation to collect on large block trades.
SNAP DEPRESSION coming in next 6 months.
People have finally figures out what's up from 08/09. Demand is cratering in all developed countries.
Central Banks are powerless.
Everything is fine. Get on disability & grab a bong!
Strawberry Alarm Clock - Incense And Peppermints
https://www.youtube.com/watch?v=qhYLz63csS0
The Dow chart for the last three days reminds me of that plane crash in the alps.
Up ditty up up, then down dity down down. Nice smooth arc.
A 'gradual descent'.
.
Careful, this could all be a set-up for Fantastic Friday.
I think the Japanese Window Dressing is the reason. Sell US stocks and convert back to Anti-Tsunami Walls.
This ruling just means that the firms must become Broker-Dealers only...Its really about the fees for SEC/FINRA SEC 15b9-1
To become a member of FinRa you must be a Broker-Dealer. That means you have pass your Series 7. To even sit for your Series 7 you must be sponsered by a FinRa Broker-Dealer.
This will be a huge pain in the ass for HFT firms. FinRa will just tighten requirements concerning who can sit for Series 7.
To be in the club you must be sponsered by a club member.
This should be interesting.
Sorry..but your confused you can be a RIA or IA or a solicitor...you do not have to be a broker-dealer. HFT do have other options
FINRA will require a Broker-Dealer to register an HFT firm?
I don't think I am confused. I have tried to join the club. You have to be sponsored by a registered Broker-Dealer to take the exam to become a Broker-Dealer.
That is what I was told.
You don't think FINRA will let just any slob register a HFT. Even an licensed attorney has to take the Series 7 to become a Broker-Dealer.
Am I wrong?
Sic the regulators on them!
Meanwhile, Chokepoint never really went away.
No buybacks, no rally :(
On a bike ride around San Diego Bay and saw 10-15 LEOs with large cordura assault cases preparing for what looked like a "training" event...this was the Harbor Patrol for God's sake!! They're getting ready.
I bet harbor patrol in San Diego is quite busy given our border security, and I bet they are charged with providing some degree of security for the Navy, etc.
Earlier someone commented that the SEC "was all bark and no bite". Actually, it's far worse than that, as it is really like someone holding the "bank" door open, while fuckers are robbing the BANK!!!
That's it...they got a tip that a bunch of Mexican sailors are about to invade
You don't know the Harbor Patrol...they have responsibility for neither
Every day gets more and more interesting. Watched some cool HFT pieces on-line thanks to this joint.
This is a great day for AI, people have to register their algos
Free undocumented AI.
--SkyNet
Oh come on folks. Everyone knows that fundamentals make the new era market go uo or down....
Mary Jo White should be sent to Mordor where she belongs.
Puke ? WTF... we're talking about ~ 1%. The stox roaches surely have been pampered real good. HAHAHAHA... the shyte show is still going strong.
"Open the pod bay doors Hal!"
Turn on the kitchen light and they scatter like roaches.
The next step to flushing the HFT toilet is to impose a tax on transactions and quotes. We had one before.
GOLDMAN SACHS SINKS AFTER ONE BORG MEMB... PARDON, BOARD MEMBER ADMITS HE IS HUMAN
Investors fear the company may be hidding more humans and demand a 100% Cylon administration.
Source: www.financialpaparazzi.com
Mary Jo White controlling spermicidal flows ? LOL