SLP

SLP

Frontrunning: November 26

  • National Guard, police curb Ferguson unrest as protests swell across U.S. (Reuters)
  • Ferguson Reaction Across U.S. Shows Complex Racial Split (BBG)
  • Democratic senator Schumer: Democrats Screwed Up By Passing Obamacare In 2010 (TPM)
  • Veto threat derails Reid tax deal (Hill)
  • Justice Department Investigating Possible HSBC Leak to Hedge Fund (WSJ)
  • Merkel hits diplomatic dead-end with Putin (Reuters), and yet...
  • Merkel Said to Reject Ukraine NATO Bid as Rousing Tension (BBG)
  • HSBC, Goldman Rigged Metals’ Prices for Years, Suit Says (BBG)

Is The SLP The NYSE's Answer To Direct Edge's "Advance Look" Enhanced Liquidity Provider Program Or You Trade You Lose, You Trade Goldman Wins

There is a curious article in the latest edition of Traders Magazine. It is curious mostly because it was allowed to be published, as it definitively peels off the cover of what truly happens at the pantheon of stock exchanges, that dominated by a private club of select high frequency traders, who obtain better and faster pricing than everyone else, and where the group of "select few" is seemingly legally allowed and even encouraged to front-run the "every-one else" (you, dear reader, are most likely in the latter camp). If you ever wondered why HFT generates profits of over $20 billion a year, please read this article.

The Collapse Of Liquidity Provisioning Since The Goldman SLP Coup

The HFRXEMN plotted since the time that Goldman Sachs barged on the liquidity provisioning scene with their SLP cover for PT domination. Maybe the NASDAQ should take a look at this and come up with some follow up complaints about what a scam the NYSE's program to gift 5 millisecond latency packet sniffing to 85 Broad truly is.

It Is Time For The SEC/NYSE To Respond To The NASDAQ's SLP Clarification Requests

Now that Goldman and the NYSE's Supplemental Liquidity Provider program have finally attracted a critical mass of necessary (and hopefully sufficient) public attention, Zero Hedge would like to readdress an overlooked complaint in which none other than the NASDAQ Stock Market LLC vociferously blasts the NYSE, the SLP program, and some of the underlying assumptions. Zero Hedge has discussed this issue extensively in the past, yet neither the SEC nor the NYSE (essentially, FINRA) seem to have ever addressed any of the NASDAQ's concerns. Zero Hedge believes the time has come for the later two regulatory organizations to provide some feedback to NASDAQ's concerns.

SLP Brokers Taking Their Role Not Too Seriously, Others Gunning Market

Good to see that we have a perfectly normal, efficient and gapless market. Goldman deserves a golf clap for providing sublime hi-fi liquidity through the SLP. The chart below is not some crazy 5.0 + beta stock, it is the Standard and Poors 500 index, which, last time we checked, had about 500 5.0+ beta stocks (I jest for regulatory impact).

SLP Brokers Taking Their Role Not Too Seriously, Others Gunning Market

Good to see that we have a perfectly normal, efficient and gapless market. Goldman deserves a golf clap for providing sublime hi-fi liquidity through the SLP. The chart below is not some crazy 5.0 + beta stock, it is the Standard and Poors 500 index, which, last time we checked, had about 500 5.0+ beta stocks (I jest for regulatory impact).