Computers on Wall Street are Buying and Selling to Themselves!

As if we needed another story to further solidify the running joke that has become the U.S. stock market.  In this article from Bloomberg we find out that:

High-frequency trading firms are drawing scrutiny from U.S. regulators seeking evidence that they may be distorting market prices by conducting transactions with themselves, said two people with knowledge of the matter.

But fear not America, the SEC is on the case!

The Securities and Exchange Commission and Commodity Futures Trading Commission have sharpened their focus on high- frequency and algorithmic trading since May 6, 2010, when about $862 billion was erased from stock values in 20 minutes before share prices recovered from the plunge.

Wow, that makes me feel a lot better.  Two years “sharpening their focus.”

Oh well, perhaps the CFTC will do something?

The CFTC has been considering issuing a so-called concept release, a step prior to a formal rulemaking, which could lead to new testing, supervision and oversight requirements for high- frequency and automated trading.

They are “considering a concept release!”  Must be busy working on the Jon Corzine case right?  Which beach is he laying out on this week?

Full article here.

4 Comments

 Add your comment
  1. I guess we are supposed to be surprised that the market is rigged

  2. Free .999 Silver Bullion with the purchase of Free Designer’s Clothes For Life at DesignerFree.org

  3. Of course this is true, but I think its being scaled back. If you look at the volume of trading, it has gone down 60+% in recent years. I think the bankers no longer trust algorithms to maximize their theft.

Leave a Reply

12 Trackbacks

  1. SEC is on the Job! Not????? They would not know what fraud is even if it fell in the lap - Alternative / News London Ontario - News, sports, entertainment, business, travel, homes and auto sections. (Pingback)
  2. Computers on Wall Street are Buying and Selling to Themselves! – Mike Krieger « InvestmentWatch (Pingback)
  3. Mark Cuban Calls the Stock Market a “Platform for Hackers” | A Lightning War for Liberty (Pingback)
  4. Computers on Wall Street are Buying and Selling to Themselves! - News and Current Events (Pingback)
  5. Computers on Wall Street are Buying and Selling to Themselves « InvestmentWatch (Pingback)
  6. Newsworthy 6-29-2012 | Opine Time (Pingback)
  7. Computers on Wall Street are Buying and Selling to Themselves | Free The Nation (Pingback)
  8. “Obamacare,” The Betrayal of The Constitution — Is It Time to Start Locking Up Bankers? — Computers On Wall Street, Are Buying and Selling To Themselves — I Hereby Secede « (Pingback)
  9. TaJnB | TheAverageJoeNewsBlogg (Pingback)
  10. Computers on Wall Street are Buying and Selling to Themselves! « Stop Making Sense (Pingback)
  11. Computers on Wall Street are Buying and Selling to Themselves | Victors Post (Pingback)
  12. Computers on Wall Street are Buying and Selling to Themselves … thereby distorting prices « paulthepaperbear (Pingback)