and they seem to be giving him hot flashes…after finally admitting that it has been playing these games for a long time, the Nasdaq Stock Market now supports a ban on so-called “flashes,” orders sent to a select group of traders fractions of a second before revealing them publicly, according to Senator Charles Schumer.
Schumer said in a statement he discussed the controversial issue — which has implications for fair prices and the way orders circulate through increasingly electronic markets — in a personal call with Nasdaq CEO Robert Greifeld, as if that mattered.
here’s the deal: another automated exchange has been gaining ground by copying publicly the techniques big houses use, of executing internally, and to their running buddies, and then sedning the transactions to the tape.
may thinly traded stocks can be pumped this way.
and others can be dumped.
and either way, the prident speculator gets clipped for 1/8, or sees enormous vol and thinks it is news based.
nasd listed “flash orders, internalized orders, enhanced liquidity providers, Block Talk orders, and dark pools,” as order types that do not support transpraent markets–but what else is new?
you’ll hear garbage about “dark pools” here all this nastiness occurs.
james cramer’s brain would be an example of one.
“We cannot allow our marketplaces to enter a race to the bottom that caters to certain traders at the expense of other investors,” Schumer said in the statement.
of course the nyse doesn;t like flashes. on the nyse they have been being done for 100 years by the keeping of “private books” in whic hthe specialists move stock w/o a market when they can get a clip.
it’s in the original nyse charter to be able to rip off prudent speculators and honest investors.
Posted under business
This post was written by admin on July 29, 2009
