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Regulators are looking into whether high-frequency traders routinely distort stock and futures...

Regulators are looking into whether high-frequency traders routinely distort stock and futures markets by engaging in illegal "wash trades" - those in which the same party acts as buyer and seller in the same transaction. Of concern are the operations at the CME and ICE which regulators feel aren't sophisticated enough to flag the trades.
Comments (7)
  • minecanary
    , contributor
    Comments (411) | Send Message
     
    So we'll have Gary tits-on-a-bull Gensler look at it for 4 years and then find nothing amiss. Numerous congressional panels will also put their idiocy on full display while others Senate members front run any legislative action...since there can't be a conflict of interest for them.
    18 Mar 2013, 08:02 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Lol...the CFTC and SEC are useless, and a waste of taxpayer money.
    18 Mar 2013, 02:21 PM Reply Like
  • New Low Observer
    , contributor
    Comments (2033) | Send Message
     
    This is a matter that we've outlined in our August 2009 SA article titled "Applied Materials, Cognizant: After-Hours Conundrum" (found here: http://seekingalpha.co...). We have extensive records of this game that is played and how it will likely end.

     

    Watch your stocks as they will get crushed if serious action on this matter is taken. However, we're in agreement with MineCanary, we doubt that anything of material will be done since the SEC has been complicit in this fraud for a very long time.

     

    Regards.
    18 Mar 2013, 12:24 PM Reply Like
  • New Low Observer
    , contributor
    Comments (2033) | Send Message
     
    Our comment from our August 2009 SA article titled "Applied Materials, Cognizant: After-Hours Conundrum" article above:

     

    "My suspicion is that institution(s) are accumulating short/long positions as the price of the stock rises during the regular hours. Once the market closes, the same institution sell/buy the shares to/from themselves or a related party. Additionally, options for the stock could have been purchased, sold or written in anticipation of the expected change in price after-hours."

     

    Regards.
    18 Mar 2013, 12:45 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Your case mentions large inst buy/sells, not HFTs. Of course the SEC knows the score, just like they know the score on fails-to-deliver data. They are useless, and a waste of taxpayer money.
    18 Mar 2013, 02:29 PM Reply Like
  • New Low Observer
    , contributor
    Comments (2033) | Send Message
     
    Whitehawk,

     

    SEC and CFTC..."our money, not at work"

     

    We've got an archive of this stuff at our site. Just posted a partial list here (http://bit.ly/147vYOM).

     

    Regards.
    18 Mar 2013, 02:43 PM Reply Like
  • racchole
    , contributor
    Comments (309) | Send Message
     
    HFT create buying opportunities for buy-and-hold-and-cost-... investors.
    18 Mar 2013, 01:55 PM Reply Like
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