With the scrutiny on high frequency trading increasing every moment Chuck Schumer is awake, the head of electronic trading at GS, Greg Tusar, is calling out regulators to bring it on.
“The reality is our inter-market routing has become highly technical and highly complex and it’s not a bad idea to step back and take a look at it. We need to find out if there is anything we should change and where the gaps in regulation should be closed.”
With Goldman being one of the leaders in the nanosecond timing market, it appears they’ve become tired of having others come up the regulation gaming learning curve and nipping at their heels. Given the thorough, air-tight history of trading regulation, finding a way around whatever electronic trading plans make Schumer sleep better at night should take GS about as long as executing one of their trades.
Chuck Schumer called out flash order types. GS has a big stake in flash order types (probably their own trading and a 20% stake in directedge). GS takes advantage of the fact that the public can’t separate flash from people who trade with computers and manages use the situation to bring heat on some of their competitors. Brilliant.
Diana Olick & Becky Quick
VS.
MCC and Bertha Coombs
at UltimateSurrender.com
Discuss
2,
Becky Quick gets tapped out, but her lazy eye stays in.
I stopped reading when I saw the word nanosecond. Is that the way you are trying to be funny, or are you as ignorant as you sound?
@1
I believe you don’t know what you are talking about either.
can someone please hire greg an editor? there are a grand total of three periods in this entire post. let’s start there. then we can move on to subject orientation.
Greg is charged with bringing back the Yahoo Finance message board loonies here. He might succeed.
@2
Great website, but have you ever seen them actually have a crowd in their arena?
@4
Well, Schumer did indeed write the letter specific to flash:
http://schumer.senate.gov/new_website/record.cfm?id=316372
Directedge is still supporting it’s use, while nasdaq and nyse are in agreement to ban it
http://www.ft.com/cms/s/0/039fc8f6-7a11-11de-b86f-00144feabdc0.html?nclick_check=1
http://www.reuters.com/article/ousiv/idUSTRE56R5OA20090728
And GS does own 19.9% of directedge
http://www.wallstreetandtech.com/showArticle.jhtml?articleID=210200348
So, where exactly do I not know what I’m talking about?
@8
Who else owns DirectEdge? Why are you leaving them out of this?
You can be against flash orders, and at the same time not against HFT. It’s easier to understand why flash orders are questionable, but HFT is here to stay, there’s no doubt about that. The SEC should get off their ass and tell the players how to play this game. (And you forgot dark pools.)
@4
Sorry, the last link didn’t actually reference the ownership stake.
http://www.directedge.com/frequently_asked_questions.aspx?s=about
“With a 31.54% stake, the ISE is currently the largest shareholder of Direct Edge, followed by Knight, Citadel, and Goldman, each with 19.9%.”
@7
Yes. Both men and women
@9 dark pools and flash are the same thing
Headline (and story!) would have worked perfectly well on The Onion.
John from Housing Doom blog
@8
Actually, Nasdaq is all for a universal ban. Until that happens they’ll continue flashing, thank you very much.