The SEC chair assures that nothing is fucked, vis-à-vis high frequency trading.

U.S. Securities and Exchange Commission Chair Mary Jo White on Tuesday responded directly to allegations in Michael Lewis’ new book about high-frequency trading markets.

“The markets are not rigged,” she told a U.S. House of Representatives panel. “The U.S. markets are the strongest and most reliable in the world….”

White on Tuesday tried to soothe some concerns about whether firms are wrongfully trading ahead of others.

She said it “is not unlawful insider-trading.”

Also: Dmitry Balyasny.

Attempting to put a tag on what has changed is like herding cats at times, he considers a cause for the shift in the US Federal Reserve more hawkish and the guidance had become additionally vague. Another issue he said dampened the positive party for stocks was the Michael Lewis book Flash Boys about high frequency trading. “Calling the market ‘rigged’ when Internet stocks were getting hammered didn’t help confidence and contributed to the de-risking.” Nothing HFT was one of the “small negatives” contributing to the market decline, he observed the common professional perception that HFT profitability had peaked five years ago and competition has come into the arbitrage market. In other words he believes much ado about nothing.

U.S. SEC chair to Congress: ‘The markets are not rigged’ [Reuters]
Balyasny: HFT, Activists Partially To Blame For Tech Decline [ValueWalk]
Earlier: Citadel Exec Has No Idea What Michael Lewis Is Talking About, Goldman Sachs Hasn’t Heard That Some People Don’t Like Dark Pools, Some On Wall Street Have A Right Mind To Burn Dog-Eared Copies Of Liar’s Poker At Market Close, BNP Paribas Employee Just Earned Himself A Starring Role In Michael Lewis’s Next Book

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  1. Posted by @KapaluaMak | April 29, 2014 at 4:36 PM

    Ms White is accurate in saying "It is not unlawful insider-trading." The HFT are simply following the rules that the SEC created without any understanding of how those rules could be gamed.

  2. Posted by BNP Scarf Quant | April 29, 2014 at 4:48 PM

    It's on. Time for Michael Lewis to counteract this, which I'm sure he cant do cause he is a hack. 1.5 years at Solly now he's a market genius.

  3. Posted by Chaz52 | April 29, 2014 at 7:10 PM

    OK Yous guys. Listun up. Yous knows who dis is. Yous knows dem markits is not rigged. Yous has hurd me says it – dere aint nutin wrong wit insider trading eider. Yous tink I got two be da worlds greatest reporterer by misssstake. You tink I gots thru Pace on my good looks (hey, and don't be takun any of dem cheap shots at the misses). It was hard wurk and lots of brain powers!

    Soes, Mary Jo is just followin my lead here. As everyone always doeses. CNBC sucks!

  4. Posted by Gotothedarkside | April 30, 2014 at 8:45 AM

    Have to say the reps from Georgia and Mass gave Maxine a serious challenge to her reign as the queen of cluelessness on this one. Fuckin scary-