high frequency trading

  • 09 Sep 2014 at 12:35 PM

‘Flash Boys’ Coming To A Courthouse Near You

When Michael Lewis declared that high-frequency trading had rigged the U.S. stock markets, it sounded to three law firms and several pension funds like the kind of thing you could sue over. And so they have. For it stands to reason that if the markets are rigged, someone or thing sue-able has rigged them. And, according to the law firms and pension funds (and, for good measure, Rhode Island’s capital, whose mayor just happens to be running for governor on something of an anti-Wall Street platform), the markets have rigged themselves. Read more »

A federal appeals court found that making Goldman angry is not a violation of federal law, freeing poor old Sergey so that he could face the same charges in state court. But making Ken Griffin angry? That’s a whole other story—one that could involve 20 years in prison for a plucky 26-year-old programmer who Citadel politely asked to stop downloading its secret sauce onto personal hard drives, but who kept doing it anyway. Read more »

It’s because he has to. Read more »

Until recently, like, say, this morning, Bill White headed the group that made headlines this week for fraud (allegedly lying to clients about high frequency trading, this and that). And, technically, he’s still got his job, though for the time being it will involve answering questions posed by Attorney General Eric Schneiderman, and not coming within 200 feet of clients. Obviously, CEO Antony Jenkins would prefer to fire White or at the very least spend an hour or so pelting him crumpets, since he really kind of put his boss in an awkward spot in light of the whole promise Jenkins made re: Barclays not being the kind of bank that does this kind of stuff anymore. But time and place, etc. Read more »

Antony Jenkins, promoted to run Barclays Plc after the Libor scandal, pledged to overhaul the bank’s culture, committing to values of integrity and respect. Allegations of fraud on his watch are undermining his plan. Barclays lied to customers and masked the role of high-frequency traders as it sought to boost revenue at one of Wall Street’s largest private trading venues, New York Attorney General Eric Schneiderman said in a civil complaint filed June 25. He cited a pattern of misleading and false representations that went on as recently as April. The first allegations of new misconduct since Jenkins was named chief executive officer of the London-based bank in August 2012 mark a setback in his efforts to break with the past and sent shares plunging the most since he took over. A hit to the reputation of the Barclays LX dark pool also would hinder Jenkins’s effort to turn around the firm’s investment bank by focusing on equities. [Bloomberg]

Chad Johnson, head of New York’s Investor Protection Bureau, told a conference today that while Attorney General Eric Schneiderman examines trading practices, Wall Street should help by suggesting ways to change for the better. It would be a mistake to think concerns about stock-market fairness are just bad publicity or extreme language used by critics, he said…He welcomed moves by some dark pools to make certain regulatory filings public. He said he hopes high-frequency trading firms and dark-pool operators “will engage in some soul-searching and step forward with ideas about how certain practices ought to be curtailed and reformed for the better.” [Bloomberg]

The government wants to make sure that the Elect are remaining on a righteous path. Read more »