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SEC Chair Insists 'The Markets Are Not Rigged'

posted by LaminatorX on Wednesday April 30 2014, @01:04PM   Printer-friendly
from the The-House-Always-Wins dept.

Papas Fritas writes:

US Securities and Exchange Commission Chair Mary Jo White told a US House of Representatives panel that she flatly rejected claims that retail investors are being fleeced by high-frequency traders who can use their speed to jump ahead with buy and sell orders that fetch better prices. "The markets are not rigged," says White. "The U.S. markets are the strongest and most reliable in the world." White's comments to the House Financial Services Committee mark the first time she has directly responded to allegations in Michael Lewis' new book "Flash Boys: A Wall Street Revolt" that high-speed traders are engaged in a form of front-running, in which the firms are able to quickly identify an investor's desire to buy a stock, rush to buy it first and then sell it back at a higher price. The SEC has been reviewing equity market structure issues, particularly following the May 6, 2010 flash crash incident when the Dow Jones Industrial Average sharply plunged before quickly rebounding. Although staff at SEC are considering whether to launch some pilot studies to test different regulatory proposals, there are no immediate plans to issue rules to crack down on high-speed trading or trading in unlit markets. "I want to be very clear that the market metrics suggest that the retail investor is very well-served by the current market structure."

 
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  • (Score: 2) by TK on Thursday May 01 2014, @05:48PM

    by TK (2760) on Thursday May 01 2014, @05:48PM (#38575)

    hypotheseesesseseses

    After a few insightful mods, I had to mod this comment of yours as funny.

    Don't worry, at least one person learned something from your comments, and is thankful that SN can have comments of this caliber. I guess I'll stick around.

    Also, /s/vein/vain

    --
    The fleas have smaller fleas, upon their backs to bite them, and those fleas have lesser fleas, and so ad infinitum
    Starting Score:    1  point
    Karma-Bonus Modifier   +1  
    Total Score:   2  

  • (Score: 1) by infodragon on Thursday May 01 2014, @06:00PM

    by infodragon (3509) on Thursday May 01 2014, @06:00PM (#38583)

    Thanks for the comment, at least my effort wasn't in VAIN! I used to be the worlds worst speller, with a lot of work now I am just terrible!

    I intended to play devils advocate and ask for answers to the implied questions of the comments. I was not holding my breath but am waiting one day for someone, out side my circle of research, to have an intelligent and informed answer to these questions. In the mean time I will continue to ask the uncomfortable questions and occasionally get down modded as did one of my comments in this thread.

    --
    Don't settle for shampoo, demand real poo!

  • (Score: 1) by infodragon on Friday May 02 2014, @10:43AM

    by infodragon (3509) on Friday May 02 2014, @10:43AM (#38833)

    Sorry about posting again, I couldn't find a way to privately message you.

    You might be intreested in these two papers, I posted them to another commenter below.

    http://papers.ssrn.com/sol3/papers.cfm?abstract_id =2034858 [ssrn.com]
    http://www.stern.nyu.edu/cons/groups/content/docum ents/webasset/con_035928.pdf [nyu.edu]

    --
    Don't settle for shampoo, demand real poo!