There are no 'fake' bids. They may try to goose the market, but there's nothing fake about it. Most of the complaining is by traders so naive as to buy when size is showing on the bid, and vice-versa. That worked , oh, maybe in 1957.
How can anyone "control" index futures when the value of the contract is pegged to the Index? Even if he spends billions to sell down ES, if SPX shoots thru the roof...ES will follow after the sell down. No??
and theres the big SP to factor in too... if ES gets more than a tick or two out of line with the SP, all the arbitrage traders will be buying one market and selling the other because as long as there is a discrepancy of 1tick+ there exists a no risk guaranteed profit for arbing between the two markets - arb volume quickly pulls everything back into line. There are traders who just sit in the S&P pit waiting for arb opportunities. "Manipulation" & so called spoofing is just a convenient target for losing traders to blame. Adapt or die.
In the SEC affair there is only one account, secondly yes it's about creating a fictitious market : that's what the french market admitted to have done during the bubble and they interestingly took as pretext in front of the judge who investigated that other markets (they explicitly nominated the Nasdaq Market) were doing the same thing. In Europe the people are completely ignorant so the market officials can nearly do what they want. In US there is a law about conspiracy which needs at least 2 persons to be qualified as conspiracy. That's why maybe only one account is shown. And the market officials can use it as a front to do what they would want to do and what they did indeed during the last bubble according to what has been revealed in France investigation. But because it has been revealed already I suppose they don't want to expose themselves again.
Yes but when they do fictitious trade themselves - and there is no doubt about that since they had to recognise it in front of the judge and if you don't believe it I have given reference to the reputable financial media La Tribune owned by LVMH - do you think that they will do something about themselves hahaha ! And what people would think if one day the SEC has to fusion with the Exchange and controled by the Exchange ? You would say it would like fusionning the Judge and the Thief. Well they have coped to propose that in France also too funny ! The Maffia also have strong rules but only when it comes to defend their own interests...
So I have given reference to the facts reported by the medias. If you want to continue to blindly believe in fairy tale it's not my problem but yours so I have finished with this thread Those who need legal proofs for their advocates can use these papers since there has been a legal inquiry.
Once again, a wash trade is to set up a fictious market and is typically done in very illiquid issues in order to peg a price. Typically, someone is wanting to peg a price of an underlying in order for the derivative exposure to not be issued a margin call. The issue does not trade much, so the price can be "marked" with as little 100 shares or 1 contract. The other reason for "washing" trades is to either create the illusion of an active market or to hid losses/gains for tax reasons. There is no way this going on in the SPs
i have heard rumors that there are programs now being used that will cancel a working order after 1 mini prints at that price. if they want to play that game then let em...you just have to realize that you can no longer lean on that order. times are a changin at a rapid pace and you just have to adapt. i remember when you could only put in 30 minis at time on globex. the minis were so thin then you couldnt even get a 20 lot of bigs (100 minis) off without spooking the market....the locals were, and probably still are glued to that mini quote board. someone said earlier that if you think that bid for 1200 is B.S. then cram em down there throat and see how that goes. i think that is right on! i have never heard of a petition of this type on the floor and Im in constant contact with alot of locals on the floor including a clerk thats in my ear ALL day quoting the bigs. dont worry about B.S. orders...they will get what they deserve...or the money they make. wash sells are a separate problem all together....and they are illegal. ill repost if i hear anyting "petition" realted. this would be interesting. now get in there and TRADE! jim