Wall Street is bracing for major changes from a new rule that would overhaul how the banking industry conducts its trading. ------------------------------------------------------------------------------ Bye Bye Volume...hello VOLATILITY!!!! Could be a great trading market for the HFTers and death to Retail!!!!!
The rule is just prop trading has to be separated from the bank and no ownership of hedge funds. So, banks will spin off trading operations is all.
Here is one link: http://dealbook.nytimes.com/2011/10/11/banking-industry-revamp-moves-step-closer-to-law/ I guess it is just the Volcker Rule finally in effect. I assume this is the reason that GS & MS want to stop being regulated by the FDIC. http://www.cnbc.com/id/44875711
Damn, they flip-flop. GS, MS became banks in 2008 to be saved by the govt. Now they want to dump it so they can be gunslingers again. No wonder the Occupy Wall Street people are so pissed.
I actually agree with the OWS folks' main issue -- mainly that we need to end this Plutocracy created in the last 12+ years. But obviously I'm not a Socialist or Marxist which seems to be the leanings of a lot of the OWS backers. Its obviously a joke that you could take cover under the taxpayers when you are about to go under and then decide you don't want to be regulated. Privatize the gains & let the taxpayers take the losses. This is the core philosophy of any Plutocracy. Really the regulators should just bring back Glass-Steagall. That would fix 99% of the problems created in 2004-2007.
Mary Schapiro is going to show all the naysayers how HFT adds liquidity to a market - in her next job as CEO of hftBay.