Goldman Sachs Tells SEC Dark Pools, Short Sales Help Cut Costs

Discussion in 'Wall St. News' started by ASusilovic, Oct 27, 2009.

  1. Oct. 27 (Bloomberg) -- Goldman Sachs Group Inc., the most profitable securities firm, defended for U.S. regulators dark pools, short-selling, high-frequency trading and other market practices that have been criticized by lawmakers.

    Goldman told the Securities and Exchange Commission that computer-driven trading and an increase in stock transactions that occur off public exchanges has reduced consumer costs, increased competition and brought more liquidity to markets.

    “The investing community (especially retail) has benefited from the evolving market structure and industry competition,” Goldman Sachs said in a summary of the 55-page report submitted to the agency.

    The SEC is under pressure from lawmakers such as Democratic U.S. Senators Charles Schumer and Ted Kaufman to rein in some of the fastest-growing segments of U.S. markets. Kaufman in August asked the commission to review seven practices including high- frequency trading, saying investor confidence may be eroded.

    Executives from New York-based Goldman met with staff for Commissioner Luis Aguilar last month and sent a copy of the report, according to an Oct. 22 notice on the SEC’s Web site.

    Trading on dark pools, off-exchange platforms that don’t display public quotes, has more than quadrupled to 9.4 percent of all U.S. equity volume in the past three years, according to Tabb Group LLC. High-frequency traders, whose computer programs buy and sell shares up to 1,000 times faster than the blink of an eye, account for about 46 percent of daily volume.

    Goldman, which operates the Sigma X dark pool, in the document identified five “myths” associated with the platforms. The bank said it’s a misconception that dark pools create a “two-tiered market structure” to the detriment of retail investors and that platforms that don’t publicly display orders are a new phenomenon.

    SEC Proposals

    The SEC proposed rules Oct. 21 that would require dark pools to publicly report some bids once they handle 0.25 percent of a stock’s average daily volume. The electronic networks usually shut down trading in a security when they approach the existing 5 percent limit.

    Goldman, in its report, said “small changes and clarifications” could benefit current rules regulating dark pools. The Goldman executives who met with Aguilar’s staff Sept. 24 included Managing Directors Paul Russo, William Conley and C. Annette Kelton, according to the notice.

    http://www.bloomberg.com/apps/news?pid=20601087&sid=ax4InQgscKws

    Hum, who has been appointed COO of SEC lately ?:D :D :D
     
  2. achilles28

    achilles28

    What a joke. A 29 year-old, EX GOLDMAN vp, gets appointed as COO of the SEC.

    This is all the proof anyone needs.

    Fox Guarding the Hen House.

    You know, Government "Regulators" are a creation of Big Business. To protect the Goldmans of the World while beating up on their weaker competition.

    http://www.businessinsider.com/foun...goldman-guy-who-is-now-coo-of-the-sec-2009-10
     
  3. .............................................................................

    Ok....here is the real issue....

    What if anything is going to change the current state of affairs ?

    Who is going to "change it " ?

    And if changed....Is the solution better ?

    .....................................................................

    If one wants to see labor shortages and an unmatched
    robust economy....

    Two items....

    1) 10/5 Ctax only....no other taxes.....


    2) Singular de-fragmented first come first served all electronic
    direct access securities exchange....electronically regulated and monitored....all in the open....all price discovery occurs on the exchange....no taxes of any kind....


    Done
     
  4. achilles28

    achilles28

    I agree on both points.

    Also, I say end the Fed.

    Our ability to print money is THE reason why Corporations buy Politicians.

    If Government spending is strictly limited to whats collected via taxes, Congress has no more blank checks to rubberstamp! The money is already accounted for. And under a hard money system, simply printing "more" is impossible.

    Please add monetary reform to the list :)
     
  5. Goldman Sachs is a threat to the United States, just as when Paulson held a gun to the head of Bush and Congress and demanded ransom money for Goldman Sachs/J.P. Morgan (while carpet bombing Lehman and Bear), under the trumped up charge that the economy would immediately enter a depression without a taxpayer raping.

    And yes, having a 29 yo ex exec of Goldman as head of the SEC only confirms the fundamental truth that Goldman goes out of its way to corrupt any institution having jurisdiction over Goldman's nefarious activities.
     
  6. ..........................................

    Exactly.....for money to have "value"....

    It must be "scarce"....not "ready made"....
     
  7. ..........................................................

    The real question being....

    What can be done about it ....?

    Who/what is going to do it ....?
     
  8. the1

    the1

    +1
     
  9. the1

    the1

    The only way to fix the problem is for the citizens of the US to unite, which isn't something that can be planned or coordinated. It's something that happens on its own. No one drew up a formal game plan for the Revolutionary War. It was based on a series of events that pushed the population over the edge. We're not even close to that in the US. If you want to see how much people will take just look at England. What's happening in this country has already happened in England and most of their population applauds what their government does and they drool at the site of the King or Queen. We have a long way to go and the path will get much darker.

     
  10. achilles28

    achilles28

    I think the only solution is a massive, grassroots campaign to Take Back Government.

    I don't mean call, write and plead with career Politicians to be nice and "play fair".

    I mean Run TOTAL OUTSIDERS against these schmucks for every office in every county, State and Federal Election. Any American that's a die-hard supporter of the Constitution first and foremost! honest, of decent intellect, and gainfully employed FINE. Doesn't matter who. The plumber, the dog catcher, the local grocery store owner. DOESN'T MATTER.

    We need to flush the Chris Dodds, Barney Franks, McCains and Boeners down the toilet.

    The only way we get change is when more Ron Pauls, Jesse Venturas, Peter Schiffs and Rand Pauls run for office.

    That's our Bloodless, Peaceful Revolution, right there.

    Problem solved.
     
    #10     Oct 27, 2009