http://www.forbes.com/2008/02/06/cr...-oped-cz_rl_0207croesus.html?partner=yahootix Didnât they blame them for LOW volty ( by arbing every 5c and keeping the price steady) just an year ago ?
These guys write this stuff to fit their story, not necessarily the facts. Let me give you an example from the linked article: "...Take Tuesday, Jan. 22, when the Dow opened down 463 points, or 7%, in the wake of plummeting stock prices in Asia and Europe. What looked to be a frightening rout was transformed suddenly and without the slightest advance warning into a huge rally as hundreds upon hundreds of gigantic buy orders, all 1 million shares or more in size, poured into Credit Suisse's electronic trading system..." All futures were down far harder in the overnight session than where they opened, in fact, they were locked limit down. That was where the real money was made. The SEC is investigating if there was insider trading in this case by institutions like USB or its clients. USB was one of the institutions that was in theory a counter party to the rogue trader fictional trades in the book. The french bank was in contact with institutions like USB inquiring on these trades. So USB may have had inside information that was not available to the public that something was wrong, and may have acted on that information, or some of its clients got drift of that information. Once they got drift that the bank was forced to liquidate the rogue traders position, USB knew that there was no real underlying reason for markets to implode, and that prices would quickly rise. Most of these people that are just media reporters don't know what they are talking about. nitro
IV trade; Cool article.Most probably all the early buy orders,onJan22[after King day], cut volty, not increased it. Measured close to close anyway; so seems to contradict his theory,including comparison to other markets on King day.
Right. It's because of "Mayer's Law" (a corollary to Murphy's Law)... "Whenever theory is not supported by the facts, they will be disregarded."