Courtesy of Pam Martens.
Until March 30, 2014, most Americans and even long-term veterans on Wall Street had no idea how the electrical plumbing responsible for transacting buy and sell orders at stock exchanges and other trading platforms actually worked. That all changed on March 30 when author Michael Lewis went on 60 Minutes and told its 12 million viewers that “The United States stock market, the most iconic market in global capitalism is rigged.”
Lewis was promoting his new book, Flash Boys, which detailed in language the public could easily understand, (devoid of the intentionally cryptic acronyms used across Wall Street) how the stock exchanges, mega Wall Street banks and high frequency traders were conspiring through technology to front run orders from unknowing investors.
In the 60 Minutes interview with Steve Kroft, Lewis drilled down to how the legalized theft had escaped the notice of so many market watchers: “If it’s so complicated you can’t understand it, then you can’t question it,” said Lewis.
At first, the Securities and Exchange Commission denied that the markets were “rigged” and simply tried to ride out the public uproar. Then it decided to create an Equity Market Structure Advisory Committee, effectively bringing together in one room the Wall Street people involved in the mad-scientist technology and market rigging devices to hash it out in a public venue.
The Committee most recently held a meeting on October 27, where slurs, barbs and accusations were thrown at opposing sides by meticulously tailored men using their most polite voices.
Jamil Nazarali, Head of Citadel Execution Services
…
