Posts Tagged ‘Goldman’s SIGMA X Dark Pool’

Credit Suisse's Dan Mathisson Doesn't Use Flashed Orders Except When He Does

Courtesy of Tyler Durden

A new article by Traders Magazine goes on to describe in exquisite detail how brokerages apparently have not only never used Flashed orders, but run like the plague any time the topic is even breached.

Quote Greg Tusar, head of U.S. electronic transaction at GSEC:

"We don’t use them in the execution of client orders," Tusar said. "But we believe it should be a matter of choice--that clients should have access to them if they choose to. They should be available on an opt-in basis, client by client."

Greg, while we have your attention, can you also elaborate on this little disclosure taken directly from your March 31, 2008 Street Smart Research Piece:

Sigma X

Not to make a fine point out of it, but isn’t it a little presumptuous to say you don’t Flash when your entire Sigma X Dark Pool is based on Flashing (granted Goldman is the only beneficiary of the Flashed order data)? If we are not understanding this correctly, please feel free to enlighten us on how we may have misunderstood this: SigmaX@zerohedge.com

Other professionals who chime in include none other than Jatin Suryawanshi, head of global quant strategies at Jefferies & Company:

"Flash orders have the potential to cause information leakage. It’s information that was not available on a data feed that’s now available on a data feed." He added that the use of flash orders, if it’s not done purposefully to aggressively take liquidity, may fly in the face of a broker’s best-execution duties.

Well, at least one insider is happy to acknowledge the potential abuse of Flash. Uhm, why did it take all you guys years before coming forward with this knowledge? Does some blog have to disclose all your dirty laundry before you admit that a vast majority of your business models are based on "information leakage?" But then again Jatin’s honesty may be attributed to his recent distraction, stemming from the escalating lawsuit with UBS alleging serious quant espionage. And here we were thinking that only Sergey Aleynikov is in trouble.

Which bring us to Dan Mathisson, head of Advanced Execution Services at Credit Suisse.

"We don’t flash," said Dan Mathisson, head of the Advanced Execution Services group at Credit Suisse. "The whole reason we exist is to try to execute [institutional


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Letter To Senator Charles Schumer – Ban Goldman’s SIGMA X Dark Pool

Letter To Senator Charles Schumer – Ban Goldman’s SIGMA X Dark Pool

Courtesy of Tyler Durden

Dear Senator Schumer,

You recently approached SEC head Mary Schapiro with some very valid concerns about Flash trading, and the potential for investor abuse by advance looks to select market participants ahead of the general order pool. Your crusade was subsequently enjoined by such equity market luminaries as Robert Greifeld, president and CEO of the Nasdaq Stock Market, who had this to say regarding not just Flash trades in particular, but numerous other components of market topology, whose sole purpose is to obfuscate natural order flow and to provide loopholes for dominant market players to extract inefficiencies (i.e., scalp regular investors) arising from established and SEC-endorsed mechanisms of efficient market circumvention:

"Flash orders, which are a fundamental part of high-frequency trading, are but one symptom of the current evolving market structure. Nasdaq OMX is concerned that the securities industry appears willing to accept more and more ‘darkness’ and limits on the availability of order information. Instead, the policy goal should be clear: to eliminate any order types or market structure policies that do not contribute to public price formation and market transparency.”

"The industry has a unique opportunity at this time to take a hard look at dark order types and the underlying market structure issues that do not support public price information.”

Senator Schumer, while Zero Hedge applauds your initiative, the truth is that the wrongdoing in the context of potential investor market abuse runs far deeper and is much more pervasive than you realize. And while one can highlight the merits of the Op-Ed published in the New York Times earlier by quant titan Paul Wilmott entitled "Hurrying Into The Next Panic" (a recommended read for you and your staff), which notes numerous frightening implications brought about by the domination of Hiqh Frequency Trading, let us stick within the context of advance looks, which is at the basis of your letter seeking the ban of Flash-like behavior.

Zero Hedge would like to highlight that while your letter to Mary Schapiro indicated your concern with such market actors as DirectEdge, BATS and Nasdaq, the truth is there are substantially larger and more dangerous "fish" on which you should focus your attention.

As a primary example, I would like to refer you…
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Zero Hedge

Video: Inside America's Deadly Opioid Crisis

 

Video: Inside America's Deadly Opioid Crisis

Courtesy of Zero Hedge

Opioids kill more people than they cure. Every day in the United States, some 140 people die from taking opioids - addictive opiate-based drugs. They’ve become the leading cause of death among the under-50s, ahead of road accidents and firearms. France24's US correspondents, Valérie Defert, Baptiste Fenwick, Hayde Fitzpatrick and Romain Jany, take a look at the deadly opioid crisis.

Opioids are neither viruses nor bacteria, but painkillers. In ...



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ValueWalk

"Understanding Systemic Risk in Global Financial Markets"

By joniferdingcong. Originally published at ValueWalk.

About the Subject
Systemic risk is the risk that developments in the financial system will disrupt financial stability and the economy. While systemic risk has been a central concern since the Credit Crisis of 2007–2009, the history of finance shows that financial crises occur frequently and threats to financial stability are constant, requiring careful monitoring and management of systemic risk. In Understanding Systemic Risk in Global Financial Markets, Aron Gottesman and Michael Leibrock discuss the core principles and dynamics of systemic risk, as well as a real-world approach to managing it.

]]> Get The Full Seth Klarman Series in PDF

Get the entire 10-part series on Seth Klarman in PDF. Save it to your desktop, read ...



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Phil's Favorites

'Dreamers' could give US economy - and even American workers - a boost

 

'Dreamers' could give US economy – and even American workers – a boost

Courtesy of Amy HsinCity University of New York

Demonstrators chant slogans during an immigration rally in support of DACA. AP Photo/Jose Luis Magana

Earlier this month, hopes were high that a bipartisan deal could be reached to resolve the fate of the “Dreamers,” the millions of undocumented youth who were brought to the U.S. as children.

Those hopes ...



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Insider Scoop

Wall Street Previews Netflix's Q4 Earnings: Rising Subscriber Numbers Drive Bullish Projections

Courtesy of Benzinga.

Related NFLX Needham's Laura Martin: Amazon Prime Price Increase Won't Affect Netflix, Roku Upcoming Netflix Earnings:...

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Digital Currencies

Bitcoin and cryptocurrencies are just the Beanie Babies of the moment

 

Bitcoin and cryptocurrencies are just the Beanie Babies of the moment

Courtesy of Vitaliy Katsenelson, Contrarian Edge

If you invested in the markets circa 1999, it is hard to observe the Bitcoin mania and not experience the feeling that you’ve seen this movie before and know how it will end – in losses and tears. The internet was a great idea that convinced a lot of great minds to invest capital and energy into businesses that have transformed the world – Amazon, eBay, Cisco, PayPal … the list is very long (though in fairness the list of non-survivors is even longer – but they are not here to remind us of their nonexistence).

R...



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Chart School

Short Covering Driving Gains in Semiconductors and Nasdaq 100

Courtesy of Declan.

The Nasdaq 100 breakout cleared channel resistance, the fifth significant breakout in four months. All technicals are posting new near-term highs which also meant the short generated on the tag of the rising channel is negated.


The Semiconductor Index also enjoyed a substantial breakout as short covering drove traders out of their positions. Technicals see an improvement with a relative gain against the Nasdaq 100.

...

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Biotech

How Alzheimer's disease spreads throughout the brain - new study

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

How Alzheimer's disease spreads throughout the brain – new study

Courtesy of Thomas E CopeUniversity of Cambridge

Harmful tau protein spreads through networks. Author provided

Alzheimer’s disease is a devastating brain illness that affects an estimated 47m people worldwide. It is the most common cause of dementia in the Western world. Despite this, there are currently no treatments that are effective in curing Alzheimer’s disease or preventing its relentless progressio...



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Mapping The Market

Trump Admin Bans CDC From Using Words Like 'Science-Based,' 'Diversity'

By Jean-Luc

These are the policies of a theocracy, not a modern democracy:

Trump Admin Bans CDC From Using Words Like ‘Science-Based,’ ‘Diversity’

The Trump administration has prohibited the Centers for Disease Control and Prevention (CDC) from using words like “science-based,” “diversity,” and “transgender” in their official documents for next year’s budget, according to the Washington Post.

Senior CDC budget leader Alison Kelly met with the agency’s policy analysts on Thursday to announce ...



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Members' Corner

An Interview with David Brin

Our guest David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on a range of topics including national defense, creativity, and space exploration. He is also a well-known and influential futurist (one of four “World's Best Futurists,” according to The Urban Developer), and it is his ideas on the future, specifically the future of civilization, that I hope to learn about here.   

Ilene: David, you base many of your predictions of the future on a theory of historica...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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All About Trends

Mid-Day Update

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Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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