This is the most amazing thing, to quote Tyler at Zero Hedge ”essentially no institutional or retail clients are trading any more, it is just a few desperate computers trying to front run each other.” – Ilene
Goldman Sachs Principal Transactions Update: Collapse In Agency Program Trading Volume
As for today’s market close, with a literally parabolic jump in the last minute of trading, if anyone still thinks this market trades based on anything resembling normal behavior (unless someone had a very Jerome Kerviel-esque fat delta hedging finger or one/two moderate/large quants who had a huge index hedge imploded), I have some BBB+ rated CMBS to sell to you at par. One culprit could be hiding in the huge drop of agency trading, which this week dropped to a several month low of 1.875 billion shares.
Is there ever going to be any transparency in this market again?
Sign the Fed Transparency Petition HR1207 here.