Goldman Sachs Trading Unit.....Interesting Developing Story

http://www.ritholtz.com/blog/2009/07/is-goldman-stealing-100-million-per-trading-day/
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Article....


Is Goldman stealing $100 million per day ?



“That Goldman Sachs may just possibly have used security access codes and built a system to acquire trading information PRIOR to transaction commit time points at NYSE.

The profitability of this split-second information advantage would have been and could have been extraordinary. Observed yielding profits at $100,000,000 a day. [summary to address complaints with respect to complexity.]

GS has special access inside the system from its status assisting the Working Group on Financial Markets (colloquially the Plunge Protection Team) created by Presidential Order two decades ago. GC also acts as Special Liquidity Provider for NYSE.

With 60% dominance of NYSE program trading, what’s good for Goldman defines what shows as overall market performance.”
 
Yeah, but think about it. The programmer doing this work, as well as the traders, would be liable themselves for breaking the law. So you are telling me that GS looks the other way when a programmer/trader exploits this? There are lots of eyes on these things internally. No disgruntled employees that felt betrayed by GS and never went public with the information? No employees that went to work elsewhere that implement the same strategy? No programmers in those places that felt they were doing something illegal? No officials at the NYSE that looked into it?

"You can fool some of the people all of the time, and all of the people some of the time, but you can't fool all of the people all of the time."

It doesn't ring true.


Quote from libertad:

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You never know.....


Frontrunning ....always tempting.....

http://www.lawyershop.com/practice-...curities-fraud/lawsuits/knight-trading-group/

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There is a political world....

There is a media world.....

There is the REAL world....


Who knows....
More...
 
Quote from nitro:

Yeah, but think about it. The programmer doing this work, as well as the traders, would be liable themselves for breaking the law. So you are telling me that GS looks the other way when a programmer/trader exploits this?

It doesn't ring true.
More...

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Media world ....for sure eh ?


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My personal wish is that GS, MS, and the rest flood the stock exchange with new names to trade....particularly China, etc....
while streamlining the exchanges themselves....They are the ones to do it....

It seems that some business conflicts could be improved upon regarding business structure....

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The fact remains....neither you ....nor I know....
 
If Goldman was getting a priority data feed, my guess is that the NYSE and USG knew about it and that it was for PPT market manipulation purposes.
 
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