Later On

A blog written for those whose interests more or less match mine.

Strange effort to reduce transparency on NYSE

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This is odd. Matt Taibbi writes:

In a move set to infuriate and send many Zero Hedge readers over the top, the NYSE has taken action to make sure that nobody will henceforth be able to keep track of the complete dominance that Goldman Sachs exerts over the New York Stock Exchange. This basically ends our weekly Program Trading updates disclosed every Thursday indicating that Goldman has singlehandedly captured all of NYSE’s program trading.

via Zero Hedge: NYSE Halts Transparency, Feels Goldman Program Trading Disclosure Is Unnecessary.

I’m sorry I didn’t post this earlier, but I urge readers to go over to Zero Hedge and check out this post about the NYSE’s recent decision to change its procedures… to protect Goldman Sachs from bloggers like Zero Hedge!

This is complicated stuff (for people with no financial background, like me, it’s nightmarish) and I have a longer thing about this coming out later. But the essence of this story is that Tyler Durden over at Zero Hedge has, for months, been complaining that Goldman has been manipulating the NYSE, in particular manipulating program trading in somewhat the same way (although perhaps not to the same extent) that they manipulated the commodities markets. In order to make his case — and his theory has gained a lot of acceptance, to the point where Goldman had to respond to the allegations publicly — he has been analyzing data the NYSE releases on program trading every week.

So what happened this week? The NYSE announced that it will no longer be releasing its weekly program trading data. This is quite obviously a move designed to make it even more impossible to track what’s going on in the NYSE and shield, in particular, Goldman Sachs. Let’s hope there’s a public uproar about this; Zero Hedge posted contact info for NYSE officials, and has urged readers to petition the exchange to restore the old rules in the name of transparency.

Written by LeisureGuy

4 July 2009 at 9:40 am

Posted in Business

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