Later On

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

Chicago Futures Market Creates “Guaranteed Winners and Guaranteed Losers

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Chicago Futures Market Creates “Guaranteed Winners and Guaranteed Losers”, by Pam Martens at Wall Street on Parade, which begins:

Remember the Senate hearing on June 18 when Senator Elizabeth Warren talked about the high frequency trading firm, Virtu, reporting in its IPO prospectus that it had been trading for 1,238 days and made money on 1,237 of those days. Last week three futures traders told a Federal court in Chicago that it’s not just the high frequency trading firms that are reaping a windfall but the exchanges who are engaged in a conspiracy with them to create “guaranteed winners and guaranteed losers.”

The original lawsuit was filed on April 11 against the CME Group and four of its officials in the U.S. District Court for the Northern District of Illinois. The CME Group owns the Chicago Mercantile Exchange (CME), the largest futures exchange in the world. Terrence (Terry) Duffy, the Executive Chairman and President of the CME Group, a man who has testified before Congress that his exchanges have nothing to do with the charges of rigged markets that are swirling about, is a named defendant in the suit.

Last week lawyers for the plaintiff traders filed a Memorandum of Law to ward off efforts by CME Group’s attorneys to have the case dismissed for lack of specificity. Citing a case known as U.S. v. Snow, the plaintiffs respond that “conspiracy by its very nature is a secretive operation, and it is a rare case where all aspects of a conspiracy can be laid bare in court with … precision.”) Notwithstanding that, many of the charges laid before this court have been quite detailed and named names, such as the following: . . .

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Written by LeisureGuy

7 November 2014 at 4:29 pm

Posted in Business, Law

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