SEC official: Markets aren't fair for the 'little guy'
Dan Gallagher says he thinks his agency will examine how it handles ultra-fast computerized trading.
During an interview on CNBC's "Squawk Box," Gallagher said he feels the SEC should review how it handles high-frequency trading some time this year.
The practice, in which investment firms use algorithms and powerful computers to automate trades in milliseconds, has come under scrutiny because critics say it creates unfair advantages over investors without super-fast processors.
"The problem with high-frequency trading right now is that there's a perception that for the little guy, the markets aren't fair," Gallagher said. "That perception to me is a reality. It's something we need to address."
Gallagher, an SEC commissioner since 2011, told CNBC he believes the regulatory agency will examine how it handles high-frequency trading this year.
"It's just gotten too automated," Gallagher said. "It's gotten automated because of our own rules. It's time that we do this."
His comments come a week after New York State Attorney General Eric Schneiderman announced he would open a probe into computer-driven trading. On Thursday, Nasdaq-OMX CEO Robert Greifeld said that an outright ban on high-frequency trading was unlikely.
—Reuters contributed to this report.
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There is no more 'little guy'. Probably, 75 percent of the money is in huge
pools, driven by a handful of fanatics and their computer programs.
Why should the retail investor think its wise or safe to return that playing field?
Then the same people call there profits carried interest and pay a smaller rate than actual working folks and their investments.
They crashed the economy. They forced people out of their homes, then came in bought up the distressed properties a basement prices, to rent peoples house back to them.
The tide will turn. Lets return to Eisenhower's tax rates.
Hey, remember the days you actually had to pick up the phone and call your broker to do a trade and the commission was anything from $25 to $75 on the transaction? Raise your hand.
The world isn't fair, and it is futile to try to make it that way.
The more regulations you create, the bigger the advantage shifts to the big guy since they have the money to invest in searching for loopholes.
Remember those billion and trillion dollar bank bail outs? The one where the incompetent and down right crooked were rescued by tax payers? Tell me, if the same money, those billions and trillions, had been divided up equally between ALL the tax payers on the country....with the stipulation that if you had miss managed your money, or miss judged your ability to repay things, or were just plain stupid, you know, like those moguls, and gotten behind on your house or car or credit card payments,
that you HAD to pay back the loans to the banks. Wouldn't THAT program have bailed out the banks? i mean all those loans would have been paid back right? So, along with the banks, ALL the people would have been bailed out too instead of being left not only still behind on all the payments but now on the hook as tax payers ultimately responsible for the government debt too.
Oh, and for the people, well, like myself and probably most of you, who never were behind, or even in debt... well, they could've stipulated that we at least buy a new car or spend some of the money as a STIMULUS to the economy. sounds like a better plan than cash for clunkers which moved people out of their paid for clunkers into debt for a not needed new car.
No way the heck we can compete. That's why I have to buy and hold for a long time horizon.
At least 160.45 milliseconds...
It's not fair - lol,
My kids say that 100 or more times a day. I tell them that's right, so when you grow up you have to elect democrats because they will make life fair.
The “Little Guy” can still do quite well investing in the market. The big guys do have an advantage when it comes to trading, but “little guys” shouldn’t be trading anyways, they should be investing.
I'm just going to guess, that the SEC will talk this to death for a few years....
Giving lip service to the masses, until we shut up...And trading will go on as usual..
Nothing less than 5 second trades period....!!! What ever that really means..?
No instant pump and dump....
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