Former SEC Director Admits The Truth: The Market Is Rigged

Submitted by Tyler Durden on 03/10/2015 19:00 -0400

For more than a decade, John Ramsay kept his mouth shut about how rigged the US equity market was.

As SEC Director of Trading & Markets, Ramsay tells Bloomberg he "had red tape over his mouth," but now he is "uncorked."

“I’ve been able to find my voice on these issues in a way I couldn’t have done when I was in the government, because you’re always limited by internal politics and not wanting to get too far out in front of the agency,” he said. “I feel like I’ve been a little bit uncorked.”

Having joined Brad Katayama's IEX Group (infamous for the Flash Boys' exposure), Ramsay is calling out the “convoluted” and "illogical" pricing rules of major stock exchanges and compared the $25 trillion U.S. stock market’s structure to the Death Star of "Star Wars."….

“The current market ecosystem is not sustainable, and significant changes are coming one way or another,” Ramsay said in a speech delivered at a New York technology conference in September.

Ramsay said his opinions grew more critical in recent years as he watched the market fragment into 11 public exchanges and more than 40 less-regulated private venues such as dark pools.

Trading became more complex and prone to technological malfunctions in the face of rules that were supposed to boost competition and create new choices for investors, he said.

He outlined how the market lost its way: conflicts of interest among brokers, a two-tier system favoring the speediest and a general sense that today’s rules have been crafted to the benefit of insiders.

The full article is referred to me in my blog and can be read at http://www.zerohedge.com/news/2015-03-10/former-sec-director-admits-truth-market-rigged

What is so important about this article?

In short, John Ramsay admitted that the New York SEC is running a rigged stock exchange trading system. It means that the management of New York SEC is committing a crime against the people for operating a rigged trading system. It means that the regulators of the New York SEC also knew and are accomplices to this crime.
When the people that are responsible to maintain law are breaking the law to cheat the masses, can you beat that? They knew and they did nothing, not even want to talk about it until they left the govt? And those remaining in the govt continue to live with and promote the rigged system.

Should these people be prosecuted in the American courts of law?

Now, that is an American problem for the Americans to solve. The big question, is our SGX operating the same rigged system? Ok, here I must vouch to say the right thing, that the SGX would not commit itself to a rigged system as they know that it is criminal. Our honest and highly ethical officials would not commit such crimes against the people. They know that they would be prosecuted if they dare to.

But I would like the SGX and MAS to review the trading system to double and triple check that our system is indeed free from riggings like the New York SEC. It must be that way. And should they find anything fishy, suspicious, they must take all efforts to remove them or they could be found equally guilty for not doing anything one day.

We have trust in our govt, administrators and regulators not to do the darn things the New York SEC is doing, not to approve the operation of a rigged system. If they cannot tell whether our system is rigged without their knowledge or understanding, if they don’t know like the toxic notes and bonds, they should call in people like John Ramsay and Paul Volcker to give their expert opinions to clear any doubts about our system.

There is no harm inviting such righteous and knowledgeable people who know the thieves and what the thieves are doing to review our system. It would be money well spent.

What do you think?


Anonymous said...

These two people that you want to invite comes from America. I'm ok with America but RB doesn't trust America. In your opinion how do you know these two are righteous and knowledgeable?

If I tell PAP to pay a ransom to invite these two people to audit the SGX and our financial system, is it money well spent ? I ask you, is it money well spent? Because scully PAP really pay them come, you will say why invite these two people come, right?

You will say, invite those from China better right?

Anonymous said...

In short, John Ramsay admitted that the New York SEC is running a rigged stock exchange trading system.

So? But the Sing dollar still depreciates vs US dollar, tio bo? Sinkieland still spend money to buy American weapons and host the US Asia Pacific Naval fleet what. And also agreed to President Obama request to use our SAF to help fight the ISIS in the Middle East what.

Anonymous said...

Anon 9:24, what cock are you talking? You are making all kinds of wild allegations and assumptions about RB and his suggestions. You got brain or no brain?

Why don't you say if the govt invite these two guys here, they will want to sleep with your mother as a pre condition?

Anonymous said...

Please don't insult these two gentlemen. They have better taste than that.

Anonymous said...

I know nothing about trading of stocks.

But one thing I know is that stock exchanges are all the same, they are BIG casinos, like our 2 casinos at the IRs.

At the casinos, you are GAMBLERS.

At the stock exchanges, you are INVESTORS.

Like tortoise and turtle.


Matilah_Singapura said...

American con men are the best in the world.

Most people, when they get conned by an American grifter, usually take it with a smile:

"Oh well, they got me good!", then shrug it off, and some even give the charltans a little respect for the high degree of "craftsmanship".

Consider these 2 examples out of countless possibilities which can be proven empirically:

1. G W Bush conned the entire world to form a "coalition of the willing" to hantam Iraq because it was hiding planet-threatenting "weapons of mass destruction".

2. The US Fed can print up as much USD's as wanted or needed, and the world accepts this as "reserve currency"

US con artists have endearing qualities. They are entertaining. They are warm and friendly.When they are successful, Hollywood makes movies based on their lives for e.g. "Catch Me If You Can" & "Wolf Of Wall Street".

They have style, they have game.

How to resist?

Anonymous said...

You can't cheat an honest man.
WC Fields

Matilah_Singapura said...



Chua Chin Leng aka redbean said...

They even print US$1m notes. I have a copy, certified genuine but not legal tender.

Anonymous said...

No country can bring down the USA except the Americans themselves. Today they are indulging in all kinds of crimes at the highest level and thinking they can get away with it.

They could when their supremacy was unchallenged and when they was no alternative models.

Today their military supremacy is being challenged and there are other alternatives. When the American financial system collapses, they can't pick up the pieces anymore. The rest of the world will move on.

Anonymous said...

RB 10.37 am

Then you shouldn't have anything to do with the American system, and that answers the question should you invite Volker and the Ramsay guy.

I was thinking, might as well just invite the China guy come? Like that, you can solve the problems perpetually and not having the two American guys come first and then regret later that you should invited China guy because, as you know, we are Chinese and we should trust the Chinese, right?

Tio bo?

Chua Chin Leng aka redbean said...

Your thinking or your attempt to distort what I am saying, to be polite, is being simplistic or naive.

The USA and PRC arew not two individuals but hundreds of millions or billions of people. The govt may be shit, but there are many good Americans around, and this applies to China or any other countries, even Singapore. Maybe this is too difficult for you to grasp or you are pretending to be daft.

Even with the PAP leadership, there are good and bad individuals and assholes. Their policies, sometimes good and some bad too.

Please don't try to talk like stupid IBs. You might as well say everyone with a moustache is your father cause your father wears a moustache.

Anonymous said...

I think Anon 12.03 pm has written it in a tongue-in-cheek metaphor way to highlight the similarity between his way of writing and your way of writing, i.e, simplistic, distorted and naïve, as what you rightly said. In my humble opinion, more often than not, you have written articles strongly slanted and devoid of a balanced argument that it comes as no surprise that he has written that way too in his response to your article.

Anonymous said...

Anon 3:25,

I think you are a silly admirer of RB's simplistic, distorted and naive and strongly slanted and devoid of a balanced argument articles.

Only stupid people like you who know that something is stupid and keep coming back for more.

Come on, kick yourself in the ass and admit it and say you will come back for more to prove how stupid you are.

Anonymous said...

Yes, yes anon 3:25,

Say 'I am not stupid' 100 times and follow by 'I will not come here anymore because I am not stupid' 1000 times.

If you are back again, then it is obvious you are so stupid to the point of beyond redemption.

Anonymous said...

Wah seh RB, your permanent resident IB still around to pester you?

Yo, you still around?

Testing to see if he will answer and admit his stupidity.

Anonymous said...

China is the country and the Chinese people are her citizens.