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?