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Reply #11: You know what is missing from that segment? This: [View All]

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Subdivisions Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-16-09 10:23 AM
Response to Reply #9
11. You know what is missing from that segment? This:
Goldman Sachs is engaged in http://en.wikipedia.org/wiki/Algorithmic_trading#Market_making_and_high_frequency_trading">high-frequency trading (HFT). Some critics charge that the practice of HFT tips the level of the playing field in favor of Goldman Sachs and others who employ an HFT strategy.

According to Senator Edward Kaufman (D - Del.), who http://www.realclearmarkets.com/articles/2009/07/31/a_level_playing_field_for_investors_97337.html">sent a letter to the SEC in which he stated:



Regrettably, we now have an unfair playing field for investors. This leaves us with, in effect, two financial markets: one for powerful insiders, who use high-speed computers and privileged access to information to exploit loopholes for profit, and another for the average investor, who must play by the rules and whose orders are filled almost as an afterthought. This situation simply cannot continue. It is the financial equivalent of 'separate and unequal.'



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