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ZERO TOLERANCE

Recent fines and admissions from regulators in many markets from commodities to currencies has proved that market abuse is sadly rife in our exchanges . I have been brave enough over the last decade to question the relevant authorities that the need for speed has provided a mask for mass market abuse . The same discussion occurred with both with Athletics and more recently cycling  ; our so  called heroes were in fact frauds ; Johnson ; Flo-jo ,Gatlin  and Lance Armstrong .The question being offered was simply that their records were unreal ; Flo -jo's 200 metre record in 1988 =21.34  being totally assisted by drugs .  In financial markets we witness Virtu financial accounts of ONE losing day in 6 years !  (2191 winning days !) This is  I believe only achieved illegally or with help from exchanges ; who waived several trading rules ?  The remedy is simple and can be implemented immediately BUT markets would suffer volume and liquidity ; just as athletics and cycling have suffered not breaking these false records ! 

 We therefore can carry on allowing all forms of trading ;obviously the exchanges choice as provides best profit for share holders ; OR we decide on ZERO TOLERANCE ; painful yet will restore "fair and orderly markets " eventually ? However like most medicine the recovery because of the disease will take time . These recent events of abuse and fines has finally shown us that exchanges have no longer the authority to regulate their own exchanges and despite the fines and guilt ;the innocent parties are still out of pocket ;still awaiting apologies and perhaps compensation ?  Finally there is a remedy BUT why go back to the very people who ignored it in the first place  ?  Exchanges cannot go unpunished as their market supervision depts were very aware of the blatant abuses  ; I sent many an email to LIFFE ; EUREX & CME .

 

EUREX .  LIFFE ....CME

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Neil Crammond

Neil Crammond

trader

trader

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