Illegal trading on Wall Street
Jul 31, 2014
It is now being reported that more than half of the futures trading on Wall Street are illegal. It is the kind of trading done in the late 1920’s which brought down Wall Street in 1929 and inspired new laws making such trading illegal. Those laws are now being broken regularly on Wall Street, according to this article:
The futures markets are pristine, according to testimony Duffy gave before the U.S. Senate Agriculture Committee on May 13.
On Tuesday of this week, Duffy’s credibility and the honesty of the futures exchanges he runs came into serious question when lawyers for three traders filed a Second Amended Complaint in Federal Court against Duffy, the Chicago Mercantile Exchange, the Chicago Board of Trade and other individuals involved in leadership roles at the CME Group.
The conduct alleged in the lawsuit, backed by very specific examples, reads more like an organized crime rap sheet than the conduct of what is thought by the public to be a highly regulated futures exchange in the U.S….
The Justice Department and FBI have opened investigations into high frequency trading. Let’s hope that includes both stock and futures exchanges.