The "scoop" is another term for stepping ahead, and seems to imply the same as the term "frontrunning" does.
There was a regulatory proposal a few years back that suggested monitoring the trading behavior of dealers, and eventually dividing them into two groups, primary and secondary dealers. Primary dealers would be those that, in a particular issue, were the most involved, buying into downticks, selling into upticks, and generally dealing, rather than daytrading, the stock. They would be allowed to execute naked short sales and generally enjoy the benefits that many dealers do.
The secondary dealers would be those who either demonstrated a more conventional (buying on the way up, selling on the way down) trading approach or who stepped away frequently. They would not be permitted to short naked, and among other things, if they became inactive enough would be taken out of the stock for a certain period of time.
It seems to me that this proposal, put into practice, would be fair and address most of the concerns voiced.
LPS5 |
