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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Khai Nguyen who wrote (21220)	2/26/2000 10:06:00 AM
From: Rande Is	Read Replies (1) \| Respond to of 57584

. . . . . .On SEC and NASD. . . .Rules and Regulations. . . . NASD Plans Enhanced Surveillance To Detect 'Spoofing' by Traders Dow Jones Newswires <Reply# 21220> Thanks for posting, Khai. Excellent news!! This is what I was talking about the other day, when I said that a popular manipulation was flashing large orders, then pulling them. . <Reply# 21102>. I said then, that it was illegal in some ways. . .but was unable to articulate exactly how that works. . .evidently if it is done for the purpose of manipulation for a higher trade against the flash. . . then it violates securities law. "Last year, for example, more than 90 market professionals were charged in federal indictments in connection with manipulation schemes," the Justice Department said. Notice, those 90 were market pros and not individual investors. This new surveillance detection software by the NASD,while long overdue, is a welcome relief. After being so vocal about the playing field being so slanted you need mountain climbing gear just to hang on . . . making most trading by the "little guy" a losing battle . . I must do an about face and compliment the action of the SEC, the NASD and the Justice Department. Keep up the great work! Over the past year many thousands of OTC companies have fallen by the wayside, due to not meeting Federal financial reporting requirements. Decimal quotes are coming soon, which should both help the little guy to clearly see the price difference and interpret the spread, which may even be smaller in many cases. We are now allowed to trade after hours and pre-market, prior forbidden territory. Imagine several decades ago, when you had to pay handsomely just for real-time quotes. . .those trying to trade on 15-min delay were eaten alive. Yesterday, there was news where brokerages, analysts, market makers and other industry professionals were strongly opposed to a new SEC driven regulation [special thanks to Arthur Leavitt], whereby all investors would have "equal access" to news, earnings reports and other pertinent info, which is typically published to us long after the market makers, brokerage houses and analysts have had sufficient time to evaluate and take positions one way or another. With the new rules, ALL info must go out to all people at the same time!. . .giving us the very same critical time to look over the numbers as the analysts have. . .so we can decide to either buy, sell or hold on the news, numbers, etc. While the playing field is LONG from being level. . .these steps are in the right direction and my vertigo is subsiding. I applaud both the NASD and SEC, of whom I have been highly critical. Why stop there? Next, I would like indication of sale type [buy, sell, short, cover] on time and sales feeds. I would like to see similar detection surveillance software to alert on naked short positions on ECNs and on the floor. I would like a daily "closing price" for accounting purposes, so a daily reckoning can be performed. . . . perhaps midnight would do. I would like to see standardized brokerage account reporting and terms, with clear indication of all settled and unsettled balances. I would like to see a running balance sheet in brokerage accounts, as banks have on checking accounts. . .where we may see all credits and debits to the account. . .in REAL time. And finally [for now], I would like for journalists, analysts, fund managers and other published professionals to be required full disclosure of positions, both long and short positions. . of themselves, their employer, or any other imposing entity, where views could be considered biased. . .with a "published follow up statement" within 72 hours of each interview, report, etc. detailing any changes in position by same related parties on any stocks publicly discussed in the analysis or report. This would eliminate much of the pump and dump or bash and cash performed on CNBC, in Barrons, and throughout the media and cyberspace. There has been much done. There is still much to do. Rande Is