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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: The Duke of URL© who wrote (90967)	2/19/2005 3:00:30 PM
From: Jeffrey S. Mitchell	Respond to of 122087

Duke, the scam we've been talking about involved actual manipulating of computer records, so I sort of doubt that would be widespread, but you never know. You'd think the clearing broker's software would be sophisticated enough to log everything and thus have caught the pattern of early morning cancels, but apparently not. Given that trades take a couple of days to clear, we all know there are ways to take advantage of that. But, conversely, if you eliminate any sort of float then you face an even bigger risk in having money instantaneously diverted to some foreign safe haven bank account before anyone knows what hit them. I searched the SEC records and found an example of a similar recent late trading mutual fund scam where orders were canceled the next day-- but with no software manipulating, just subterfuge. Yes, the perps were based in Boca. See: sec.gov. As to how to fix the problem, I know very little about the interworkings of how trades are cleared so am clueless about how to stop it. However, just using common sense, I would mandate logging for all transactions in some sort of industry standard format that would then be submitted electronically to the SEC for analysis. - Jeff