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To: Art Bechhoefer who wrote (5827)	2/9/2010 11:35:19 AM
From: Jim Mullens	1 Recommendation Read Replies (1) \| Respond to of 9129

Art, Re: Manipulation---- “It's not legal…” Thanks for you insight- ” It's not legal in New York State. There are two laws that apply, one of which is known as the Martin Act, used by Attorneys General Spitzer and more recently Cuomo to go after firms that manipulate the price of shares through intentionally misleading information. The other law, similar to that, applies to brokers who manipulate share prices for their own benefit. Note also the comments on the scale of operation needed to influence the price. This is a classic abuse of the free market system, which requires that all transactions be small enough so that no single transaction can affect the market price. That's precisely why it is necessary to have regulations and enforce regulations. It's the only way to preserve the market system.” 1) I believe Cramer when saying---“its legal”--- was referring to futures contracts and not shares of individual equities. Is it also illegal to manipulate futures contracts / ETFs/ Index funds ? 2) “This is a classic abuse of the free market system, which requires that all transactions be small enough so that no single transaction can affect the market price.” a) Do you have source / link to the above? b) The individual transaction could be small, but with program trading & high speed computers a hedge fund(s) can now flood the markets with millions small transactions that when taken in total effectively circumvent the above. Have the “free market system” laws / conventions been revised to accommodate the above? TIA- jim