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To: ftth who wrote (35301)	9/14/2010 3:07:29 AM
From: axial	Respond to of 46821

HFT update - First HFT Casualty As Finra Fines Trillium $1 Million For Quote Stuffing And General Market Manipulation (Again) zerohedge.com --- "Perhaps one should ask who the permissive factors in this ultimately illegal activity are: and the answer is the exchanges themselves. Should exchanges have a responsibility to protect the clients on their exchange? Should that responsibility outweigh its profitability from co-location? Are owners of orders on any exchange entitled to be protected on that exchange from nefarious activity? Should they at least expect the exchange to not continue profiting from those unscrupulous outfits that harm its clients?" --- [The problems began when exchanges converted from non-profit to for-profit enterprises] Jim

To: ftth who wrote (35301)	9/17/2011 1:11:59 PM
From: axial	Respond to of 46821

[Opinion] Gillian Tett: This $2bn mess has uncanny historical echoes [Reading the parent article requires free registration. The link between ETFs and HFT has been discussed upstream] 'In May, I wrote a column that warned that the fast-growing world of exchange traded funds was heading for a scandal, writes the FT’s Gillian Tett. To be honest, my expected timeline was years, not months. But history is playing out faster than I guessed. We do not yet know precisely what has gone wrong at UBS; and, in particular, with the conduct of Kweku Adoboli, the ETF trader. But when regulators eventually unpick this $2bn mess, I would hazard that one culprit will turn out to be a pernicious cocktail of opacity, complexity and naive enthusiasm for innovation. For what has happened in the ETF world in recent years has some uncanny echoes of what took place with collateralised debt products last decade; and the fact that it was those CDOs which caused such terrible damage for UBS in 2007 just reinforces the historical echoes. And the bitter irony.' ftalphaville.ft.com Jim