{"id":6392,"date":"2015-03-10T19:48:16","date_gmt":"2015-03-11T00:48:16","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6392"},"modified":"2015-03-10T19:50:25","modified_gmt":"2015-03-11T00:50:25","slug":"6392","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6392","title":{"rendered":"Former SEC Director Admits The Truth: The Market Is Rigged"},"content":{"rendered":"

Former SEC Director Admits The Truth: The Market Is Rigged<\/a><\/h3>\n

For more than a decade, John Ramsay kept his mouth shut about how rigged the US equity market was.<\/strong><\/p>\n

As SEC Director of Trading & Markets,\u00a0Ramsay tells Bloomberg<\/a>\u00a0her “had red tape over his mouth,” but now he is “uncorked.”<\/p>\n

\n
\u201cI\u2019ve been able to find my voice on these issues in a way I couldn\u2019t have done when I was in the government, because you\u2019re always limited by internal politics and not wanting to get too far out in front of the agency,\u201d he said. \u201cI feel like I\u2019ve been a little bit uncorked.\u201d<\/strong><\/div>\n<\/blockquote>\n

Having joined Brad Katayama’s IEX Group (infamous for the Flash Boys’ exposure), Ramsay\u00a0 is calling out\u00a0the \u201cconvoluted\u201d and “illogical” pricing rules of major stock exchanges and compared the $25 trillion U.S. stock market\u2019s structure to the Death Star of “Star Wars.”<\/strong><\/p>\n

It will be hard for current regulators to shrug off Ramsay’s comments,<\/p>\n

\n
\u201cHe\u2019s a guy who accomplished a lot and doesn\u2019t have anything to prove,\u201d<\/strong>\u00a0said James Burns, who worked with Ramsay at the SEC and is now a partner at the law firm Willkie Farr & Gallagher LLP.<\/div>\n

Ramsay helped the SEC hammer out the post-crisis Volcker Rule,\u00a0<\/strong>which bans government-insured banks from gambling with depositors\u2019 money. The rule has an exemption — it allows banks to continue \u201cmaking markets,\u201d or standing ready to buy or sell stocks and bonds from customers. Financial regulators initially clashed over that exemption, with banking agencies fretting that the language would open loopholes for Wall Street to exploit.<\/p>\n

Ramsay helped ease the tension with clear language and humor, bank regulators said. Ramsay was the voice at the table \u201cmaking us understand how market making is done, and what kind of parameters are around it,\u201d said Scott Alvarez, the Federal Reserve\u2019s general counsel.<\/p><\/blockquote>\n

And so when he uncorks a nasty reality check on the market, perhaps it is time to listen…<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Former SEC Director Admits The Truth: The Market Is Rigged For more than a decade, John Ramsay kept his mouth shut about how rigged the US equity market was. As SEC Director of Trading & Markets,\u00a0Ramsay tells Bloomberg\u00a0her “had red tape over his mouth,” but now he is “uncorked.” \u201cI\u2019ve been able to find my […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[4081,506,4080,709,711,2064],"class_list":["post-6392","post","type-post","status-publish","format-standard","hentry","category-economics","tag-john-ramsay","tag-markets","tag-rigged-markets","tag-sec","tag-securities-exchange-commission","tag-volcker-rule"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6392"}],"version-history":[{"count":3,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6392\/revisions"}],"predecessor-version":[{"id":6395,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6392\/revisions\/6395"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}