And of course if you are a tape follower, then you will be able to spot all these guys playing their games......................................
Government indicts specialist traders
The U.S. Attorney for the Southern District of New York charged 15 former and current New York Stock Exchange trading specialists at five major specialist firms with fraud, alleging they set aside customers' orders in favor of their own firms' actions.
The traders face 10 years in prison and fines of $1 million to $5 million, CNBC's Bertha Coombs reported. The specialists firms named are LaBranche (LAB, news, msgs), Van der Moolen, Goldman Sachs' (GS, news, msgs) Spear, Leeds & Kellogg, Bear Stearns' (BSC, news, msgs) Bear Wagner and Bank of America's (BAC, news, msgs) Fleet Specialists.
In addition, the NYSE settled charges with the Securities and Exchange Commission that it failed to police the floor traders. The Big Board will establish a $20 million fund to finance regulatory audits every two years until 2011, Reuters reported.
Last year, NYSE specialists firms agreed to pay $247 million to settle charges its employees put the firm's own orders ahead of customer orders to take advantage of knowledge of which way the market was moving, The Wall Street Journal reported. The practice is known as front running.
Specialists firms provide liquidity for stocks they oversee, buying or selling on behalf of the firm when there is no match for a customer buy or sell order.
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Government indicts specialist traders
The U.S. Attorney for the Southern District of New York charged 15 former and current New York Stock Exchange trading specialists at five major specialist firms with fraud, alleging they set aside customers' orders in favor of their own firms' actions.
The traders face 10 years in prison and fines of $1 million to $5 million, CNBC's Bertha Coombs reported. The specialists firms named are LaBranche (LAB, news, msgs), Van der Moolen, Goldman Sachs' (GS, news, msgs) Spear, Leeds & Kellogg, Bear Stearns' (BSC, news, msgs) Bear Wagner and Bank of America's (BAC, news, msgs) Fleet Specialists.
In addition, the NYSE settled charges with the Securities and Exchange Commission that it failed to police the floor traders. The Big Board will establish a $20 million fund to finance regulatory audits every two years until 2011, Reuters reported.
Last year, NYSE specialists firms agreed to pay $247 million to settle charges its employees put the firm's own orders ahead of customer orders to take advantage of knowledge of which way the market was moving, The Wall Street Journal reported. The practice is known as front running.
Specialists firms provide liquidity for stocks they oversee, buying or selling on behalf of the firm when there is no match for a customer buy or sell order.
d998
