The Market Is Rigged… But You Have an Edge

Comments (2)

  1. Bill K says:

    HFT has been in existence for over 5 yrs. The NYSE is part of it. They sell their computer space to the HFT, which gives HFT a few miliseconds edge over all of us leeming. It’s unethical & illegal, regardless of what the regulators say. HFT can get away with this because their big & powerful. The SEC has been studying this since it’s inception. They are pathetic. Let’s get some real regulators to abolish this nonsense.


    Dennis Myhre Reply:

    I agree with your comments, especially the SEC lack of enforcement. A similar concern is for 401k investors whose employers hire insurance companies as plan providers to package group annuities for their employee’s retirement plan. Insurance companies also sell guaranteed annuities that include the purchase of securities. When a market correction or other similar event results in a sell-off, insurance companies engage in self dealing and sell their losing investments at inflated prices to 401k separate accounts. In an off market buy/sell exchange such as this, the insurance company is both buyer and seller, and will never lose money for their guaranteed annuity. While this practice violates SEC regulations, it is never prosecuted.


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