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Wednesday, July 1, 2009

SEC to end transparency of Goldman Sachs manipulation of US Stock market

The SEC has announced, that major market makers, such as Goldman Sachs, a change in reporting their trading activity. Unfortunately, the announced change is vague, but highly suspicious.

After the Great Depression, the American people reigned in the bankers with regulation. Much of the regulation had to do with transparency, to ensure the common citizen had a level playing field with the big money managers with access to critical information. Company earnings reports (stocks), crop results (commodities), government money creation (inflation), where all reported to the public allowing all participants to have the same advantage to investing.

Now the SEC has changed market makers reporting process for trading activity. The SEC tries to clarify with this post here, but the nature of the change to me seems unclear and suspicious. I quote:

"The New York Stock Exchange LLC (“NYSE”) will be decommissioning the requirement to report program trading activity via the Daily Program Trading Report (“DPTR”), which was previously approved by the Securities and Exchange Commission (the “Commission”).1 The last trade date for which member organizations will be required to file the DPTR with the Exchange will be July 10, 2009 and therefore the last required date to submit the DPTR will be July 14, 2009."


As an investor, it is currently difficult to gather statistics to understand market trends, through big money using dark pools. If trading of securities is further obscured, this will further allow the US government to inject trillions of dollars through Goldman Sachs to manipulate market valuations, as already proven here (click).

I can only hope that transparency remains, and further dark pools are exposed, as well as CDS exchange put into place. The US needs transparency to regain trust!

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