SEC and CFTC reviewing May 6 ‘unusual trading activity’

invisibleSHIELD case for iPadThe Securities and Exchange Commission and the Commodity Futures Trading Commission have released the following statement:

“The SEC and CFTC are working closely with the other financial regulators, as well as the exchanges, to review the unusual trading activity that took place briefly this afternoon. We are also working with the exchanges to take appropriate steps to protect investors pursuant to market rules.

“We will make public the findings of our review along with recommendations for appropriate action.”

Source: SEC, CFTC

17 Comments

  1. I think some trader accidentally added an extra zero to a sell order.

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  2. We could look at the Chinese and Arab oil states that have huge investments in the US Financial markets. Or we could look at Goldman Sachs, which owns the Domestic financial market. Or we could look at the 80-year old regulatory system that has been gutted by the financial industry’s lobbyists in the past decade.

    Doesn’t matter what it is, there is most definitely something wrong for something like what we saw yesterday.

  3. Obviously, G. Sachs and others made a killing yesterday.

    It was the ultimate crooked move by the “day traders”

    All the investors whose stop loss sells went through, then, for the day traders it was like shooting fish in a barrel to pick up stocks cheaper at that point.

    I watched it and I have never seen the market move so fast.

    What a setup. Somebody should be going to jail for this one. The responsible person will probably end up being employed by the largest employer in D.C.

  4. A couple extra zeros!
    It would be quite difficult for any computer attack to cause that kind of damage. Not that computers are perfect or a “force for good”, just that this isn’t the sort of thing they are likely to start. Once the initial mistake was made, though … thud !
    ron, despite what you (and my wife, and my mother) think, the Stock Market isn’t just Las Vegas North-East. There’s generally real value in most of the stocks available. The price for that value is negotiable, which is where the profit and loss … the “gambling” … come in.

  5. Google “SEC + Porn” and you see a laundry list of NEWS articles. Most very recent.


    -Eight Hours a Day Spent on Porn Sites

    -1,800 times in a two-week period

    -upload explicit videos onto porn websites joined

    -attempted to access porn sites 16,000 times in a single month

    -tried hundreds of times to access pornographic sites

    -up to twice a day from his SEC computer during work hours.

    The report concluded that most of the cases began in 2008, just as the financial system began to collapse, and the problem hasn’t stopped.

    {“Oddly enough, news of the S.E.C.’s porn problem is not a new revelation,” she writes. “In 2008, we reported that the inspector general had discovered the agency’s pornography problem, and it wasn’t limited to just watching the stuff. One S.E.C. employee went so far as to start his own private pornography business using S.E.C. resources, ‘including Commission Internet access, e-mail, telephone and printer’ … the results of those investigations were routinely reported to Congress, and they’ve been publicly available all this time on the inspector general’s Web site.”}

    The agency had 3800 employees in ’07 – most I’m sure doing a good job, but given what is happening in the financial markets, it’s astounding to read the top listed NEWS article:

    “SEC porn scandal results in zero firings, agency says‎
    Washington Post – Apr 28, 2010

    SEC porn scandal results in zero firings, agency says
    None of the Securities and Exchange Commission employees caught using government computers to view pornographic images has been fired, according to the agency.”…..

  6. Apple should shield their stock from this crap. They should take 1/2 billion dollars and set up a trailing buy at about 15% or 20% under the prior day close. Then take another 1/2 billion dollars about 25% to 30% under the prior day close.

    IF THIS HAPPENS AGAIN APPLE WILL DROP ANOTHER $10 MILLION OR SO IN THE COMPANY ASSETS AFTER THE 5 MINUTE BOUNCE. With over $40 billion in the bank, if we are not getting dividends, we could get some stock protection at least! Or give us the bounce profits as a dividend!

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