NYSE’s Next Owner Says Small U.S. Investors Get Ripped Off

[Redfairen]

Source: Bloomberg

The head of IntercontinentalExchange Inc., which is about to own the New York Stock Exchange, said U.S. equity markets are flawed because sophisticated traders are taking advantage of small investors.

A decade of regulatory and technological changes have fragmented trading across more than 50 markets and given rise to firms that use computerized algorithms to trade far faster than humans, with executions measured in less than a thousandth of a second. Also, almost 40 percent of volume takes place on private platforms, data compiled by Bloomberg show.

That means investors saving money to send their kids to college or to buy a home can be taken advantage of by traders who possess more information, ICE Chief Executive Officer Jeff Sprecher told analysts today during a conference call.

Sophisticated firms are “incented to take advantage of the people that are the weakest on the day they have to the trade, and I think that that is fundamentally wrong,” Sprecher said. “People that have built a business around that are destined to ultimately fail. I don’t think they are sustainable, and increasingly when I go talk to friends and when I listen to people that are not involved specifically in what we do, there is a sense that things aren’t fair.”


Read more: http://mobile.bloomberg.com/news/2013-11-05/ice-has-informed-view-of-how-to-integrate-nyse-ceo-says.html?cmpid=

[hobbit709]

1. This is news?

[hollysmom]

2. absolutely

so many ways, to rip people off. I just won't play anymore. There is so much insider trading that gets ignored, it makes your head spin.

[closeupready]

3. No duh.

K&R

[mahatmakanejeeves]

4. If you can't beat 'em, join 'em.

Disclaimer: this is not a solicitation to buy or sell stocks or mutual funds.

Advice from the index-fund mastermind
http://www.bankrate.com/finance/financial-literacy/advice-from-the-index-fund-mastermind-1.aspx

investing
Advice from the index-fund mastermind
By Cheryl Allebrand • Bankrate.com

Interview: John C. Bogle

If you can't beat the market, be the market: That's the logic behind index funds. More than 30 years ago, John Bogle set up shop to help investors capture market returns at minimal cost. He had realized a quarter-century earlier that complex mutual fund investing strategies don't consistently outperform market returns.

John Bogle on the Rise of Index Funds
http://live.wsj.com/video/john-bogle-on-the-rise-of-index-funds/48AE2CE7-60D5-42C6-A1E4-78560980B376.html#!48AE2CE7-60D5-42C6-A1E4-78560980B376

[bemildred]

5. Another duh. That's their business model. nt

[avaistheone1]

6. True.

k&r

[Myrina]

7. Ermagehrd, what a surprise! (NOT)

[meow2u3]

8. In other news, water is wet

The Pope is Catholic, and bears shit in the woods. Duh!

[IthinkThereforeIAM]

9. You beat me to it...

... I was going to post the exact same phrase.

[7962]

10. Short sellers manipulate the market as well. They should all be beaten.

If you think a stock is going to drop in price, then buy "put" options. What I see on a daily basis is ridiculous. Usually they do it with lower volume stocks. Makes it very easy to push down a price without actually selling a lot of shares. Then you slowly cover, and there's your profit.
Should be outlawed.

[Jerry442]

11. Even the tiniest transaction tax would drive a stake through the heart of high-speed trading.

Will never happen though, for exactly that reason.

[OneCrazyDiamond]

12. If you don't know the difference between investing

and gambling, you should probably do some reading before "investing" in the sock market.

[blkmusclmachine]

13. Savvy.