Is forex market controlled by someone? - page 46
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Not on individual, basically this economic market controlled my buyers and sellers. If the number of sellers are more from buyers then market will move for down. So, our (retail trader) main job is to know the better side thus we can achieve our profit consistently.
That is not quite so (see the current long to short ratios)
Here's proof that credit rating agencies are just the worst
Credit rating agencies were vilified during the financial crisis for failing to detect risk in the subprime market before it was too late.
And in a recent note to clients, Sivan Mahadevan's team at Morgan Stanley looked at the "Fallen Angel Spread," or difference between the lowest-rated investment grade debt (BBB rated) and the highest-rated junk debt, and discovered just how clueless rating agencies really are.
According to Morgan Stanley, "It appears that rating agencies are oftentimes 'late to the game,' as their ratings decision usually occurs after materially negative information has already been well disseminated in the investor community."
The chart shows BBB spreads widen ahead of a downgrade and blow out on the downgrade event.
However, once the downgrade is digested, the BB spread tightens. It seems then that for investors, the rating agency opinion only matters after the fact.
Interestingly, Moody's Corporation's stock price plunged 76% to a low of $17.95 per share in February 2009 after the company and other rating agencies were criticized during the fallout from the financial crisis, but has since climbed 510% to its current level near $110 per share.
Moody's has significantly outperformed the S&P 500, which is up 211% over that time.
Inside The Swiss Franc LIBOR Rate Rigging Chatroom: 6 Years Of Manipulation
One of the nice things about the multitude of lawsuits and settlements surrounding the concerted effort by Wall Street’s largest banks to manipulate the world’s most important benchmark rates is they’ve produced a litany of hilarious chat transcripts that include such gems as "mess this up and sleep with one eye open at night" and the always popular, "if you ain’t cheatin, you ain’t tryin."
Now, courtesy of the appendix attached to the latest LIBOR-related suit brought against Wall Street (and one hedge fund), we bring you six years of Swiss franc LIBOR manipulation presented in chronological order. Highlights here include:
"It is our natural right to reflect our interest in the libor fixing process"
"Can't you ask your fft to contribute 1m chf libor very low today? I have 10yr of fix, 8 of which against ubs and they're getting on my nerves."
"yes, ok mate, I am heading out for a run, enjoy, talk tom, get those fixings down"
"whoooooohooooooo 0.01%? that'd be awesome"
Bluecrest Lawsuit 2
It is getting worse and worse
6 Years And One Witch Hunt Later, Goldman Changes Its Mind On "Secret Sauce" Software
They are always front running - the brokers that allow them to do so should be closed (brokers like Reuters, Bloomberg, and so on, not just the small potatoes)
The HFT "Treasure Map" - Presenting The Rigged Stock Market's Full "Latency Abritrage" In One Chart
Last week, when poring through the SEC's complaint over ITG's criminal frontrunning of client order flow in a "experiment" prop trading group within its Posit dark pool known as "Project Omega", we clearly laid out the "criminal fraud" that allowed the original dark pool to make money without any risk, and explained why HFT's never lose money.
Only, in this particular case, the fraud was so egregious, even the SEC had to step in and slam ITG with the biggest fine on record for a private Wall Street exchange (at least until the fine about to be levied at Credit Suisse's own dark pool, the biggest in the US, Crossfiner is revealed).
The reality is that most HFTs do not engage in such brazen criminal activity - most act within the confines of the law. And yet, as Virtu has shown year after year, they never lose money. How can the two coexist?
Simple: the answer is that in the aftermath of Reg NMS, and the terminal capture of regulators by those who benefit from market fragmentation, regulators blessed a two-tier market, one in which HFTs can frontrun non-HFT order flow and not be worried one bit about the consequences.
The technical term for this gross aberration of market fairness and efficiency is latency arbitrage, and it is best shown on the following annotated "map" courtesy of Nanex' Eric Hunsader, laying out the embedded, and regulator blessed, latencies between the three big New Jersey exchange centers: Mahwah (NYSE), Secaucus (BATS), and Carteret (Nasdaq) for everyone but the top tier - the High Frequency Traders, whose only advantage is having the millions to spend both in one-time collocation setup as well as recurring microwave/laser fees to obtain faster data access which then allows them to frontrun everyone else and generate massive returns on their investment. Returns that are due only to done thing: frontrunning.
read more
The PBOC could intervene in both directions on the yuan
So says PBOC chief economist Ma Jun in a Q&A statement sent by email today and reported by Reuters
China's move to weaken the yuan last week could head off further similar "adjustments", and the yuan is likely to move in both directions as the economy stabilizes he said
The yuan's drop last week and its increased flexibility could help "sharply reduce the possibility" of similar adjustments in future, Ma added
"In the near term, it is more likely there will be "two-way volatility," or appreciation and depreciation of the yuan"
"The central bank would move only in "exceptional circumstances" to iron out "excessive volatility" in the exchange rate"
Ma played down market fears that a "currency war" could be triggered by China's devaluation, which dragged some other Asian currencies to multi-year lows.
"China has no intention or need to participate in a 'currency war',"
"There is no need to worry" that the central bank will continue to intervene in the market to support the yuan as China's economy stabilizes, .
"In the future, even if the central bank needed to intervene in the market, it may be in either direction,"
Ma also said that he expected the economy to grow around 7% this year - in line with the government's target.
source
Meaning : they can do whatever they want. They told to the rest of the world that the war is having more participants then the rigging FED HFT at Chicago, SNB and ECB
Fraud was Worth It for Citigroup; Pays Only $180 Million after Gaining $3 Billion from Hedge Fund Investors
Before the financial crisis of 2008, Citigroup talked up two hedge funds with investors, saying the investments carried about the same risk as municipal bonds.
The pitch worked wonderfully for Citigroup, which wound up pulling in almost $3 billion for the ASTA/MAT fund and the Falcon fund from 2002 to 2007. Then Wall Street crashed the following year, and the 4,000 people who invested in the hedge funds watched them collapse along with their investments. Even as the funds were tanking, they took in another $110 million from investors, according to Courthouse News Service.
The Securities and Exchange Commission (SEC) went after Citigroup for making false and misleading claims about the funds and fined the corporation $180 million, or about 6% of the amount Citigroup flushed down the financial toilet via those funds.
“Advisers at these Citigroup affiliates were supposed to be looking out for investors’ best interests, but falsely assured them they were making safe investments even when the funds were on the brink of disaster,” Andrew Ceresney, director of the SEC’s enforcement division, said in a statement.
An internal Citibank rating showed the investment posed a significant risk to principal, Bloomberg reported. In addition, one of the funds was seeking a loan to stay afloat.
“We are pleased to have resolved this matter,” Citigroup spokeswoman Danielle Romero-Apsilos said in an e-mailed statement to Bloomberg.
They should be pleased. Not only did they get to settle the fine for pennies on the dollar but Citigroup did not have to admit or deny the SEC’s claims in agreeing to settle.
source