PARTNERS IN CRIME

PARIS EURONEXT & VIRTU FINANCIAL FINED $5 MILLION EACH !  

  Finally after countless complaints over numerous years a regulator ha finally punished an exchange for failing to provide fair and orderly markets . However the best punishment would of been to suspend both of them ! It now appears that exchanges have given certain members privileges and turned a blind eye while they manipulative and abuse the marketplace  in exchange for volume and liquidity .

 Virtu financial were using Algos that rapidly placed and cancelled orders which created a distorted order book which caused distortion to other honest traders .  The AMF regulator stated Virtu accounted for 62% of messages and orders on the Euronext Paris but just 2% of actual trades . Its algo worked so fast that 66% of its orders lasted less than one second and 25% lasted less than 10 milliseconds . Therefore Virtu had secured a dominant position on the Euronext Paris , Bats , Chi-x and Turqiose platforms and therefore provided unfair trading conditions to honest retail players . The exchange had granted Virtu an exemption from penalities applicable to exceeding the ratio of orders placed compared to trades executed which at the time was 100 % ; AMF also stated that this allowed Virtu to improve its algo and that Euronext had not operated with neutrality and impartiality in accordance with market integrity . During this period exhangs constantly denied any wrong doings or  providing privileges to certain members  ; this fine proves they were lying and asks the question how many other exchanges are ? Sadly this also asks where were the FSA were during this period !

  With  exchanges now charging extra for market data perhaps  our regulators can now enforce  "fair and orderly " markets and make exchanges uncouple themselves from abusive members to boost their share prices . The one question not answered is an apology to the honest traders who have lost monies during this period who knew they had their pockets picked ?