MY DADDY WAS A BANK ROBBER ! HE DID IT FOR THE MONEY !

Last week  I was asked who is in charge ?  Massive fines but sadly no order of command ! 

 The last decade exchanges have moved from not profit organisations to For profit and have held back nothing in pursuit of a new member/ liquidity or pursuit of new  volume . This status has totally struggled to maintain their "fair & orderly status " New strands of rebates , market making , co - location and  HFT  are now all part of the debate .  Recent arguments have fairly criticised the exchanges  self regulatory authority,which gives exchanges the powers  to maintain  "fair & orderly markets " in the absence of an government regulator  . This  is interesting as certain court cases prove .........Navindar Sarao appears to have "spoofed " a fortune over a decade  un interrupted by any exchange !  This appears that exchanges  to be  allowing abuse and manipulation than attempting to stop it . Sarao was a very large liquidity provider and a profit source for many an exchange .

The Cattlemens Beef association are totally correct in complaining about their futures market , especially to volatile limit price movements, and now struggle to have a hedging  tool to protect their business ; sadly CME appear to have sided with HFT rather than the retail trader ! Alarm bells should be ringing  . Recent fines from the french regulator of $5 million euros to both Virtu financial and the Paris euronext exchange proves exchanges need as much supervision as traders !  Virtu 96% cancellation rate cannot be a useful tool to retail trade or even to real liquidity  ? Previous old traders , Paul Rotter , claim  Eurex exchange allowed his spoofing and layering trades as it increased volume & liquidity ; 150 K  round turns a day justified  his trading . This only proves that exchanges are in need of serious market supervision and hopefully common sense may prevail and an independent regulator appointed ASAP .

       Sadly this will not happen as funds are lacking despite massive fines being imposed . Last week CFTC , Timothy Massad ; at a budget hearing  stated that his agency does not have the monies available  to inspect firms or exchanges it regulates ; or to pursue all the enforcement cases it would like including spoofing or metal scams .                                                                                                                       I struggle with Tim Massad  ; as if I were a bank would  I tell a bank robber that the alarms were turned off ? Most market abusers  are aware when they can both abuse and gain most profit and normally when regulators were  asleep  . Finally Massads costing looks stolen as recently billions of $ of fines appear to have been misplaced and a % not returned to improve beating or controlling market abuse . Hopefully governance will oversee a very narrow view from our echanges ?