Dollars and Jens
Wednesday, December 17, 2003
 
NYSE specialist system
It turns out that this article provides a better explanation of what's going on with CALPERS and NYSE than what I linked to before, even though it's not purportedly directly concerned with it.
It cited a number of illegal strategies including the age-old tactic of "front-running," in which the specialist uses knowledge of imbalances in existing orders to place lucrative bets for themselves. NYSE rules prohibit specialists from exploiting their privileged positions, but Calpers maintains that these rules were regularly ignored with a wide variety of subtle deceptions.
Well, that answers that.


Powered by Blogger