SEC Report On May 6 Meltdown Discusses HFT, Has Not One Mention Of The NYSE's "Supplementary Liquidity Providers"
One thing that there is no mention of anywhere in the report, is the NYSE contraption known as Supplementary Liquidity Provider, a program created to give Goldman dominance over the DMM-parallel liquidity rebate system at the NYSE. One would think that the SEC would be aware of this program that was supposed to expire in early 2009, yet continues to be extended and provides Goldman and Getco with, arguably, unprecedented forward-looking information on order flow.
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Anybody remember the game show "Concentration"? As contestants answered questions correctly, another piece of the puzzle was revealed. That's what this story reminds me of- another piece of the puzzle of unjust enrichment Goldman has given itself is revealed.