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Take this thing you can do -- turn to the other story that's getting huge headlines here in New York as well as the rest of the country is Wall Street rigged.
The SEC launched an investigation of the New York Stock Exchange and NASDAQ over a certain kind of stock trade ordering its called -- not slide.
This happens when some traders get information earlier than the rest of us believe it or not.
This happens more often than you may think.
Kyle Harrington president of -- capital management is here to give us some insight on what's going on and simply put hide not slide we're gonna get rid of the technicality.
What it does is it hides a pending trade from regulators.
And then wants a trade is about to be executed allows that hit in trade to jump to the front of the line is that accurate.
That's -- that's accurate adamant you know I -- now Wall Street for about twenty years I can say this that.
If the order that is.
A -- that I want to execute in order for.
Should be executed at the time that I've played a minute you place the order they should place that they -- and hide it but here's where -- deadly -- people again upset.
The people who are getting to take part in -- not slide our high frequency traders huge amounts of money big.
Big money what percentage of trade volume does -- represent AI I think typing into trading is at least two thirds of the trading that goes on what percentage is -- not slide do we know.
Well I don't know the exact percentage.
But I can tell you this because a high volume trading firm trades more than let's say Harrington capital management's client base that I represent.
They should not be given -- unfair competitive advantage in terms of pricing.
If in fact they want if they trade more and they want to have a low and they are given a lower price in terms of their ticket.
It charges for example that's one thing.
But there should be no competitive unfair competitive advantages.
For what price the stock is bought or sold so you and I and I -- many Americans believe in a free market but repeatedly -- hear stories like this the New York Stock Exchange paying a fine to the SEC for preferential treatment.
Of some of its clients.
We keep hearing about big money high players getting preferential treatment what is this doing to confidence of your clients and other people.
While this is an area where I think that within a capitalistic free market system madam.
There's always going to be issues that come about and there's been a heightened.
I thin -- by the SEC.
To regulate these issues and I think we're doing a better and better job that it but.
See that as it may I think that there continues to be the people that do more business and more volume with Wall Street brokerage firms.
There seems to be at times all the way in which they're getting an unfair competitive advantage and I am not for that at all.
I think it should be regulated and I think we're doing a better job at that says so I'm filling in for Melissa she's got thousands of people who watch this show every night why.
Should they believe that they stand a fair chance in this market when we are seeing that these big money players are getting a preferential shot -- Well I think that the regulators we've we've bolt up on the regulation side of the business and I've said -- historically that there has been too much regulation.
But this is one area where I think I am happy that we have more -- more regulate Tor is looking in on and bringing to light.
This portion of the violation within the free market capitalistic -- God love to have a segment called let's bash the SEC would be my favorite sport because they didn't catch this it only came to their attention that actually might have approved this kind of transaction -- of the regulations.
Because an insider said hey this is happening you should do something about it Wall Street Journal laid it all -- this morning.
It doesn't -- SEC -- or is really capable of catching.
Well let me say this -- mean we saw the Madoff situation right there -- years and years that went on where this wasn't caught by thin -- by the SEC.
As so I think that we need to deal basically we need to do a better job and put in place more strict guidelines so that this can come out at a faster paced.
All right well listen I appreciate you joining us -- -- all this wanna have confidence in the markets because so much of our wealth and our retirements are tied to it.
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