Great recap piece in the New York Times on whether or not Wall Street is picking the pockets of non-club investors (read - the guys who do not generate 80% returns with a Sharpe > 5.0 - can someone explain how risk/return works again). The consensus sure looks good for class action lawsuit lawyers.
The piece also recognizes the tremendous contribution that Zero Hedge's readership has had in this ongoing debate, once more highlighting the interactive nature of new media and how crowdsourcing is the new dominant paradigm for Media 2.0.
Even the New York Stock Exchange itself is acknowledging the HFT media campaign.
For anybody new to the site, please check out the Zero Hedge glossary for all the relevant articles on specific topics.
Additionally, should it be odd that Direct Edge, the company in the eye of the Flash hurricane with its ELP program, has the following reported ownership structure:
Yes. Direct Edge is an independent broker-dealer owned by a consortium that includes the International Securities Exchange (“ISE), Knight Capital Group, Inc., Citadel Derivatives Group, The Goldman Sachs Group, and J.P. Morgan. Knight Capital Group was originally the sole owner of Direct Edge and the firm was spun off in the third quarter of 2007 when Citadel and Goldman made investments. With a 31.54% stake, the ISE is currently the largest shareholder of Direct Edge, followed by Knight, Citadel, and Goldman, each with 19.9%.
And here are the latest ruminations out of Max Keiser, who takes on a curious angle in his most recent Goldman Sachs attack: