Thursday, September 1, 2011

Goldman-Sachs launches a new stock exchange in Canada

Just a quick post for the day.
What is most interesting about this news is the SIGMA - X

Goldman plans to expand its global electronic trading system with the launch of SIGMA-X Canada, a so-called alternative trading system the investment bank says will provide “a broad source of Canadian equity liquidity” to potential customers.

SIGMA-X Canada is what’s known as a dark pool, a market where participants are permitted to trade anonymously.

See any cause for concern there?

Such markets have major appeal for large institutions and algorithmic traders who like to keep their trading strategies under wraps so they don’t have an impact on price before a transaction is completed

Appeal for large institutions? Algorithmic traders? Who like to keep their trading strategies under wraps? Can you say underhanded? Sneaky? Corrupt?

Brief Digression: Some additional reading on Algorithmic trading or High Frequency Trading has been hitting the headlines more and more over recent months. Why? Because it involves huge sums of money and more than a little intrigue.

Guess who was behind the intrigue mentioned in the article above?

Goldman-Sachs, off course.

High Frequency trading was also fingered in the flash crash of May/2010 -Which temporarily erased 862 billion in value from the stock market. And coincidentally or not caused Congress to change their mind about auditing the Fed.

Covered that here: Stock Market Free Fall causes Senate epiphany on Auditing the Fed

Don't worry the SEC "found no evidence the sell off was triggered by manipulation"

Which is of course utter hogwash. Or excrement from a bull! Take your pick.

Back to the originating article-

Canadian regulators recently completed a review of dark pools, and late last month issued a issued a framework of expectations to guide participants in the fledgling domestic market.

“The growth potential of the Canadian equity market is significant,” said Todd Lopez, a senior executive at Goldman Sachs Electronic Trading, in a statement Thursday. “We believe unique, alternative pools of liquidity will continue to play an important role in the Canadian market’s development.”

Goldman operates similar SIGMA-X trading systems in the United States, Europe and Asia.

The smell of market manipulation permeates this SIGMA-X trading system and this new market in Canada


  1. As soon as I saw this headline the bells went off.

    This is a major attack on our financial institutions in Canada, most likely the ones that have kept us from sinking as low in some ways financially as the US. I am no money person but I have been wondering when they would make a new tact to get in to Canada's money.

    You can bet this stinks of Harper croneyism. There is no avoiding that. Welcome to NAFTA!

  2. Sigma or 'S' in Greek + X might be shorthand for SaX / Sachs. Their own system run by them - personally any country with a Stock-eXchange means it is NOT a democracy.


  3. Hey Noor!
    You too?

    This is a financial attack on Canada, resources and it's people.

    Welcome to NaFTA?
    No thanks

  4. Aferrismoon! How are you?

    "Sigma or 'S' in Greek + X might be shorthand for SaX / Sachs."

    Yes, sigma is S for greek! I checked it out myself after reading your comment. So sigma x is obviously
    Sax or in this case Sachs

    "Their own system run by them"

    For their benefit.

    As you say, this has nothing to do with democracy and everything to do with tyranny.

    Thanks for that comment aferrismoon.
    The name says it all, doesn't it?

  5. Hey Pen,

    Thanks for this. Took a very quick look at their website, and it looks as if it is a good vehicle for future manipulation of the market in Canada, so they can coordinate properly with the US.

    Naked short selling is #1 amongst these methods, usually used to bankrupt and take over companies. Goldman Sachs paid the heftiest fine ever (eventually) for destroying a couple of banks in Europe in 2008 if memory serves correct.

    Wonder if ex-Sachs employee Carney - Govner of the Bank of Canada - had some pull to make this happen.

    Greater control is all this is.

  6. Oh, and for the Canadians out there:

    Pull out of BMO - Bank of Montreal - if you have serious investments there. They became QUITE overextended a little while back when they paid out a huge amount of "cash" to save an american bank from bankruptcy. They would be the first of the Canadian banks to go when the shit hits the fan.

    Royal Bank, Scotiabank would be the top two that absolutely will not fail.

    Although they may have bank holidays, that's quite likely in the future.

    I hate to be a Debbie Downer, but . . .