Subject: Sen. Kaufman Featured in Financial Times, New York Times, Dow Jones
From: "Senator Ted Kaufman" <[email-masked]>
To: "Hunter and Kathleen Biden" <[email-masked]>
Date: Fri, 27 Aug 2010 09:51:59 -0700 (PDT)

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Kaufman
 Connection - Highlights of Ted's work for Delaware

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 http://kaufman.enews.senate.gov//images/user_images/Picture 1.png] 

*Week of
 August 23: Kaufman’s August 5 Letter to SEC Urging Stock Market Reform
 Featured in Financial Times, * [link 1]*New York Times, Dow Jones*
 [link 2]

 

"Regulators have yet to identify definitively the
 root causes of the 20 minute period of wild gyrations in stock prices on
 May 6. But their search for answers has triggered a debate on the
 advantages, and otherwise, of the significant growth in high-frequency
 trading. One element coming to the fore is the level to which these
 computerized traders, who can each execute hundreds of thousands of trades
 in a single day, are policed. Ted Kaufman, a Democratic senator from
 Delaware, said this month that the regulators ’must end the current
 wild west’ environment of anything goes in the microsecond trading world
 and replace it with a sense that trading activity is being actively
 monitored and policed for illegal behavior.’ Mr. Kaufman, calling for
 more stringent controls on high-frequency traders, said the Securities
 and Exchange Commission needed to assess whether the strategies
 deployed by the traders – chasing opportunities to arbitrage tiny price
 differentials – posed a systemic risk. It is a question the regulators
 themselves have highlighted."

*- Jean Eaglesham, “Tighter Curbs on
 Traders After Crash,” *Financial Times*, August 23, 2010* [link
 3]

*Real full article HERE [link 4]. *

"High-frequency traders are
 capable of executing transactions in milliseconds. It has taken regulators
 rather longer to cast an eye on their activities. But the May 6 flash
 crash’, when the US stock market plummeted almost 1,000 points in
 minutes, has focused regulatory attention on the systemic impact of
 automated trading.
Ted Kaufman, a Democratic senator, has compared the
 environment in which high-frequency traders are operating with the ’wild
 west’. The fact that officials still do not fully understand what
 happened on May 6 is telling.
Mr. Kaufman is right to raise a bigger
 question: who is served by ever-deeper liquidity? Equity markets in
 particular are not the mere playground of traders, but a place where retail
 investors deploy their savings. As regulators catch up with reality,
 they must ensure markets serve the non-professional users who access
 them.”

**- Financial Times ***editorial, August 23, 2010* [link
 5]

*Real full editorial HERE [link 6]. *

"It sounds like ’Wall Street’
 meets ’The X-Files.’ The stock market mysteriously plunges 600 points
 —and then, more mysteriously, recovers within minutes. ... In an Aug.
 5 letter to the Securities and Exchange Commission, Senator Edward E.
 Kaufman, Democrat of Delaware, warned about a ’micro-arms race that is
 being waged in our public marketplace by high-frequency traders and
 others.’ He said that the traders were moving so fast that regulators
 could not keep up.”

*- Graham Bowley, “Stock Swing Still Baffles,
 With an Ominous Tone,”* New York Times*, August 23, 2010 [link
 7]**

*Read full article HERE [link 8]. *

“Call him the stock market
 Senator. The fix-the-plumbing stock market senator, to be precise. ...
 There likely are some in the high-frequency trading community and other
 pockets of Wall Street pleased with the prospect that Kaufman’s term is
 winding down and that he won’t run for election when his Senate seat
 comes up in November of this year. He’s keeping the heat on them, as he
 is on the Securities and Exchange Commission.
You can agree or
 disagree with Kaufman’s recommendations. It’s hard to disagree with the
 notion that what we call the stock market has morphed into a complex web
 of interactions that few truly understand. And it’s good to see a
 legislator who knows his stuff before he speaks his mind.”

*- Neal
 Lipschutz, “The Senator For Stock Market Reform Makes His Pitch,” *Dow
 Jones Newswire*, August 24, 2010* [link 9]

*Read full article HERE
 [link
 10].*

----------------------
footnotes
----------------------
[link 1] http://kaufman.senate.gov/press/in_the_news/
[link 2]
 http://kaufman.senate.gov/press/in_the_news/
[link 3]
 http://kaufman.senate.gov/press/in_the_news/news/?id=9e645644-5056-9502-5d28-0cfa17a7fd34
[link 4]
 http://kaufman.senate.gov/press/in_the_news/news/?id=9e645644-5056-9502-5d28-0cfa17a7fd34
[link 5]
 http://kaufman.senate.gov/press/in_the_news/news/?id=a3799ae6-5056-9502-5d29-51228eba3c2a
[link 6]
 http://kaufman.senate.gov/press/in_the_news/news/?id=a3799ae6-5056-9502-5d29-51228eba3c2a
[link 7]
 http://kaufman.senate.gov/press/in_the_news/news/?id=9e658b88-5056-9502-5d77-9e6a3f9e2f31
[link 8]
 http://www.nytimes.com/2010/08/23/business/23flash.html?_r=2&src=busln
[link 9]
 http://kaufman.senate.gov/press/in_the_news/news/?id=addea920-5056-9502-5d03-51a7660da6e1
[link 10]
 http://randomnotes.newswires-americas.com/?p=7679

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