The end of Data Transparency at NYSE

July 1, 12:36 PMPortland Civil Rights ExaminerDianna Cotter

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AP NYSE June 30, 2009

The NYSE has announced the end of Daily Program Trading Report (DPTR). As of July 14th, the NYSE will no longer be releasing real unmodified data. According to ZeroHedge, one of the web’s single most accurate Blogs on Financial Markets, the NYSE has chosen to remove the transparency into all financial transactions happening in the Market.

"The Exchange has filed with the SEC to implement the decommissioning of the DPTRrequirement following the July 10, 2009 trade date. Accordingly, the last required submission of the DPTR will be on July 14, 2009, which is the second business day after the last trade date for which the DPTR is required."

According to Zerohedge, this is in partial response to their reporting of the activities of Goldman Sacs which has of late captured all of the Program trading on the market. This essentially means that each investment bank will be able to sell an asset back and forth raising the price every time until it can find a poor sucker to buy up the investment at that higher price. This amounts to an artificial inflation of an asset, and woe to the poor entity that buys up that asset. And now there will be no way to track it. Welcome to the new land of the unregulated bubble.

Also from the NYSE’s memo:

“In addition, in connection with the decommissioning of the DPTR, the Exchange will not be implementing the proposed redefined program trading account type indicators (J and K) and will continue to use the existing J and K audit trail account types. Upon further analysis and based on industry input, the Exchange has determined that these redefined account type indicators do not enhance the regulatory audit trail because the proposed redefined J and K could subsume some of the other, more granular account type indicators that the Exchange currently receives. Accordingly, the Exchange has determined not to redefine the J and K account types in the manner previously proposed, and is instead leaving the J and K account-type definitions unchanged.”

The translation from Zerohedge:

“Basically this is the beginning of the end of unmodified data transparency. Going forward the NYSE will provide whatever data it feels comfortable, after sufficient internal "audits," and media outlets such as Zero Hedge, which had presented its millions of readers the only data point about Goldman's complete encroachment of not only NYSE but Program Trading, will be henceforth unreliable and likely will present no useful information at all.”

So much for the Obama Administrations pledge of Transparency. Welcome to the land of Obama, where the government tells you what to buy, when to buy, whom you can buy it from, and at what price. So much for any rights of freedom at all. So much for freedom of the Markets. Welcome instead to Obamanomics, and the Obama run SEC.

DPTR Over