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Leon Cooperman says SEC needs to investigate computer trading for causing ‘Wild West’ with markets
As reported by CNBC yesterday, “Omega Advisors founder Leon Cooperman on Thursday blamed the Securities and Exchange Commission for failing to address the impact computerized trading has had on the broader market and how it exacerbates volatility during market swings. “‘I think your next guest ought to be somebody from the SEC to explain why they have […]
As reported by CNBC yesterday, “Omega Advisors founder Leon Cooperman on Thursday blamed the Securities and Exchange Commission for failing to address the impact computerized trading has had on the broader market and how it exacerbates volatility during market swings.
“‘I think your next guest ought to be somebody from the SEC to explain why they have sat back calmly, quietly, without saying anything and allowing these algorithmic, trend-following models to wreak havoc with what has, up to now, been the best capital market in the world,’ Cooperman told CNBC’s Scott Wapner on the ‘Halftime Report.’
“‘In the mid-1930s, they instituted the Uptick Rule to deal with the abuses of 1929. It worked effectively for 70-odd years. They took it out in 2008 for some unexplainable reason,’ he added. ‘And they created a wild, Wild West environment in the stock market.’
“John Nester, a spokesman for the SEC, declined to respond to Cooperman’s comments.
“The billionaire’s comments came after the Dow Jones Industrial Average suffered an almost 800-point drop on Tuesday and as the index fell nearly 700 points on Thursday afternoon. The major stock indexes have plummeted in recent sessions as fears over a slowdown in economic growth and the U.S.-China trade war grip market participants. The Dow later recovered the vast majority of its losses Thursday after a report that the Federal Reserve may adopt a “wait-and-see” approach to future rate hikes.”