Rampant frontrunning continues to undermine reasonable investors

Markets are unfairly rigged and frontrunning has become the dominant business model of most of the players currently churning in and out of public markets. Let’s be clear: these practices have nothing to do with investing– the purpose for which capital markets were invented. The fact that it is presently considered legal and acceptable underlines how far we have moved away from founding principles of fairness, disclosure and business ethics. Yes lifeguards can decide to allow some swimmers to pay fees to pee in the pool, but eventually all of the other reasonable swimmers will leave and you will be left with nothing but a pointless, toxic, pool of pee. Based on the incredibly low public participation and trading volumes in equity markets today, we are there now. Time to rethink pool rules.

Elite traders can receive early access to consumer confidence data for a fee, reports CNBC’s Eamon Javers. CNBC’s Rick Santelli and Jim Cramer, and Jared Bernstein, Center on Budget and Policy Priorities, discuss.Here is a direct video link.

Also see this report on rampant frontrunning in the currency exchange markets. Here is a direct link. You will need to advance the play bar to 2:33.

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