Rosenblatt Securities Confirms Stock Market’s Slow, Painful Death Rattle

Wednesday, August 25, 2010
By Paul Martin

by Tyler Durden
ZeroHedge.com
08/25/2010

Not only is consolidated stock activity plunging, with Rosenblatt Securities confirming a 50% drop in August action YoY, but ever more are shifting their trading patterns to dark venues. This is yet another checkmark confirming that “stock markets” are nothing more than a venue for institutions to play hot potato with each other, as retail wants nothing to do with this joke of a manipulated market. From Rosenblatt securities:”The bad news is that non-displayed venues are taking a bigger slice of a shrinking pie. August consolidated activity is on pace to fall even more dramatically (~35% sequentially and ~50% YOY), suggesting something beyond just the typical summer doldrums.” In other news, the final draft of the obituary for capital markets is now running through the spell-check.

From Rosenblatt securities:

Dark pools executed a greater share of US equity trades last month as volatility declined from June levels. The 16 non-displayed venues we track executed 10.86% of total volume in July, up from a revised 10.45% in June and the third-highest market share ever for the group. The bad news is that non-displayed venues are taking a bigger slice of a shrinking pie. Aggregate dark-pool volume was 892.6 million shares per day in July, down 8% from the previous month’s 969.8 million. Consolidated volume declined by 11% during the same period and, more significantly, was off 6% year-over-year (see “The Numbers” table on next page). August consolidated activity is on pace to fall even more dramatically (~35% sequentially and ~50% YOY), suggesting something beyond just the typical summer doldrums.

The market, as it was once known, is slowly dying before our eyes. And nobody cares.

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