On Mon, 19 Apr 2010 14:48:20 -0800, John R. Carroll wrote:

Trading derivatives on an open exchange would cause the market to work
appropriately.
You'd be able to see the Goldman divisions operating in real time.
Investors aren't stupid, they just can't see in the dark. Transparency
is the key. The CFMA of 2000 turned out the lights.

Agreed, even with transparency it may be hard to compete with them. Do
you know that major stock exchanges sell co-location space in their
computer enters, which gives big players who can afford it a, say, 1ms
latency to the transaction stream instead of 1 s that everybody else
sees? Remember the Russian guy who was arrested for stealing computer
code from Goldman Sachs

http://www.wired.com/threatlevel/2009/07/aleynikov/

He was doing this kind of thing. No wonder GS went ballistic, and FBI
obliged.