September 8, 2010
I would like to comment on the current (completely electronic, zero accountability) trading structure that was put in place when you eliminated the NYSE specialist.
The markets are broken! By eliminating the specialist and his complete accountability for the stock, and moving to a system where multiple participants are accountable, you have made NO ONE accountable.
The Flash Crash would have been just a slightly worse than normal down day if there had been someone there that was obligated to step in and provide liquidity, furthermore, in the current system it is to easy for each participant to step aside in time of distress and say "I am not going to buy it, you buy it." In addition to that, under the current system computers have to much control, With out the specialist there to be the dominant participant, which begs the question... who is controlling the computers??
Shapiro said this "The structure of today's markets undoubtedly offers many advantages. And, we should not attempt to turn the clock back to the days of trading crowds on exchange floors."
What advantage is she talking about? I have been trading the markets actively for over a decade, and only noticed a disadvantage when they eliminated the floor with the hybrid.
The markets will continue to worsen unless stability and control is brought back to them in the form of a singular, dominant, participant.
Who do I send this to?