May 25, 2010
There are a lot very detailed comments on this board. Both sides have reasons for their opinions. I will not concentrate on the details, as there is many good post of this on the board. I would like draw attention to basic issues facing the markets.
A very simple concept needs to be highlighted. A market structures that heavily favors only the big Broker/Dealer Houses is driving out thousands of different market participants. This is never a good thing in any sector of the economy. The damage in the reduction of real Participants in the markets has increased at a fast pace. This has long term risk and short term risk.
Tens of thousands of individual and company liquidity provider no longer post orders. This is due to the fact that Large Broker/Dealers houses are internalizing orders and sub-penning on a large scale. The market event May 6, 2010 is good example of what can happen when thousands of traders and investors no longer feel comfortable posting orders in the books.
Decisions need to be made that favor not just the few, but market participants as a whole.
Not every market participant will be happy with every rule compromises will have to be made. The fact remains that new rules have to be made and old rules have to be adapted as soon as possible.