December 11, 2015
Markets will not exist if participants do not trust them. The stock market has become a very dangerous and unfair place for investors to participate. Most of the danger and unfair practice comes from HFT's. The SEC has created rules in the past to ensure that the markets are fair and balanced. However, HFT's violate these current rules daily with little recourse from the SEC.
The SEC should allow IEX to become an exchange because markets need to be fair and reliable. IEX creates a fair market because it does not allow one person or company to have an advantage over the other, which is how a market should be and why the SEC exists. IEX exists and has grown so rapidly because investors needed a fair playing field. As they say, necessity is the mother of invention, well IEX was created out of necessity.
The SEC is getting a reputation of being in bed with HFT and being complacent to HFT breaking the laws daily because the SEC is not strongly enforcing their current rules when it comes to HFT. If this continues I would recommend to citizens of the United States to reach out to their congressmen and recommend the SEC's budget be cut significantly if not retracted all together, being that the SEC isn't performing the job it was tasked to do. It would be wonderful if the SEC were to bring back its reputation of creating fair markets and standing up to people or computers who violate their rules such as spoofing and front running orders, which are typical tricks of the trade of HFT's like Citadel and Virtu. The market doesn't need these parasites stealing pennies from each trade, it is an unnecessary tax on investors.
It should be obvious who is violating the markets trust and stealing from market participants, just look at who the primary dissenters are in regards to IEX becoming an exchange (citadel). These will be the firms who have the most to lose if the market becomes more fair and balanced.
I strongly support allowing IEX to become an exchange. The SEC allowing this would be a tremendous boost of confidence in not only the markets but also the SEC.
Thank you,
U.S. Citizen