Apr. 16, 2026
Subject: Formal Comment on File No. 4-887 – Conflict of Interest in Liquidity Provision Body: A fundamental conflict of interest exists when a single entity acts as both a "Market Maker" (tasked with maintaining a fair and orderly market) and a "Proprietary Trader" (tasked with maximizing firm profit). The record profits of $12B+ in the sector indicate that firms are prioritizing their proprietary gains over market stability. I propose a "Glass-Steagall" for market making: firms should be legally required to choose between providing liquidity or trading for their own account. They should not be permitted to profit from the volatility they are tasked with stabilizing.