Subject: S7-11-23: Webform Comments from Duke Watson
From: Duke Watson
Affiliation:

Sep. 9, 2023

Given the way that broker dealers have been operating the
last decade with all of these fines you could certainly say some are
drunk on acceptance waivers and consents. It's disgraceful and
the fines issued by the SEC for some of their actions that took place
repeatedly for years is even more egregious. So much money has
literally been stolen from cheating by these entities and the investor
never gets justice or a dime of these SEC fines. 

Looking at the balance sheets of lets say Citadel Securities and
seeing the figure of "Securities sold not yet purchased"
compared to their assets, how does the SEC calculate when this number
is a systemic risk? From December 31 2022 their total assets were
63,115 billion and their total liabilities were 58,744 billion with
45,764 billion being Securities sold not yet purchased. It
doesn't take a mathematician to see that this is a powder keg,
but considering Citadel is a Market Maker, Hedge fund and has an ATS
they can run these risky numbers on the brink of collapse because they
control the entire price of a stock and the SEC allows it in my
opinion. It's been exposed with these so called Meme stocks that
the sec wants to throw pies in retails faces over but just the crazy
price drop in Amc before and after the reverse split and conversion is
evidence of major market manipulation that will probably result in a
slap on the wrist years down the road. If only the SEC wouldn't
keep delaying the CAT system for how many years now? Millions of
shares can trade in a day on AMC and we can't even move the price
up a dollar but looking at these major candle drops like September 6th
at 8:25am a 165k volume dropped the price $1.25 from $13.61 to $12.36.
I could cite more instances of major drops on low volume but it's
mathematically impossible to have such small volume bring down the
price so much without market manipulation when OBV is going up,
Certain brokerages are showing buys to sells 3 to 1 and utilization
was maxed out; that is to say if we truly had a fair regulated market
which we don't. AMC was on the threshold securities list for the
third time this year and this most recent time was 50 days. When
reading the rules on Reg Sho, how is this even allowed? Another loop
hole for the 1% just like they can take away the buy button when they
are losing? It's allowed because the SEC emits the illusion that
they are for the retail investor when actually they only care about
the well being of the 1% in my opinion. The sentiment I saw on Gary
Genslers tweet advising retail to come comment on this proposal was
"Why waste my time when the SEC doesn't enforce the current
rules and turns a blind eye to the corruption on the SO CALLED meme
stocks"

So yes I support monitoring these entities every single day whom I
consider liars and thieves because they have pushed the entire
financial system to the brink of collapse and you have sadly allowed
it to get to this point. PFOF only favors one party and it aint
retail. We're happy to pay a transaction fee to have our order go
to a lit market. The short reporting of twice a month is antiquated
and a systemic risk as well considering the capabilities of HFT. More
importantly the FTD's HAS to be addressed and can no-longer be
allowed. It's just terrible that FTD's are even allowed but
then again this is the U.S and again they don't benefit retail.
This infinite liquidity and market maker exemptions on locates has
destroyed our market and bankrupted countless companies and certainly
needs to be reigned in. The SEC has slacked off for so long and
allowed so many entities to push their balance sheets to the brink of
collapse that they would bring the entire system down with it if they
fail. So by doing this they have forced you to allow their cheating to
continue in my opinion instead of letting them collapse. That's
the only way I can rationalize why you overlook rules already in place
and continue to allow blatant market manipulation to continue. What
needs to happen is some individuals need to go to jail and all of
their assets even the ones stashed in the Cayman Islands need to be
confiscated. This runs all the way up to the top to the owners of the
DTCC and I'm hoping to see a move of God soon to bring about
righteousness.