January 22, 2022
I would like to applaud the SEC for trying to implement greater transparency.
The argument of transparency hurting HF and MM are nonsensical. If everyone knew what everyone was doing anyway then no one would have the advantage over each other meaning to hide the truth is to have the advantage while market makers trading on retail PFOF data is itself insider information already though MM HF would beg to differ.
The fact is MM and HF using PFOF illegal in other countries to trade off of is already suspect.
In recent years the market makers have made a mockery of the stock market as they continue to do insider trading, HFT, naked shorting though legal if it is within 35 days of trade through finra should be made ILLEGAL and made T+0 instead as we have the technology to do so. I am sure the SEC knows this.
Let us be honest we do not need these market makers. And the fines are far too low towards the illegal activity done. The flat fee is a cost of doing business and rather than flat fines it should be a % of the revenue generated from said illegal operations. 100% of revenue + fines and jail time is reasonable.
Smaller players would be treated the same as well then and would not have complaints if treated the same as larger players.
There should be no entity that is TBTF or TBTJ. Please restore the trust in SEC to bring the markets back to honesty. Thank you.