Jul. 5, 2024
As an individual investor, I express my unequivocal support for the SEC's proposed volume-based exchange transaction pricing rule for NMS stocks. The integrity of our financial markets is at stake, and this rule is a crucial step towards restoring fairness and transparency. The data speaks for itself. Robinhood Financial LLC has been fined multiple times, with penalties reaching millions of dollars for investor protection violations, privacy violations, and anti-money-laundering deficiencies. These violations highlight our financial systems; urgent need for stricter oversight and regulation. Furthermore, the disturbing influence of financial contributions on our lawmakers cannot be ignored. Eight congressmen attempted to stop the SEC's inquiry into FTX, and it is no coincidence that five of these individuals received donations from SBF and FTX. Similarly, Kenneth Griffin, who testified before the House Financial Services Committee regarding the GameStop controversy, has donated to four committee members. This kind of financial influence undermines the very foundation of our democratic processes and regulatory frameworks. The systemic issues extend beyond individual cases. Wall Street's six biggest bailed-out banks have received $8.2 trillion in bailouts, faced 351 legal actions, and paid nearly $200 billion in fines and settlements. Yet, they continue to operate with little to no deterrent from engaging in risky or unethical behavior. This proposed rule is essential to prevent further abuses and ensure that high-volume members do not retain an unfair competitive advantage over lower-volume members. The proposed rule addresses significant concerns about the competitive disadvantages and conflicts of interest inherent in volume-based pricing. Lower-volume members are often forced to route orders through higher-volume members to achieve better pricing, creating a self-reinforcing cycle that concentrates order flow among a few large players. This concentration stifles competition and poses a significant risk to market stability. Moreover, the complexity and lack of transparency in current pricing schedules make it nearly impossible for the public and regulators to fully understand and comment on them. The proposed rule enhances transparency and allows for more informed regulatory oversight and public scrutiny by requiring exchanges to disclose the number of members qualifying for each volume tier. It is time for our regulators and lawmakers to prioritize the interests of the public over the financial contributions of powerful institutions. The SEC's proposed rule on volume-based exchange transaction pricing is vital to ensure that our financial markets operate fairly, transparently, and in the best interest of all investors. I urge the SEC to implement this rule without delay and to continue taking steps to restore trust in our financial systems. We cannot allow financial institutions to rob us and then force us to bail them out. There should be no acceptance waivers or non-prosecution agreements for entities that repeatedly engage in illegal activities. If no one is truly above the law, then it is time to hold these financial giants accountable for their actions.