September 18, 2009
Dear SEC Commissioners:
I am greatful that flash orders will be banned by the rule under consideration. I think it is truly sad that they ever existed. We need to make the market fair for everyone and this is one way to do it.
I however think that it doesn't quite go far enough, it is apparent that what your getting at here is reducing friviolus trades and reducing people's ability to take advantage of the market. I for one would suggest that the rule go further and require stock transactions to settle before a trader may sell the same stock again. As I understand it someone can buy something one minute and five minutes later sell the item.
This is not legitimate sales of securities, this is gaming the system and leads to emotional and non-rational results such as sensational swings in both directions. I feel that stocks and securities purchases must have a minimum hold time of a couple days (3 days for example) and that sales should be subject to graduated fines/fees for dollar amount when trades are made short of transactions settling.
As someone who lives on the west coast, i don't have access nor the time to follow the markets on a minute by minute basis, i think it is only fair that we slow the pace of the market so that we de-priorities large instutitional investors from gaming the system and make markets more legitimate and work for all of us.
I support the rule change, but just wish it went further. Thank you for your consideration.