Dec. 26, 2022
December 26, 2022
I believe this new updated amendment to Rule 605 of Regulation NMS will be good for the overall markets. Since the introduction of a lot of HFT(high frequency trading) systems and algorithms, order executions are much better and improved to handle a lot more than what the original proposal of Rule 605 was created for.
The amendment to creating new order type categories and order size categories will help for better execution in the lit market exchanges. These new amended categories will help these systems better execute customer orders for broker-dealers and ensure competition.
The amendment for broker-dealers to also require reports for their customers will help with providing transparency and competition so retail investors choose a broker that aligns with their best interests. Ultimately, any amendment that allows for better transparency, and more scrutiny towards broker-dealers and market maker's abuse of financial instruments and loose SEC regulations will help create a more competitive and fair market for all investors, both individual and institutional. There have been many decades in which the more privileged have driven the markets to absolute degeneracy due to the incessant greed of individuals and groups, the over leveraging of parties, and the abuse of naked short selling to drive American companies bankrupt as a way to pad their profits, which ultimately have led to the destruction of the Middle Class via predatory borrowing lending and the irresponsible fiscal and monetary policies of the central banks.