Mar. 30, 2023
Dear Securities and Exchange Commission, I am writing to express my views on the regulation of Alternative Trading Systems (ATS) in the securities market. As a concerned investor, I believe that ATS should be subject to stricter regulations to promote fairness, transparency, and competition in the market. Firstly, I strongly suggest that ATS should disclose detailed information on their operations, conflicts of interest, and customer order handling. This will help investors to make informed decisions and ensure that ATS operate in a fair and transparent manner. Furthermore, ATS should have policies in place to prevent fraudulent and manipulative practices. These policies should be monitored and enforced by the SEC to prevent any abuse of power. It is also essential that ATS provide data on the execution of orders, order routing practices, and the use of dark pools to the SEC. This information will enable the SEC to monitor the market and ensure that it operates consistently with the broader regulatory structure of securities markets. To promote fair pricing across trading venues, I recommend implementing a variable minimum pricing increment model for NMS stocks. This will help to reduce the price disparity across different venues and promote fair competition. Additionally, I suggest putting a cap on high commissions or fees in lieu of Payment for Order Flow (PFOF) charged by brokers. This will prevent brokers from abusing their market power and ensure that investors are not charged excessive fees. Competition is necessary to regulate markets, and I believe that barriers to competition should be removed. This will encourage innovation, improve the quality of services, and ultimately benefit investors. Finally, I urge the SEC to prioritize creating a competitive market structure that benefits investors and encourages transparency. This will help to restore trust in the securities market and promote long-term investment. Thank you for your attention to this matter. Sincerely, Marco Biesemann (Retail Investor)