Mar. 12, 2023
To whom it may concern: The effectiveness of SEC rules depends on the level of enforcement they receive. To make a significant impact, higher fines should be implemented that act as a deterrent. Instead of receiving insignificant fines that are outweighed by their profits, some broker-dealers should lose their licenses. I fully support this rule and any efforts to reduce fraudulent activities that undermine the integrity of American markets. It's important to reduce inducements and "farming" of individual orders for rebate money. Routing orders through a wholesaler first grants them an unfair information advantage, so the Commission should require brokers to route orders to the auction first and specify where the order should go if the auction fails. This would ensure equal knowledge for all market participants. The SEC's mandate is to ensure fair competition among brokers, dealers, and exchanges. For too long, off-exchange systems have dominated the market, leading to monopolistic behavior. This proposed rule is a step in the right direction towards fair competition. Fragmentation of the market only benefits dominant players, so a simple, transparent, and free market structure is preferred. Wholesalers like Citadel Securities have clear conflicts of interest and a history of flouting the law. I would gladly pay more to avoid being routed through them and their influence on other market participants. Removing profiteering middlemen from the market will improve prices for individuals and institutions, saving billions of dollars each year Thank you, Tyler Labrador, a retail investor