Mar. 16, 2023
March 16, 2023 Household investors are constantly fighting an uphill battle to stay on stop of market makers, hedge funds, and financial institutions that have a strangle hold on the regulatory aspect of the financial markets. None of these institutions should be able to internalize an order, whether it comes from another institution or a household investor. The order should directly be exposed to order-by-order competition at qualified auction and a \"lit\" exchange where the settlement of the transaction would have an affect of the security in real time. The way the system currently is set up is that an institution will prioritize internalizing orders vs sending them to lit exchanges based off conflicts of interest. If they are hoping to see the price of a security fall in order to turn a profit, they may internalize orders to help relieve buy pressure, and vice versa.