Mar. 19, 2023
March 19, 2023
I am a household / individual investor and I wholeheartedly support this rule proposal (S7-31-22).
In the current state of equity markets I find more and more frequently that household / individual investors are being taken advantage of. This proposal, should it be accepted, will go a long way to restoring my confidence in the markets which, in my view, have become monopolized by institutional entities, market makers and wholesalers. I think it has great potential to improve competition in the markets and reduce wholesalers ability to scalp household / individual investors.
For too long the Commission has not been enforcing fair competition, especially within the off-exchange systems that currently dominate household stock orders. It's good to see they are beginning to take their mandate more seriously of maintaining fair and orderly markets.
Although this proposed rule is a good start, every rule the SEC passes is only as good as the enforcement that backs it. It will not matter unless the rules are enforced. I would be further encouraged to participate in the markets if I were convinced that the penalties for rule breaking were an adequate deterrent to misbehavior such as instituting fines in excess of the realized profits, revoking broker-dealer licenses, and in extreme circumstances, prison sentences.