Mar. 19, 2023
Public auctions are necessary for competition to exist in US markets. As of now, there is no competition and investors are not getting best price execution nor are they receiving proper price discovery for the securities they are buying and selling. There should be greater transparency with FINRA. Order routing practices and decisions should be made public. This is necessary to protect the markets. Broker dealers should lose their licenses instead of receiving fines. The purpose of the fine is to stop this type of behavior. However a fine makes the activity worth the risk because the activity still has to be discovered by regulators. This puts undue strain on regulating bodies that are meant to protect the markets as all broker dealers will then risk being discovered in order to profit off of rule breaking. However, if loss of license was the consequence for rule breaking then broker dealers would act professionally in the markets. Broker dealers would not risk losing their license.