Mar. 19, 2023
Dear Securities and Exchange Commission, I am writing to express my strong support for the proposed rule that aims to reduce the negative impact of wholesalers and bring more transparency to the markets. I believe that the current state of American markets is clearly anti-competitive and monopolistic, and that the proposed rule is an important step towards promoting fair competition and improving market integrity. I deeply appreciate, and support, any efforts to reduce inducements and to reduce the ‘farming’ of individuals’ orders for rebate money. I think that every rule the SEC passes is only as good as the enforcement that backs it, and therefore, I want to see significantly higher fines that actually serve as a significant deterrent. Some broker-dealers should lose their licenses instead of receiving fines that amount to nothing more than a cost of doing business - a cost that is often outweighed by the ill-gotten gains obtained through “honest mistakes”. I believe that competition is essential for the health of the markets, and that monopolies are detrimental to the interests of investors and the general public. I fully support the proposed rule changes that will promote fair competition among brokers and dealers, exchange markets, and between exchange markets and markets other than exchange markets. The current market is obviously not fair, and the proposed rule is an important step in the right direction. I am concerned about the conflicts of interest involved in the routing of orders through wholesalers. I would gladly pay more per share to avoid being routed through a wholesaler, especially one with a long record of flouting the law like Citadel Securities. The data clearly demonstrates that wholesalers are taking billions from individuals and institutions and calling it "superior performance". If they weren't around to take their cut, the savings would go to citizens and pensions instead of into Wall Street's overstuffed pockets. Lastly, I believe that the fragmentation of the markets makes things overly complicated in a way that only benefits large, dominant players. I prefer a more simple, transparent, and free market structure like the one proposed in this rule. I urge the SEC to consider these concerns seriously and to implement the proposed rule changes as soon as possible. Thank you for your attention to this important matter. Sincerely, Chris Eastvedt