Mar. 24, 2023
As an individual investor in the American stock market, I am in favor of rule proposal No. S7-31-22. A fair and competitive market cannot exist if 90% of orders are routed to wholesalers that will just internalize and manipulate stock prices in their own favor. As an individual investor, it is concerning that most orders go through a handful of wholesalers notably Citadel. This gives them not just money but also data and influence. If things do not change and this rule does not pass, our markets will remain monopolistic and continue to enrich market makers who have had record breaking profits this past year while household investors across the board have only suffered. Orders should be routed to a public auction instead. As a household investor, I do not mind paying an extra fee so that my orders do not immediately go to a wholesaler. Pay for order flow (PFOF) has been banned in the UK due to conflict-of-interest concerns and should be banned in the US as well. While this rule would help set the tone for change for a fairer market, if these rules are not enforced or if the SEC fines continue to be only a fraction of what market makers make by violating this rule, the American stock market can only be seen as farce and household investors will have to find an alternative investment vehicle that will not just siphon away their extremely hard-earned money. Some broker-dealers should lose their licenses instead of receiving fines that amount to a cost of doing business. -Concerned American