Mar. 26, 2023
I will keep this short and sweet. I support more transparency and fairness where supply meets demand and Nothing more. No shifting out of the supply curve, allowing MM exemptions, and false price discovery, or lack there of. The Order Competition Rule is just a start. We need orders to reach the entire market when first placed, not just a market maker or two. There are means to keep prices in certain ranges and when you have MM status/ exemptions and already get a majority of order flow, well lets just say you indirectly can control the price. This is not a free market. There is no reason at all for the worlds biggest brokers to state on a recorded line that they had too much internal risk and that is why they have liquidated your ITM options. As someone who used to work in the front office for years, I did not need Fidelity to liquidate my ITM option contracts on my behalf, insult me when I called them to have the position put back on (market already moved against me), and later close my account. We need fairness in the market where supply meets demand. We are All well aware of Market Maker exemptions and the never ending battle of naked shorts/ synthetics/ FTD’s/ hiding shorts offshore or in swaps, the list goes on and on. What does all the above do? It pushes out the supply curve thus increasing supply of the stock… econ 101. Now what happens when that supply curve comes back to normal to reflect the correct amount of shares. I suppose we will see…but econ 101 says price goes up as Quantity comes back inward. So, it is not retails fault for big $ pushing out the supply curve, thus creating more shares so they can keep certain securities’ price down. It is not my fault that my broker didnt actually hedge my position/ place my actual order. Thats the only reason they'd ever liquidate it. And as they said on a recorded line, mistakingly probably, they had too much internal risk. This happened almost 2 years ago. They actually closed my account right after this occurred as well. They said they couldn't make me happy as a customer so they liquidated my ITM option at the low of the week and closed my account the next week. All but 1 of the 5 reps were smug in their dealing of the situation. So they steal my money and kick me out…fraudulent, no? Can you trust this kind of institution with your money. And mind you, this is the largest broker in the world… Is Fidelity the only broker to do this to me? Sadly no. Another very large broker did the same about 6 months ago on 4 ITM options contracts. They have since refunded the liquidation cost and were a bit more sincere but this is wrong. Fidelity wouldnt even refund the $33 forced liquidation cost though. And other brokers have played games as well. I have more examples sadly. Why is this all wrong? Well, its theft. How is it theft? Simply put when brokers start liquidating ITM options, this changes their hedge profiles, as well those of the market makers/ pb’s. The mass selling of ITM calls (all were for ticker GME), will then push the price of the underlying security, in this case, GME, downward. Imagine they bought puts and shorted at the same time as all the brokers were liquidating ITM calls, and you have yourself a never ending, $ making machine. Them liquidating options can change price one way or another, directly. Are we going to keep allowing this? It appears based on some popular forums that Im not the only one this happens to. Do you want to re-gain the trust of the world or do you want to help lead to the demise of a once free market country and the USD as well. Choice is yours. Everyone has eyes on this and some of us know exactly whats going on. We don't appreciate being robbed from brokers that are supposed to safely keep our $/ securities and we don't appreciate the thieves getting special treatment. Just the cost of doing business. Small fees for breaking the rules. Your kids, your legacy would like a future too. Do not steal that possibility away from all of us. It takes courage to make the right choices. We need it from you now. Its time to help us, not just the 0.1%, but the 100%. Fairness is a must. All our futures depend on it. All rules such as this or Regulation NMS, Regulation Best Execution, and Disclosure of Order Execution are just a start. Ban all pfof, and make sure that FTD’s are force settle asap, no MM exemptions. Just let supply meet demand at the moment the demand arrives. Its basic. Thank you PS: attached are screenshots of Fidelity liquidating my ITM option in a cash account with no restrictions. No, you do not need money in That account to exercise the options. That is the excuse they now commonly give, but thats not the rule in the front office as I learned. You are given time and can wire/ transfer that money in time. I dont want excuses. I want supply to meet demand. I want free and fair markets, a level playing field, for everyone… Sent with Proton Mail secure email.