Mar. 31, 2023
As a retail investor, I am deeply concerned with recent SEC enforcement of regulations, or lack thereof. Rules with only fines as an enforcement have proven to be an ineffective deterrent and have little to no effect on stopping institutions from abusing the rules. When the fine is a measly few % of the total profits gained from the illegal action, it just becomes a cost of business as opposed to a punishment. I fully support this rule and its intended purpose. 15 U.S.C. 78k-1 (“section 11A”) states that "It is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to assure ... fair competition among brokers and dealers, among exchange markets, and between exchange markets and markets other than exchange markets."For far too long the Commission has not be enduring fair competition, especially within the off-exchange systems that currently dominate the market. I appreciate any efforts made by the SEC to encourage true market competition and help eliminate the monopolies that have developed within the markets and to prevent unnecessary middlemen in the transactions that serve no necessary purpose other than to get a cut of the commission. It is clear to me how removing the profiteering middlemen from the market will improve prices for both individuals and institutions such as pension funds. Research recently performed by Hittal Mittesh suggests that on top of the Commission's estimate that the auctions would save individuals from billions of dollars taken by wholesalers, it would also save institutions over $1.5 billion each year. Wholesalers are taking from citizens AND people's pensions - that needs to stop immediately. This is an unnecessary drain on the markets and must be prevented in the interest of household investors everywhere.