Mar. 31, 2023
Dear Securities and Exchange Commission, I am writing to you as a retail investor who is deeply concerned about the unfair advantages that large institutions like Citadel have over individual investors like myself. That's why I strongly support the new rule that ensures orders are not automatically sent to institutions like Citadel, but rather go through a public auction where everyone has an equal opportunity to fill the order - including pension funds. This is a critical step towards promoting fairness and transparency in the market, and I believe it's important for the SEC to continue taking action to level the playing field for all investors. I strongly believe that the US markets should follow the UK's lead in banning Payment for Order Flow (PFOF). It is a conflict-of-interest concern that puts individual investors at a disadvantage and is not in line with fair competition. The Securities and Exchange Commission (SEC) should take immediate action to ensure that brokers cannot prioritize profits over the best interest of their clients. It is time to prioritize the protection of individual investors and ensure that their rights are not being violated in the name of corporate profits. Those who refuse to accept any form of Payment for Order Flow should be rewarded, as they demonstrate a commitment to fair and transparent trading practices. These brokers have been shown to route orders differently, resulting in superior execution quality for their clients. It's time to demand that all brokers adopt this same commitment to transparency and fair trading practices, so that all investors can receive the same level of quality execution. It's deeply concerning that retail investors who avoid Payment for Order Flow (PFOF) receive better prices than those who opt for it. This practice blatantly disregards FINRA's Best Execution guidance and harms the very people that the securities industry is supposed to protect. It's high time that the regulatory bodies step up to ensure that investors are given a fair deal and are not taken advantage of by brokers who prioritize their profits over their clients' well-being. I believe that FINRA must make the findings of its evaluation on the impact of not charging commissions on member firms' order-routing practices and decisions public. It is crucial to promote transparency and accountability in the financial markets, especially when it comes to practices that directly impact retail investors. Making this information public will allow investors to make informed decisions and hold brokerage firms accountable for their actions. It's time for the Commission to take a hard look at the role of middlemen in the market. By removing these profiteering middlemen, prices for both individuals and institutions, including pension funds, can be improved. Auctions can provide a transparent and fair process for executing trades, saving individuals billions of dollars that are currently taken by wholesalers. It's time to prioritize fair competition and transparency in the market, and removing middlemen is a key step towards achieving this goal. The current level of fines imposed by the SEC is often not sufficient to deter bad behavior and rule-breaking in the financial markets. Higher fines must be implemented to send a clear message that misconduct will not be tolerated, and to protect the public from those who seek to take advantage of the system. By raising the cost of breaking the law, we can help to ensure that all participants in the markets operate fairly and honestly, and that the interests of investors are protected. Instead of mere fines that amount to a cost of doing business, some broker-dealers should lose their licenses as a significant deterrent for breaking the law. This will send a message that there are real consequences for misconduct, and it will help protect investors from unscrupulous actors in the market. Thank you for considering my concerns, and I urge you to take action to protect the rights of individual investors and promote fair and transparent trading practices in the financial markets. Sincerely, Ramiro Hernandez