February 7, 2022
The USA claims to have a 'free market' in which investors holding multi billion $ positions are on the same playing field as the retail trader with positions as low as the hundreds of $.
I find this notion to be categorically false. Evidence of crime is so blatant, and until now I believe that retail traders have been largely ignorant of the underhanded tactics used to siphon money away from hard working individuals, to further line the pockets of already wealthy market makers and their investors.
There is a clear disparity in the information available to retail traders compared to the market makers, clearing houses etc. who are some of the main culprits in this racket. The same information available to them should be freely available to all participants in this market. No amount of transparency in the market is too much. Everyone should be able to make a totally informed decision regarding their investments with correct information. Participants found in violation of any rule or regulation should be severely punished.
This brings me to my next point. New rules are good and seem to be pointing in the right direction, however historically it is clear that the punishments relating to breaking these rules (i.e. breaking the law) have been totally unsuccessful in regulating the markets. Participants willingly break these rules for personal gain as they know the fine they are charged is less than the profit they steal. How is that supposed to deter criminals? They look at the fine as a cost of business. Punishments need to be steeper for those found in violation. The fines need to be an amount which is never less than the profit a firm has received from their criminal actions. Repeat offenders need members of the C-suite to receive harsh prison sentences. The punishments need to be severe enough that they are an actual deterrent so there is no benefit to any firm or trader committing financial crime.
I believe trust in the American stock market is dwindling and only after the public see that the regulatory agencies are on their side (we the people), through strict enforcement of rules set out by the SEC and others, will this trust come back. This rule is a step in the right direction for transparency in the market, but it means nothing if it is not enforced.