February 8, 2022
I am a retail investor and I am in favor of this regulation. I merely have concerns about whether such a rule could actually work and be enforced.
Over the past year, it has become clear to me that Reg-SHO is largely ignored by broker-dealers and they continue to move about the market with impunity. Or at best are loosely penalized, with fines representing only a small fraction of the total profits made.
This market is in disastrous conditions. And I doubt that new rules will make the criminal abusers comply. We don't need new rules that won't be enforced. We need to see market manipulators go to jail. We need real consequences.
With no consequences on Wall Street, crime, gross negligence and false reporting have already become the new normal. If no one is held accountable - if there are no consequences - then the day-to-day manipulation will drag the country and your economy into the ground. And that would be a great shame.
It is up to your organization to stop this and make the market fair. Not only for the big investors but also for the small retailers. According to my observations, the retail sector is fed up with this. Trust is easy to lose and very difficult to regain.