Apr. 09, 2021
To whom it may concern,
As a domestic investor with 100% of my portfolio (over 6 figures) in the U.S., we must continue to have faith and belief in the U.S system which has hitherto given us confidence in taking these risks.
We rely on you, the SEC and other regulators to ensure some of the most powerful market makers and participants in the world don't abuse your precious yet fragile financial system.
Systemic risks are clearly present, and they disproportionately affect the "smaller" investor. Payment for Order Flow, for example, effectively enables the front running of the retail investor while simultaneously giving power to largely unregulated market makers like Citadel. How do we know they are not absorbing buy orders with their own "stock" and routing sell orders to the public markets thus manipulating the price?
These types of practices are outlined in the EU for a reason.
The U.S. has the most powerful economy with the most exciting growth prospects, which excites investors and businesses. It would be a shame, as an understatement, if these were to be threatened by volatile and systemically risky practices in the financial system.
We've learnt in the past ('08 and before) that these systemic risks could do; not just to the financial markets but the entire economy. It is your responsibility to prevent this; will we learn from history?
Progressive and reformative legal and regulatory actions seem to be only taken after a crisis has occured. Let's work on doing these actions before such crises can occur.
I fully support these rules which aim to further transparency, and reduce systemic risk which poses a threat to the economy, financial markets and retail investors; both home and abroad.
Kind regards,
Caleb S.