April 22, 2022
This is a blatant attempt to hide naked shorts and allow bad actors who hurt retail to avoid scrutiny and having to settle risky unethical bets. This is NO WAY to solve the ongoing problems in the market.
This proposal would harm retail investors by giving another advantage to market makers and hedge funds who would be able to stretch short squeeze situations out indefinitely and reset FTDs forever.
The premise is preposterous that retail should take ALL the risk and banks and big money should have every advantage in robbing them blind for the sake of liquidity. If you really wanted to solve problems youd make the fine for FTDs 300% of the value of the FTD and limit darkpool trading to 10% or less of total daily volume in any given security.
If there is no liquidity, price should go up, thats how a free and fair market works. The circus thats currently being observed is a sham, where untouchable crooks are stealing every day with ZERO concern about being caught.
The fact this is even proposed is shameful. Liquidity is NOT the most important ingredient, unless of course being paid for the transactions is your main goal.