December 22, 2011
This proposal is much needed and long overdue. As an active individual investor, I have encountered many instances over the last couple of years where I entered orders during slow periods which were only partially filled even though at the moment I entered the orders, substantially more size was indicated than the size of my order.
As an example, the an offer may show "50" indicating 5000 shares for sale at a price of 20. On many occasions in many different stocks I have entered orders similar to this to purchase a smaller amount, say 3000 shares. I typically get a partial fill of say 1400 shares and the quote becomes bid at 20.01 or higher, above my bid, instantaneously.
These bids are reckless and are clearly meant to deceive. I am hopeful that this proposal will ban that practice. I trade many stocks that behave like this and I would be happy to show you some live examples if you would like.