Mar. 15, 2023
March 15, 2023
The SEC does not have the resources to determine if all declared bona fide market making activity actually IS bona fide market making activity.
Regulators are relying on these organisations to self report. They have shown many times that they can't be trusted.
Why then does the SEC give these entities exceptions to rules that everyone else must follow.
This kind of preferential treatment is exactly the sort of thing that leads individual investors to believe that the SEC is more interested in creating loopholes and
exceptions for 'friends' on Wall Street, rather than fulfilling their mandate to protect households from abuse of the markets by powerful financial institutions.
While I'm sure this isn't the case, it isn't a good look.
Obviously, this exception will be used to gain some asymmetric advantage and to continue abusing the markets as if they're not regulated.
The rule itself is a good idea, I just wish the SEC would apply it evenly to everyone as, with this exception, it does nothing to regulate the entities who need it most.
Thank you for reading.