Mar. 23, 2023
March 23, 2023
I would like to see II-E, II-F, II-G removed. Fairness on the U.S. stock market should come first, and exceptions for big players is not the way to do that. If that is not enough argument, I present the following:
II-E: Removed on the grounds that the risk taken on should not be affected by conflict of interest in the first place. Therefore, there should be no exception to mitigate it either. I would even go so far that hedge funds discovered to be engaging in trading activities that have conflict of interest should have their trading rights revoked.
II-F: As an individual investor, I would like to see true price discovery. Artificial liquidity should therefore be brought down, as to reflect true market demand for a security. Thus, conflict of interest is more important to enforce than liquidity,
II-G: Similar argument to the above. Market makers should not be granted exceptions to prohibition of conflict of interest just to provide liquidity.