Mar. 23, 2023
March 23, 2023
When learning about this prohibition against conflicts of interests, I was disappointed to see this proposal would include exceptions for the following:
Risk-mitigating hedging activities
Bona fide market-making activities
Liquidity commitments
Exemptions are loopholes, whether intended or not, and create incentive to pursue or recategorize activity to take advantage of said exceptions, to minimize oversight. Certainly the major market players those 3 activities target are aware of conflict of interests and would ptefer to hide them, to maximize profits and competitive advantages. You should continue with this proposal but cut out the exemptions.
Rules should create a level playing field. Adding exemptions instead creates two groups, those who benefit and those who do not.
Certainly, reading the comments of this and many previous proposals, the SEC must be acutely aware that you have an unprecedented movement of several generations of retail investors that are shouting from the mountaintops for there to be more fairness, equity, and transparency in the markets of this nation. We see the value of a robust market that is fair and free. Please demonstrate that you are still willing to pursue these core principals and remove the exempt activities from this proposal. In its current form, I do not support it.