Mar. 23, 2023
March 23, 2023 I believe any exemption to the proposed rule must be made with exceptional care to ensure not just the stability and smooth functioning of the market, but also to lock out any avenues of misconduct by bad actors. It has been demonstrated time and again that, when given an inch of leeway in which to operate, bad actors in the financial sector will take ten miles. It would be an act of willful ignorance to permit a market maker such as Citadel Securities, who also operate a hedge fund, to benefit from an exemption as proposed on page 10 of this document. It is a matter of when, and not if, the two branches of such a company will collude to enrich themselves at the expense of investors. The providing of endless liquidity hinders the true price discovery of an asset. Assuming good faith will be exercised by financial institutions who have proven repeatedly in the past that they will always act in their own interest is negligent. To this end, I assert that no exemption to this rule should be made for risk-mitigating hedging activities, bona fide market-making activities, or liquidity commitments as specified in Section 27B. To say that there is 'potential' for the exception to be abused implies that it 'could' happen, when it is a certainty that it indeed would happen. Thank you for your time.