Mar. 12, 2023
Dear SEC, I am writing to express my support for the proposed rule allowing public auctions and taking away order routing from Citadel. I believe this rule will be an important step in reducing speed games that damage the integrity, credibility, and functioning of American markets. Moreover, it will bring more transparency to dark markets, and investors will have easy access to what is happening within the markets. I strongly support the Commission's efforts to reduce the unfair advantages of certain market participants, such as the profound information advantage granted to wholesalers by the current order routing system. It is unjust and anti-competitive that 90% of marketable orders of individual investors in NMS stocks go to a small group of six off-exchange dealers, and 66% are captured by just two firms. This monopolistic behavior must change, and this proposed rule is an important step in that direction. I believe that competition is good and that fair competition among brokers and dealers is necessary for the protection of investors and the maintenance of fair and orderly markets. The current market is obviously not fair, and this proposed rule is an important step in the right direction. Wholesalers have a clear conflict of interest, and I would gladly pay more per share or commission to avoid being routed through a wholesaler, especially one with a long record of flouting the law like Citadel Securities. Wholesalers are lying about the quality of their services to maintain their profits, and it is clear that removing them from the market will improve price discovery for both individuals and institutions. I urge the SEC to implement this proposed rule as soon as possible. Every rule the SEC passes is only as good as the enforcement that backs it, and I want to see higher fines that actually serve as a significant deterrent. Some broker-dealers should lose their licenses instead of receiving fines that amount to nothing more than a cost of doing business. The current state of American markets is clearly anti-competitive, and that needs to change. The proposed rule will help bring about a more simple, transparent, and free market structure that benefits all investors and the public interest. Thank you for considering my comments. Sincerely, Antonio Chavez