February 7, 2022
As an overseas investor in the US stock market I am deeply troubled to see evidence of market manipulation and the excessive use of dark pools (beyond their intended use) in the stock exchange. I am concerned that true price discovery is impossible with the current behaviour and criminal activity that is allowed.
The fact that the SEC needs public comment on whether or not fraud should be made illegal says a lot about the state of the market today.
I am a retail investor and I agree with this proposed rule. It's hard to have faith in the market when I know I am being defrauded by institutional players. It's not enough to simply legislate, we need punishments to match crimes. If the penalty for commiting fraud is a fine only a fraction the size of the profits from commiting the fraud, then that's not a punishment, it's a tax. if we are to see real reform in our markets and a return of confidence from investors, we need regulation, transparency, and meaningful enforcement/consequences for fraud and other financial crime.