February 7, 2022
Market makers have an inherent conflict of interest when they are allowed to naked short a stock while at the same time, controlling order routing, dark pool usage and employing blatant price manipulation to ensure a favorable outcome for their own positions.
These positions should be public, and not self-reported. The SEC should act as a consumer protection entity for retail if they wish to ensure a fair market. While rules/regulations may exist to prevent illegal actions listed above, the enforcement, deterrence and consequences need actual teeth.
Small fines for breaking the law will not change the behavior of the bad actor. Thank you for accepting comments on these issues.