Dec. 27, 2022
December 27, 2022 Providing a venue with competition open to all market participants is the foundation of free markets. Making it efficient, with best execution is a must. If we have seen anything from internalized markets (otc securities), they can be easily used to show a price as left hand buys shares from right hand and passes them back. It is so blatantly obvious when 50%+ of your company trades on any given non-news day while the majority shareholder owns 25% of outstanding shares, and over 70% of the total was routed off exchange. Arbitrage and market making is the most effective form of price stability in free markets, but when the marketmaker is capable of widening the spread in otc markets while floating failures to deliver, they sometimes find themselves obligated to purchase entire free floats of companies. How is that going to affect price realization? The answer: in any direction they want, especially when the broker satisfying \"reasonable ability to locate\" (robinhood, ftx) backs their shares with nothing. Until best execution is implemented your share holdings are nothing more than numbers on a screen. What it's backed by could be a promise or \"reasonable ability to locate\" through another company offering tokens \"backed 1:1\" who actually own 0 stock. Backed 0%. You bought air, and that money you lost was rehypothecated down to small niche markets such as collateral loans and private otc orders. Of course otc markets will have a closer spread, and thus a better price than NYSE and lit exchanges. Because this is a casino and its designed to prey on incoming money. When it stops coming in, ships sink. Every time taxpayers pay for softening the blow. Eventually they will have a problem with that.