April 19, 2022
As a retail investor, if I sell something I don't have there are severe legal consequences. For market makers, they have T+2 as a standard and then a FTD. There are minimal penalties and the buyer gets no compensation for being on the receiving end of a FTD.
In the modern age of computerized transfers, everything should be settled the same day. It should be harder to sell things you don't have and not easier. There should be stiff penalties, something like 100x the purchase price per share for FTD.