Hello all, I strongly believe that a huge step in the right direction would be to remove Market maker status from ALL institutions that either own or are a hedge fund themselves. (ex: Citadel ) The whole fact that a hedge fund or investment institution of any kind can be granted market maker status is wrong. It is an undeniable conflict of interest and the current market status is proof. My idea is to either remove the status/rank or dial back the privilege’s of market makers. This would include: -Ability to produce shares to artificially create liquidity, this has proven to dilute a companies poll which in turn can be abused. There are literally hundreds if not thousands instances happening at the very moment. Just to name a few companies who have had their pools diluted in a predatory fashion- $AMC, $GME, $TRCH now $MMAT, $SPCE, $HCMC, $CUEN, $MRIN, $XELA, $KOSS, $BB and hundreds more. Remove the ability to infinitely reset the Failure To Deliver timer. Force collateral requirements to be met with money or physical shares. No using options contracts as collateral, if they want to use options then they must exercise the contracts to obtain the shares to fulfill their requirements. This also goes for shares that are held on margin, since you technically do not own the share when it is held on margin. If a company would like to be a market maker then they should be a stand alone entity to avoid any initial conflict of interest.
Bruce Lewis Comment On Regulatory Notice 21-19
Hello all, I strongly believe that a huge step in the right direction would be to remove Market maker status from ALL institutions that either own or are a hedge fund themselves. (ex: Citadel ) The whole fact that a hedge fund or investment institution of any kind can be granted market maker status is wrong. It is an undeniable conflict of interest and the current market status is proof. My idea is to either remove the status/rank or dial back the privilege’s of market makers. This would include: -Ability to produce shares to artificially create liquidity, this has proven to dilute a companies poll which in turn can be abused. There are literally hundreds if not thousands instances happening at the very moment. Just to name a few companies who have had their pools diluted in a predatory fashion- $AMC, $GME, $TRCH now $MMAT, $SPCE, $HCMC, $CUEN, $MRIN, $XELA, $KOSS, $BB and hundreds more. Remove the ability to infinitely reset the Failure To Deliver timer. Force collateral requirements to be met with money or physical shares. No using options contracts as collateral, if they want to use options then they must exercise the contracts to obtain the shares to fulfill their requirements. This also goes for shares that are held on margin, since you technically do not own the share when it is held on margin. If a company would like to be a market maker then they should be a stand alone entity to avoid any initial conflict of interest.