James Cushman Comment On Regulatory Notice 21-19
This is great and all along with all the new regulations by the SEC, DTCC, FINRA, etc. However, these regulations are toothless in nature and are either not enforced by regulators who look the other way or they impose a very minimal fine that does not affect the institutions violating the law. There are a set of rules for the retail investor then there is a set of rules for market makers and hedge funds. Things such as naked shorts, dark pool trades, and a general lack of transparency make it seem as if the entire stock market is nothing more than a glorified ponzi scheme to screw the masses out of their hard earned money and funnel it to the Wall Street elites with no discourse or any reaction from authorities. It makes retail investors lose confidence in the market as a whole. I suggest harsher penalties and liquidation of over-leveraged market makers who violate laws and regulations. Confidence needs to be restored back into the market or droves of Americans will leave them entirely. This can be done by actually enforcing the laws that exist and regular audits of low character market makers who engage in such acts as naked shorting. Any organization guilty of naked shorting or even having the appearance of naked shorting should be audited and if guilty, instantly liquidated. Look at this way, if a bank was guilty of counterfeiting fiat currency, they would be instantly shut down. How is counterfeiting shares ok? Again, consumer confidence in markets is at stake here. Because of COVID, market makers and hedge funds have made trillions shorting the US economy. Their greed will collapse the US market if not held in check. They have an unfair advantage in the flow of information and retail only gets scraps of info.