It has become apparent to millions of investors in companies like AMC and GME that Citadel and other hedge funds are abusing dark pools to buy via dark pools in order to avoid creating buying pressure on the public market, then selling on the public market to create selling pressure thus driving the price down. Because they can essentially manipulate the price in this way their abuse them extends to options. Today, July 22, 71% of transaction too place in the dark pool. At one point this number was as high as 92%. The retail investor is simply powerless against dark pool abuse. Additionally, FINRA has no reported up-to-date numbers for AMC, causing the retail investor not only to be powerless but also to be largely in the dark. At present these dynamics do not make for a fair and open market. Millions have become aware of this and millions more waking up to this. Unless very timely changes are made this crisis will deepen.
Jeremy Rhode Comment On Regulatory Notice 21-19
It has become apparent to millions of investors in companies like AMC and GME that Citadel and other hedge funds are abusing dark pools to buy via dark pools in order to avoid creating buying pressure on the public market, then selling on the public market to create selling pressure thus driving the price down. Because they can essentially manipulate the price in this way their abuse them extends to options. Today, July 22, 71% of transaction too place in the dark pool. At one point this number was as high as 92%. The retail investor is simply powerless against dark pool abuse. Additionally, FINRA has no reported up-to-date numbers for AMC, causing the retail investor not only to be powerless but also to be largely in the dark. At present these dynamics do not make for a fair and open market. Millions have become aware of this and millions more waking up to this. Unless very timely changes are made this crisis will deepen.