Gary Gensler just announced exclusively on Bloomberg that 90-95% of retail orders don’t go through the lit exchange.
The SEC Commissioner says these orders are rerouted to dark pools rather than the NYSE.
It’s a year after the ‘meme stock’ frenzy that the community receives this official news.
The ‘ape’ community has been labeled as conspiracy theorists but have proven to be correct time and time again.
Will synthetics finally be uncovered?
And how soon will AMC and GameStop squeeze?
Welcome to Franknez.com – Gary Gensler just confirmed the market manipulation that the ‘ape’ community has been exposing all year. Ladies and gentlemen, this means AMC’s share price is synthetic…
Let’s get started!
Gary Gensler on Bloomberg
SEC Chairman and Commissioner Gary Gensler says payment for order flow is partly the reason why orders aren’t processed on the lit exchange.
He says retail orders go to wholesalers on an order-by-order competition.
Citadel’s Ken Griffin has praised PFOF stating it’s good for retail investors.
However, PFOF allows market makers to process retails orders in the ‘dark markets’, or dark pools.
This means retail buying volume is out of sync with AMC’s actual share price.
AMC’s share price is synthetic, it only reflects a small portion of buying volume.
Market Makers have been stealing from retail investors
Market makers have been stealing from retail investors with absolutely no consequence from regulators.
Now that the cat is out of the hat, what is going to be done about it?
How does one account for all the orders that have been derailed from the lit exchange market and fix the share price to reflect the correct amount?
Banning PFOF is one thing but what about the money that has been masked by dark pools?
Will these financial institutions be held accountable for financial treason?
The integrity of the stock market has been tainted for far too long, now it’s time to take action.
Will PFOF get banned in the U.S?
According to Gary Gensler, PFOF is banned in the UK, Canada, Australia, and in Europe.
However, because the U.S has a very strong capitalist economy, it could prove to be difficult.
Gensler says, “I think it’s natural that we look to say, how do we drive great competition and efficiency in this market, and use the tools that congress has given us.”
Here the SEC Chairman is saying their solution is to find someone who can compete with these market makers rather than banning PFOF in general.
We’ve seen these efforts through the IEX exchange D-Limit order.
IEX is a lit exchange that reflects much more accurate share prices and eliminates the predatorial strategies used by market makers and hedge funds.
These strategies include PFOF and high frequency trading.
Retail wants orders processed through the lit exchange
The SEC is supposed to be protecting retail investors from nefarious market practices.
Therefore, it is the SEC’s duty to find a solution and locate the money that retail is missing.
Retail wants orders processed through the lit exchange.
Market makers do not have the consent to move retail money through dark pools or other foreign markets.
Gary Gensler on “meme stocks”
Gary Gensler is going to have a response for the retail community next week and touch topic more specifically on “meme stocks”.
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