(Reuters) The New York Stock Exchange teamed up with retail broker Charles Schwab Corp and market maker Citadel Securities on Monday to ask the U.S. Securities and Exchange Commission to withdraw two recently proposed rules aimed at revamping how stocks trade.
The move represents a coordinated industry push back against what are potentially the most impactful proposals in the SEC’s biggest attempt to reform stock market rules in nearly 20 years.
“We are deeply concerned that the Commission has simultaneously issued multiple far-reaching proposals that would dramatically overhaul current market structure without adequately assessing the cumulative impact on the market or the potential for unintended consequences,” the companies said in an SEC comment letter.
The SEC in December proposed requiring nearly all retail stock orders to be sent to auctions, as well as a new standard for brokers to show they get the best possible executions for their clients’ orders.
The SEC also proposed lower trading increments and access fees on exchanges, and more robust retail order execution disclosures.
And now Citadel, Charles Schwab, and the New York Stock Exchange are fighting against these proposals that will help level the playing field for retail investors.
Payment for order flow has annihilated competition and reserved market maker Citadel Securities the right to buy retail orders from brokers such as Robinhood and TD Ameritrade.
During an interview with SEC Chairman Gary Gensler, the Chairman tells ‘We The Investors‘ that he believes the SEC should have the ‘Best Execution Rule‘, not the self-regulatory organization, FINRA.
Citadel Said in 2004 PFOF Should Be Banned
Citadel pushed back on the possibility of a payment for order flow (PFOF) ban in June of 2022.
But Citadel said in 2004 that payment for order flow “creates conflicts of interest and should be banned”, according to an SEC file.
Gary Gensler said there may be a conflict of interest for brokers and that too much power is concentrated in a handful of market makers.
The SEC Chairman plans to reroute retail investors into an automated system that would provide a deep pool of liquidity.
The aim of the proposed rules is to improve market quality and efficiency, by boosting competition for retail stock orders and reducing unnecessary intermediation, SEC Chair Gary Gensler has said.
However, the NYSE, along with Schwab and Citadel Securities, asked the SEC to indefinitely withdraw the auction and best execution proposals, saying they could lead to less market liquidity and create confusing regulatory overlap.
“We believe that this more targeted approach will result in significant benefits for U.S. equity market participants, while meaningfully reducing the risk of negative outcomes for markets and investors, including the risk of firms retreating from being liquidity providers – which would be particularly detrimental to retail investors,” they said.
Related: Global Head of Operations at Citadel Has a Board Seat at DTCC
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My New Book is Out Now! Use Code: THENEZ
Why do the “criminals” get to decide what regulations are allowed/enforced?
Is it because the SEC Dir used to work for GS – one of the major manipulators of the market? The FTDs should have led to AG/DOJ indictments for stock market fraud (selling fake/unowned shares), but it appears financial industry owns Congress, GOP SC, and controls what regulators are even allowed to consider…
Regular Joe don’t know how this will affect his future, News Outlets are fake paid shills for Wall st every Overseeing body of the Financial System is for WALL ST to win almost everyone worked for Wall st lMarket Maker employees on dtcc board
For.about.the same crimes Madoff gets 150ys prison, 15 years later same crimes
Gets Wall st our money, as FTDs grow
Over a few year truth unfolds to deaf politicians with money stuffed in their asses and in their ears
Its the same Crime as Missouri Man sold a truck he never owned to 80 people
Earned $330.000 from never owning it and Failed to Deliver he will se prison
Citadel and friends committing the same crime, Madoff before the bus took him to
Noticed something was missing after hearing hissing it was gone
Gary Gensler slithering Clown he Crowned Ken Griffin it was later found
Ken’s boys Harrison. Ningh. Yang Ellison were enablers of FTX Crimes,
For that stolen billions they get Probation and remember that TINY FINE
SBF wasn’t bright enough to Fool anyone except Ken Griffins Jester Gary Gensler
Many people profited and still are
The Conflicts of Interest
RICO ACTS and all like Bernie
SBF is the Sacrifice
For Criminals 9f Finance it 1 to blame
SBF is history they return to the game
They convince their victims, they are safe
They steal billions pay a tiny fine.
Take their money offshore go back to politicans and Regulators
Repeat Offenders or Campaign Donors pay their fine before the crime
Great input – thanks for sharing.
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