Tag: SEC (Page 1 of 5)

Virtu is Suing the SEC Over Records Request

Market News: Virtu sues SEC | Doug Cifu.
Market News: Virtu sues SEC | Doug Cifu.

Virtu Financial Inc is suing the SEC, alleging on Tuesday its primary regulator had not responded to a public records request.

Virtu, a market maker with a large equities business, said it submitted a Freedom of Information Act (FOIA) request in June to determine if the SEC had met legal requirements to evaluate potential investor harm and market risks while considering new rules for the handling and execution of retail stock orders.

The SEC declined to comment.

The FOIA request sought, among other things, communications between SEC Chair Gary Gensler and various stakeholders involved in retail stock trading.

“What we’re doing is exercising our rights as citizens … to understand what this Chair is looking at and who he’s meeting with,” Virtu Chief Executive Doug Cifu told Reuters.

“We think it’s important that there be clarity and transparency — that’s what the SEC requires of us as a listed company, so we’re just taking that same standard and saying, be transparent in how you’re dealing with potentially seismic changes to equity market structure,” he added.

Cifu has said Virtu may sue the SEC over other potential rule changes Gensler outlined in June.

What Does the Market Maker Fear?

Virtu SEC Lawsuit Update.
Virtu SEC Lawsuit Update.

The industry has attacked the SEC as several plans to level the playing field for retail investors have been proposed, one being the ban of PFOF (payment for order flow).

Now it seems market makers such as Virtu want to know ahead of time what the SEC is up to in order to act now.

Virtu suing the SEC speaks volumes since majority of retail investors have doubted the SEC has true power to create any change in the market.

I’m curious to know what you think.

Leave your thoughts in the comment section down below.

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Retail Investors are Rising Against Wall Street Corruption

Retail investors are rising against Wall Street
Market News: Retail investors are raising awareness of market injustices.

I’ve been fortunate enough to have seen the rise of retail investors for the better part of 2+ years against Wall Street.

Conflicts of interest amongst Wall Street, banks, and mainstream media were uncovered during the ‘meme stock’ frenzy in January of 2021.

But it didn’t stop there.

Throughout 2021 and 2022, the retail community has raised awareness of market injustices, claiming the SEC’s chairman Gary Gensler has only been complicit to the illicit activities that occur on Wall Street.

The disadvantage retail investors have over hedge funds has never been clearer.

Between naked shorting, FTDs, OTC trading, Dark Pool trading, PFOF, and short and distort campaigns, the cat has been out of the bag.

The question now is what is being done to tackle the problems retail investors are facing?

Wall Street has been able to take advantage of the little guy through the predatorial practices mentioned above with no repercussions from regulators.

Will retail investors continue to rise against Wall Street in 2023?

There are no doubt activists will continue to push reform until there is real change that levels the playing field for retail.

People Are Waking Up to Mainstream Media

Elon Musk has been calling out mainstream media on Twitter for misleading information or ridiculous hit pieces.

The impact Elon is having on Twitter is something that has not been seen.

He’s been able to raise awareness by simply ratioing mainstream media accounts, often times putting them in their place.

People have always voiced their opinions and concerns with mainstream media, but now the people have the biggest influencer in the world backing them up.

Citizen journalism has already been exponentially rising as blogs and independent media websites begin to report what mainstream media is failing to report.

The people are now following more sites such as Franknez.com and Nezmediacompany.com for market news and retail updates.

Mainstream media has been used by big financial institutions to push agendas that cater to their financial interests.

In a CNBC exclusive, Elon Musk says “hedge funds have used short selling and complex derivatives to take advantage of retail investors.”

This is something retail investors who purchased so called ‘meme stocks’ last year found out very easily.

The complex derivatives Elon is referring to could be an array of things such as options trading, HFT, swaps, borrowed stock, and even naked shares.

The Tesla CEO says hedge funds will short a company, conduct negative publicity campaigns to drive the stock price down, then cash out and do it multiple times over.

This tactic is what’s known as “short and distort”.

Hedge funds impose their influence on corporate media such as The Fool, Wall Street Journal, and MarketWatch to scare people out of their money.

How Can Retail Investors Make a Dent?

Wall Street and Mainstream Media | Wall Street corruption.
Wall Street and Mainstream Media | Wall Street corruption.

Retail investors will have to continue to raise awareness when activists and citizen journalism demands it.

But even retail investors have had their better days, with some even refusing to give their viewership to independent hosts and journalists simply due to capitalization involvement.

Retail investors have more power than they know, but it only combats mainstream media when they support citizen journalism or independent hosts working on spreading the truth.

The people will rise against Wall Street corruption, with or without independent journalists and platforms.

Though more can be done with the latter.

Related: Elon Musk: Hedge Funds Tank Stocks Using ‘Short and Distort’

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SEC Spent $460K on “Investomania” Meme Stock Ad

SEC Meme stock ad campaign costs
Market News: SEC spends nearly half a million dollars ridiculing retail investors.

The SEC spent nearly half a million dollars on the ‘meme stock’ ad campaign that ridiculed millions of retail investors.

A Twitter user had sent in a FOIA application inquiring about the costs to produce “Investomania”, the video published on the SEC’s official YouTube channel.

The agency that was established in the early 1930s to protect retail investors took a shot at millions of investors who participated in the ‘meme stock’ frenzy.

The frenzy became one of the biggest movements worldwide and exposed Ken Griffin’s Citadel, mainstream media, and the SEC in a web of conflicts of interest which catered to an array of market injustices that favored institutional investors over retail investors.

“Investomania” was a cold hit to the millions of average people who joined the stock market for the first time.

It ridiculed new investors and diminished what could possibly be one of the biggest movements in market history.

Let’s discuss it.

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Is the SEC Complicit to Market Injustices?

is the SEC complicit to market injustices?
Gary Gensler – SEC Chairman.

The SEC has put retail investor’s concerns on the backburner for over a year now ever since the ‘meme stock’ frenzy of 2021.

Although Redditors and social media participants from around the world managed to create big success by driving up the share price of AMC, GameStop, and others (BBBY, etc.), much much more was discovered during the process.

This is why retail investors simply couldn’t just walk away.

‘Meme stocks’ became the average person’s first-ever investment in the stock market which means many entered plays based on FOMO, or fear of missing out.

When these stocks began to come back down, many faced serious losses in the process.

Those who didn’t take profits argued that the stocks were heavily manipulated and suppressed from further rising.

The U.S. House Committee on Financial Services found Robinhood and Citadel negotiated in ‘blunt’ conversations the night before ‘meme stocks’ were halted.

The DTCC on the other hand waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021.

This act saved institutional investors from taking further damages and completely ripped off retail investors from either cashing in larger profits or becoming profitable in the first place.

The SEC Shows a Warm Welcome to New Retail Investors

SEC Chairman Gary Gensler said in an interview with Jon Stewart that they barely have the budget for coffee at their agency, let alone the budget to fight crime in the market.

Dark pools, off exchange trading, and various other loopholes have been used to work against retail investors feeding the pockets of multi-billion-dollar hedge funds.

Many have wondered whether the SEC or Gary Gensler himself is lobbied into allowing these market injustices to occur – a fine to play if you will.

Out of all the incredible findings retail investors have brought to surface, the SEC decided to spend nearly half a million dollars to ridicule retail investors – the very same people they swore to defend, instead of tackling real market issues.

A Twitter user shared the campaigns production and advertising expenses with the retail community.

U.S. Securities and Exchange Commission FY22 Public Service Campaign.
U.S. Securities and Exchange Commission FY22 Public Service Campaign.
'Investomania' advertising costs.
‘Investomania’ advertising costs.

The costs of the “Investomania” meme stock advertisement campaign also include skits on ‘crypto’, ‘margin calls’, and ‘easy money’ aimed at the retail crowd.

Former SEC Branch Chief Lisa Braganca stated she was “very disappointing to see SEC disparage investors in meme stocks as if they must have done it thoughtlessly”.

“Especially when the SEC permits most trading to take place in dark pools… how about a video about dark pools @GaryGensler?”

Leave your thoughts below

Is the SEC complicit to the market manipulation that’s occurred over the decades?

What do you think was the purpose of the SEC’s ‘Investomania’ meme stock advertisement campaign?

Was it merely fun and games or do you think it was out of line?

Leave your thoughts below.

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Citadel Has a Long History of Market Manipulation

Citadel Market Manipulation
Market News: Citadel and friends are entering the crypto space | Ken Griffin.

Citadel and friends are entering the crypto world very soon.

EDX Markets plans to bring ‘traditional finance’ to the crypto space, a not so ‘traditional’ space to begin with.

The exchange made up of Citadel, Sequoia, Paradigm, Virtu, Charles Schwab, and Fidelity is debuting in November.

EDX Markets will start trading a limited number of spot, crypto tokens starting with a November trial period, with the official launch in January, per Bloomberg.

Similar to trading equities and options, EDX will allow investors to buy and sell digital assets through their existing broker dealer, rather than an outside venue or directly through a crypto-native exchange. 

“We’re taking some of the best features of traditional finance and bringing it to the digital markets to make it more efficient, and bring that cost saving to investors,” Nazarali said.

Nazarali is the former global head of business development at Citadel Securities.

But as many are aware, these financial institutions have a long history of playing unfair.

Will these sharks taint the crypto space too?

Let’s look at Citadel’s market manipulation history.

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Citadel Market Manipulation

2015

In 2015, an account operated in China by the brokerage arm of US hedge fund Citadel was suspended.

It was the latest casualty of regulators’ hunt for market manipulators and short sellers at the time.

The China Securities Regulatory Commission said that the Shanghai and Shenzhen stock exchanges had suspended 24 accounts as part of a probe into high-frequency trading.

The investigation focused on a practice known as “spoofing” in which an investor submits a buy or sell order but then withdraws it before a sale is completed — a practice that can mislead investors by creating the false impression that a stock is trading at a particular price.

Citadel confirmed that one of its accounts managed by Guosen Futures was among those suspended.

2017

SEC Citadel

In 2017 Citadel paid the SEC $22.6 million to settle charges of misleading conduct.

The hedge fund misled customers about the way it priced trades.

The SEC found that between 2007 and 2010, Citadel used two algorithms to execute stock trades on customers’ behalf that gave investors a worse price for their trades, even when Citadel knew better prices existed elsewhere.

“This affected millions of retail orders,” said Stephanie Avakian, the acting director of enforcement at the SEC at the time.

Citadel neither admitted nor denied the findings.

2021

In 2021, Failure-to-Delivers (FTDs) rose dramatically in the period leading up to January 28th, 2021, a phenomenon consistent with increasing short interest by market makers such as Citadel Securities.

FTDs are indictive of naked short selling, which occurs when a short seller does not actually possess the security it is supposed to borrow.

This practice is largely inaccessible to individual investors but accessible to market makers.

At the time, Citadel, Robinhood, and others restricted retail investors from buying ‘meme stocks’ in order to prevent escalating institutional losses.

Citadel eventually lost billions after betting against AMC Entertainment in 2021.

But the entire system needs a refresh – The DTCC waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021, saving brokers, and screwing up retail investors.

2022

The Chicago Tribune published a piece explaining exactly what retail investors have been warning the SEC about.

Citadel Securities’ dark pool dominates a big part of the financial world, accounting for as much as half of U.S. stock market activity.

The Chicago Tribune says this prominent dark pool is run by Chicago Billionaire Ken Griffin’s Citadel Securities and has been targeting small scale retail investors.

And they’re not wrong.

Dark pools are typically involved in payment for order flow (PFOF), where they pay broker firms to receive retail order flow.

Brokers such as Robinhood and TD Ameritrade accept payment for order flow.

But retail investors have been bringing these nefarious practices in the market to light.

Leave a comment below

Leave your thoughts in the comment section below.

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Shoutout to @EduardBrichuk for compiling some of this information on Twitter.

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AMC Becomes One of The Most Purchased Stocks

Market News: AMC becomes one of the most purchased stocks on Fidelity
Market News: AMC becomes one of the most purchased stocks on Fidelity

Wall Street is baffled as AMC becomes one of the most purchased stocks on Fidelity in the past week.

Mark Taylor from Mirabaud Securities says “the ‘smart guys’ are confused and fighting from a position of weakness.”

But has the retail community really been that covert?

The retail community has been fighting against market injustices for over a year now, which a lot has been an effort to drive short sellers out of ‘meme stocks’ such as AMC and GameStop.

‘Meme stocks’ have been suppressed by market makers and short sellers in order to prevent the stocks’ high demand from causing further losses.

It was reported AMC short sellers had lost more than $1 billion this year so far.

Are retail investors about to deliver another blow to Wall Street?

Let’s discuss it!

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AMC breaks $20 again

AMC Entertainment stock has broken the $20 levels again.

It’s going to have to hold well above $26-$27 if retail investors are to see it beyond $30 again.

AMC had peaked to $27.47 during the pre-market but underperformed like majority of stocks.

While trading volume in the past two days has been over 100m, today’s volume showed signs of cooling momentum.

Still, AMC is holding around $22.50 relatively well.

Shareholders are loading up on the stock prior to the new dividend distributions.

AMC will be distributing 1 APE stock for every 1 AMC share investors hold.

The new security will be tradable in the market and will provide the company with liquidity to pay down their debt and raise cash if need be.

For investors, a cash cow that may significantly grow in value.

This incentive is attracting more investors to buy the theatre chain stock and causing confusion amongst short sellers.

But there’s one thing mainstream media isn’t discussing, and that’s that retail activists and shareholders aren’t going anywhere.

Some folks truly don’t know

The retail community might have been painted as degenerates that originated from the Wall Street Bets Reddit forum and that what happened last year simply happened.

But that’s not the case at all.

The activist community has grown and has aimed at the SEC for its incompetence in market structure.

Marketing campaigns have sprawled on the streets of Chicago calling out Citadel’s Ken Griffin for market manipulation and Gary Gensler for allegedly being complicit.

Even the DTCC is under fire by retail investors yearning for change in the market.

The Depositary Trust & Clearing Corporation (DTCC) had its windows covered with flyers that read – DTCC, Disgraceful, Thieving, Complicit, Committee “allowing financial crimes under their watch”.

The market manipulation that has suppressed ‘meme stocks’ such as AMC for over a year now have prevented the stock from squeezing the big players from the game.

Loopholes have raised the attention of millions of investors who simply want to participate in a fair market where supply and demand dictate price action, not market makers and complicit regulators.

Some folks don’t truly know this, but this is a new breed of retail investors.

‘Meme stocks’ become beacons for change

So why are people becoming obsessive with stocks such as AMC and GameStop?

It’s because in today’s world, people are obsessed with real positive change.

For change in their daily lives, change in the financial lives, and change in the markets for the future generation.

Wall Street will very soon notice it’s time to pass the torch.

Finance is changing, culture is changing.

This is why AMC stock has become one of the most purchased stocks in the market.

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Retail Investors Petition to Fire SEC Chairman Gary Gensler

Petition to fire Gary Gensler
Market News: Petition to fire Gary Gensler surfaces in retail community.

Retail investors have gotten together and started a petition to fire SEC Chairman Gary Gensler for obstruction of justice.

The SEC Chairman is believed to be complicit to the market manipulation occurring in the day-to-day stock market.

Gary Gensler admitted in a Bloomberg exclusive that 90%-95% of retail orders do not go through the lit exchange, such as the New York Stock Exchange (NYSE), but rather through foreign exchanges, or dark pools.

Retail’s concerns have fallen on deaf ears as market maker and hedge fund Citadel remains in operation.

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Retail demands Citadel investigation

retail demands citadel investigation
Citadel’s Ken Griffin.

The market maker and hedge fund, who also has its own dark pool, is responsible for processing almost 50% of retail trades.

How do they receive this many orders?

Through a process called PFOF, or payment for order flow, where the institution pays brokers such as Robinhood a fee for retail orders.

Citadel then profits from retail as they exchange these orders through foreign exchanges where they can get a better deal, pocketing the small spread.

But that’s not all.

Citadel is short on AMC Entertainment stock, one of the most popular stocks amongst the retail community aiming to squeeze short sellers from their positions.

Investors have looked at Gary Gensler for solutions to the stock’s suppression, but the SEC has only made fun of the retail community; and now they want him out.

Change.org

change.org fire gary gensler
Change.org | Petition to fire Gary Gensler.

Retail investors are now demanding for change.

But retail aren’t the only ones to stand up to the SEC.

Tesla’s Elon Musk has been very public about the SEC’s incompetence and has even spoken out against short sellers and malpractices used to short his company in what he calls short and distort tactics.

These same tactics have been used to drive retail’s favorite stocks down despite big demand for the stock.

Retail investors are rising to market injustices and are demanding the SEC Chairman step down and Citadel receives a proper investigation.

You can sign the petition to fire Gary Gensler on Change.org here.

The petition has already received more than 14,000 signatures.

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Citadel Paid SEC $22.6 Million to Settle Charges of Misleading Conduct

Citadel Paid SEC $22.6 million
Market News: SEC and IEX go after Citadel years after charges of misleading conduct.

In 2017, Citadel paid the SEC $22.6 million to settle charges that it misled customers about the way it priced trades.

The SEC found that between 2007 and 2010, Citadel used two algorithms to execute stock trades on customers’ behalf that gave investors a worse price for their trades, even when Citadel knew better prices existed elsewhere.

The SEC penalized Citadel for failing to disclose the use of those algorithms to clients.

“This affected millions of retail orders,” said Stephanie Avakian, the acting director of enforcement at the SEC at the time.

Citadel neither admitted nor denied the findings.

Today, Citadel has lost the court case against the IEX order type crippling its trading strategy, more on that down below.

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Citadel cheats retail investors

Citadel has been cheating retail investors for years now through a variety of loopholes the SEC has failed to stop.

The market maker is responsible for processing almost 50% of retail orders.

Citadel receives these orders by paying brokers such as Robinhood in what’s known as PFOF, or payment for order flow.

The problem arises when these orders are then traded through foreign exchanges allowing Citadel to pocket the best trading bid, essentially stealing from retail.

They accomplish this through HFT, or high frequency trading.

And because 90%-95% of retail orders are not executed through the lit exchange (NYSE), it gives Citadel’s short positions a massive advantage against retail investors going long.

This means only a small fraction of the demand is truly reflected in a company’s share price.

What is currently being done about the market manipulation?

SEC Citadel

The SEC has publicly discussed the possibility of banning PFOF for good, but the industry has lashed out.

In October of last year Citadel sued the SEC over the new D-Limit order that would protect displayed lit orders from being picked off by latency arbitrage players.

IEX is an exchange that relies heavily on the D-Limit order to outperform displayed order prices on other exchanges.

This means that predatory strategies such as market arbitrage, where high frequency firms profit from lower prices in foreign exchanges, will no longer be able to do so.

High frequency trading has been used against retail investors to not only gain better prices on stock from other ‘slow loading’ exchanges, but by also using this advantage to sell stock significantly cheaper.

So when you find an exchange that is showing lower prices, hedge funds betting against certain tickers may borrow high in another exchanges while benefiting the difference from selling the stock in those displaying lower prices.

The D-Limit order uses AI technology that provides more consistent and accurate data across all exchanges.

How will IEX affect Citadel?

how will IEX affect Citadel

In short, Citadel Securities and other high frequency trading firms will lose a lot of money.

The reason being is they are making money every second from using this high frequency trading technology to their benefit by getting better prices than anyone else in the market.

The IEX Exchange would put Citadel Securities in the same courtyard as retail investors, leveling the playfield.

IEX would create a foundation for a fairer market.

Citadel paid the SEC $22.6 million to settle charges on misleading conduct in 2017, but karma seems to be catching up for the hedge fund and market maker.

On July 29th, 2022, it was announced that Citadel has lost the court case against the IEX order type.

This is massive win for retail investors and a huge blow to the market maker and hedge fund.

But the SEC still has a lot of work ahead, especially if they’re looking to earn the trust of retail investors.

Only time will tell how significant this battle truly is.

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Sources: Reuters.

Related: Citadel Loses Court Case to IEX Order Type

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Citadel Loses Court Case to IEX Order Type

Citadel Loses Court Case to IEX Order Type
Market News: Citadel Loses Court Case to IEX

BREAKING: Citadel Securities just lost the court case to the IEX order type.

The ruling is a notable victory for IEX and a blow to Citadel Securities, which profits from small differences between the bid and ask prices in a trade.

(Bloomberg)—Citadel Securities LLC lost its case against the US Securities and Exchange Commission over a market order type from IEX Group Inc., after arguing the SEC botched its approval. 

A trio of federal judges in Washington on Friday upheld the regulator’s decision on the order type, D-Limit, which features a 350-microsecond delay meant to reduce the advantage of high-frequency traders.

The electronic trading firm founded by billionaire Ken Griffin argued that D-Limit hurts investors by delaying their orders and that the SEC approval process broke the laws and rules that govern it.

This is big news.

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A massive win for retail investors

iex order type

This is a huge win for retail investors and of course a big victory for IEX.

Citadel Securities, which profits from small differences between the bid and ask prices in a trade, will be losing a lot of money.

IEX, which markets itself as a champion of fairness in pricing for the average investor, began offering the discretionary limit order in October 2020 after the SEC stood by it in August. 

In suing its own regulator, Citadel Securities—one of the top market makers on the exchange—had asked the court to send D-Limit back to the SEC for reconsideration and reversal. 

Investors had no update on this case until now, Citadel loses the court case to IEX.

“The SEC’s determination that the DLimit order does not violate the Exchange Act by unfairly discriminating or unduly burdening competition was reasonable and supported by substantial evidence,” the court found.

Citadel Securities spokesperson David Millar said in a statement: “We look forward to continuing to engage with the SEC to ensure that the best interests of both retail and institutional investors are protected.”

IEX had no immediate comment on the court’s decision.

The SEC didn’t immediately respond to a request for comment. 

What Is The D-Limit Order?

The D-Limit order is designed to protect liquidity providers from potential “adverse selection” by latency arbitrage trading strategies.

This rule basically gives traders a way to buy or sell stock at the exchange while protecting them against unfavorable price moves, via Reuters.

“The D-Limit Order is an artificial intelligence order type that protects displayed lit orders from being picked off by latency arbitrage players.”

“It aims to benefit displayed equity market quotes with better prices, larger displayed sizes and more competition among liquidity providers.” via, JLN.  

This order is a massive threat to Citadel as it takes away predatory trading through the practices of market arbitrage.

What is Market Arbitrage?

Market arbitrage is the act of buying a security in one market and simultaneously selling it in another market for a higher price.

Traders frequently attempt to exploit the arbitrage opportunity by buying a stock on a foreign exchange where the share price hasn’t yet been adjusted for the fluctuating exchange rate, via Investopedia.

This type of trading takes advantage of everyone involved, including retail investors.

Citadel personnel argued that the D-Limit rule is detrimental to millions of retail investors and undermine the reliability of the markets.

Citadel Loses Court Case to IEX Sources: Chicago Business

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Gary Gensler, Ken Griffin: Involved in Audit Quality Scheme?

Center for Audit Quality (CAQ)
Market News: Center for Audit Quality (CAQ) conflicts of interest

Not only has Gary Gensler been complicit to ongoing manipulation in the market, but he seems to be part of a scheme that starts at the Center for Audit Quality (CAQ).

The conflict of interest is unreal when you have a big hedge fund owner and regulator in the same funding board, and a chief who either doesn’t get it or is part of this scheme.

Joe Ucuzoglu of the CAQ and Citadel’s Ken Griffin are part of the same funding organization, The Kennedy Center Corporate Fund Board.

The Corporate Fund Board is a nationwide partnership of distinguished business leaders (i.e., Ken Griffin) from prominent corporations (i.e., Citadel), helping mobilize corporate partners and secure critical funding.

Joe Ucuzoglu is the Chief Executive Officer at Deloitte US, leading the largest professional services organization in the United States.

According to the Center for Audit Quality (CAQ), Joe Ucuzoglu frequently speaks on a broad range of current issues facing the business community including the regulatory landscape.

You see the conflict of interest here?

What a mess.

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What is The Center for Audit Quality (CAQ)?

CAQ Center for Audit Quality
Center for Audit Quality Scheme | Gary Gensler speaking at CAQ

The CAQ is dedicated to enhancing investor confidence and public trust in the global capital markets by fostering high-quality performance by public company auditors.

The CAQ also convenes and collaborates with other stakeholders to advance the discussion of critical issues requiring action and intervention, and advocates policies and standards that promote public company auditors’ objectivity, effectiveness, and responsiveness to dynamic market conditions.

In simple terms, the CAQ works for the big guys to discuss critical issues they are undergoing and solve the problem(s) to fit their required market conditions.

The problem here is it leaves the retail investor out and caters to financial investors instead.

Gary Gensler CAQ

SEC Chairman Gary Gensler is in charge of protecting retail investors but seems to be enamored by his title rather than the actual work it takes to tackle market injustices in a number of conflicts of interest.

CAQ CEO background

As CEO, Lindsay is responsible for carrying out the mission and vision of the CAQ’s Governing Board, which is comprised of CEOs from eight leading public company auditing firms, including Joe Ucuzoglu’s Delloitte US.

Julie Bell Lindsay served as a Managing Director and the Deputy Head of Global Regulatory Affairs at Citigroup, a bank who’s been fined several times for fraud in the past decade.

Julie joined Citi in February 2009 as General Counsel – Capital Markets and Corporate Reporting, where she was the lead lawyer responsible for Citi’s public disclosures and global capital markets activities.

Prior to Citi, Julie served as Counsel to Commissioner Cynthia Glassman at the US Securities and Exchange Commission, where she counseled the Commissioner on all matters relating to public company disclosure obligations, corporate governance standards, the Sarbanes-Oxley Act of 2002, the Public Company Accounting Oversight Board and Financial Accounting Standards Board, enforcement matters, and issues affecting registered foreign companies. 

The Center for Audit Quality sounds more so like a lobbyist group than anything else.

But I’m curious to hear your thoughts.

Leave a comment down below.

Shoutout to @EduardBrichuk for the puzzle pieces on the matter.

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SEC Delays Audit Reform That Would Protect Investors To 2024

SEC Delays Audit Reform That Would Protect Investors to 2024
Market News: Consolidated Trail of 2016 delayed until 2024

The SEC has delayed an audit reform that would protect retail investors from nefarious practices in the market to 2024.

Opponents, including SEC Commissioner Hester Peirce want to scrap the entire project.

Hester Peirce is tied to a lobbyist group of anti-regulators.

Quite a contradiction being an SEC Commissioner if you ask me.

Keep reading below to find out how delaying this audit reform is a direct violation of retail investors’ rights.

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Consolidated Audit Trail of 2016

SEC News: SEC Delays market reform until 2024
SEC News: SEC delays market reform until 2024

In 2016, the SEC approved a rule to establish the Consolidated Audit Trail, which would capture data on customers and orders for exchange-listed equities and over-the-counter (OTC) securities across all U.S. markets.

The system would provide the SEC with an enormous database of information to help the agency detect and quickly react to events that disrupt the markets and could potentially harm retail investors.

Brokerages were supposed to begin collecting customer information for the CAT this month but in May, Finra delayed implementation of the CAT customer and account information system until the end of this year.

However, in an order on Friday, the SEC pushed back implementation of some SRO reporting obligations until July 2024.

“The CAT, a project designed to give the Securities and Exchange Commission and other regulators comprehensive market insight, has proved much harder and more expensive to implement than anyone anticipated,” SEC Commissioner Hester Peirce said in a statement.

“I have grave concerns about the whole project. The dollars, distraction, dissension, and drain of endless meetings over the past several years of CAT implementation are reasons enough to reconsider the entire project; the risks to liberty and security posed by the project should compel us to do so.” – Investment News

OTC trading goes unregulated until 2024

SEC News

Over-the-counter trading has been a real issue in our markets.

It’s allowed financial institutions to trade retail’s orders outside the lit exchange (NYSE), making it susceptible to market manipulation.

These markets are unregulated which leads to less public information and the possibility of fraud.

Delaying this market reform means the SEC is pushing a decade of complacency since the reform’s introduction in 2016.

Something the SEC is very good at.

The question is, how long does the SEC think they can continue to delay market reforms before investors take matters into their own hands, and into the streets again.

I’d love to hear your thoughts on the matter.

Leave a comment down below.

Is the SEC pushing it a little too far now?

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Related: Is the SEC Complicit to Market Injustices?

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