This is all a part of democracy and freedom of speech so important to a well-functioning government and market. You're encouraged to comment and deserve to have a voice in these matters.
You can read a little more here from Nasdaq and Reuters.
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.
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.
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.
The SEC will review all comments submitted during the open comment period, and generally responds to comments received as part of the final rule-making and not beforehand, a spokesperson for the agency said.
Again, today is the last day to comment!
The proposals are as follows:
File No. S7-31-22; Release No. 34-96495: Order Competition Rule (this has the most pushback, currently, fwtw)
What the rule means (ELIA5):
The current rule allows brokers to send orders directly to Citadel's internal systems, giving Citadel control over the price. However, the new rule states that Citadel cannot be the first to receive orders; instead, orders must go to a public auction where everyone, including pension funds, has an equal opportunity to fill the order.
This gives other market participants the chance to offer better prices, without taking a cut of the trade. As a result, Citadel may lose a significant amount of money, data, and influence. Overall, this rule aims to create a fairer and more transparent market.
SOURCE:
- Press Release: https://www.sec.gov/news/press-release/2022-225
- Fact Sheet: https://www.sec.gov/files/34-96495-fact-sheet.pdf
- Full Text: https://www.sec.gov/rules/proposed/2022/34-96495.pdf
- Other submitted SEC comments here: https://www.sec.gov/comments/s7-31-22/s73122.htm
How to comment with step-by-step instructions:
- Open your email.
- The SEC's email is [email protected]
- Copy/paste this title into the subject line: File No. S7-31-22; Release No. 34-96495: Order Competition Rule
- Some ideas related to what you can say: https://pastebin.com/25gxYr1j
- Rephrase them / write more in your own words.
- Submit.
File No. S7-30-22; Release No. 34-96494; Regulation NMS: Minimum Pricing Increments, Access Fees, and Transparency of Better Priced Orders
AKA – The Tick Size Rule
What the rule means (ELIA5):
The reason Citadel has an advantage is that they can trade at sub-penny intervals on their single-dealer platform, while everyone else is limited to trading in penny increments. This allows them to fill retail orders at slightly higher prices and makes them appear more skilled than other exchanges.The proposed rule would level the playing field by allowing everyone to trade at sub-penny intervals, eliminating this unfair advantage.
Additionally, the rule would reduce the rebates that can be paid, making payment for order flow much less useful. Although the rule wouldn't ban payment for order flow altogether, it would significantly minimise its impact.
SOURCE:
- Fact Sheet: https://www.sec.gov/files/34-96494-fact-sheet.pdf
- Full Document: https://www.sec.gov/news/press-release/2022-224
- Other submitted SEC comments here: https://www.sec.gov/comments/s7-30-22/s73022.htm
How do to comment with step-by-step instructions:
- Open your email.
- The SEC's email is [[email protected]](mailto:[email protected]%22%20%5Ct%20%22_blank).
- Copy/paste this title into the subject line: RE: File No. S7-30-22; Release No. 34-96494; Regulation NMS: Minimum Pricing Increments, Access Fees, and Transparency of Better Priced Orders
- Some ideas related to what you can say: https://pastebin.com/9fU5Qwqw
- Rephrase them / write more in your own words.
- Submit.
File No. S7-32-22; Release No. 34-96496· Regulation Best Execution
What the rule means (ELIA5)
The proposed rule wants to make the stock market fairer and more transparent by promoting competition among different places where stocks are bought and sold.So, say a company's stock is being sold on two different trading platforms. The proposed rule would make sure that both platforms have the same rules about how much the stock price can change at a time, so that neither platform has an unfair advantage over the other.
The rule also wants to make sure that brokers and wholesalers are being honest and transparent when they help people buy and sell stocks. For instance, if a broker has a deal with a particular trading platform, they might be more likely to send their customers to that platform, even if it's not the best place to get the best price. The proposed rule would try to stop that from happening.
Finally, the rule wants to make sure that Alternative Trading Systems (ATS) – which are basically platforms that match buyers and sellers of stocks – are following the same rules as regular exchanges. This would make the market more fair and efficient for everyone involved.
SOURCE:
- Press Release: https://www.sec.gov/news/press-release/2022-226
- Fact Sheet: https://www.sec.gov/files/34-96496-fact-sheet.pdf
- Other submitted SEC comments here: https://www.sec.gov/comments/s7-32-22/s73222.htm
How to comment with (step-by-step instructions):
- Open your email.
- The SEC's email is [email protected]
- Copy/paste this title into the subject line: RE: File No. S7-32-22; Release No. 34-96496· Regulation Best Execution
- Give your opinion or use the previous pastebin ideas.
- Submit.
File No. S7-29-22; Release No. 34-96493· Disclosure of Order Execution Information
What the rule means (ELIA5)
Citadel and Virtu utilize a “price improvement scheme” to attract order flow by claiming to offer the best trades in the market. While their performance statistics seem to support this, they often do not provide the best price available, but rather a slightly better price. This allows them to gain order flow without needing to pay for order flow.
There is a suspicion that they selectively apply the price improvement to benefit themselves. The new rules aim to enforce legal requirements that should have already been in place and mandate more transparent disclosure of their practices to prevent deception. This will help to expose any unethical behaviour and prevent them from taking advantage of the market.
SOURCE:
- Press Release: https://www.sec.gov/news/press-release/2022-223
- Fact Sheet: https://www.sec.gov/files/34-96496-fact-sheet.pdf
- Disclosure Fact Sheet: https://www.sec.gov/files/34-96493-fact-sheet.pdf
- Other submitted SEC comments here: https://www.sec.gov/comments/s7-29-22/s72922.htm
How do we comment to with step-by-step instructions):
- Open your email.
- The SEC's email is [[email protected]](mailto:[email protected]%22%20%5Ct%20%22_blank).
- Copy/paste this title into the subject line: RE: File No. S7-29-22; Release No. 34-96493· Disclosure of Order Execution Information
- Give your opinion/perspective on the matter.
- Submit
Thanks for reading.
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