Need More Regulation on Wall Street!
Once again, Wall Street received bail out from Main Street. By forcing retail traders sell their position unwillingly, brokers selfishly protected themselves. They should feel ashamed. However, this can be a good time to revisit many weak points in our regulatory system. Right now it is in favor of Wall Street at cost of hurting Main Street. With the strength of Wall Street, regulators need to do more to help Main Street.
We need to redefine best execution. When one third of volume goes to wholesaler, it impedes price discovery. The benchmark for price improvement thus hurt. Considering the information advantage of market maker, regulator need to redefine what's best execution. Market maker should give retail investor more price improvement than NBBO!Securities is a monopoly now. An antitrust investigation on Citadel Securities is imminent and necessary. Can you imagine such a systematic important financial company is privately owned.
Curb bonus of big banks. They are receiving free insurance (aka bailout) from Main Street. They can't use their insurance saving on trader bonus. It will only encourage them take more unnecessary risk.
Quarterly 13F is not enough! With the technology advancement, hedge funds do have the ability to release monthly 13F now!
Increase the reward for whistle blower.Misconducts in big banks and hedge funds are hard to discover. You have to make sure insiders feel rewarded to report misconducts.
Wall Street need to report more data to keep market transparent! Especially transactions in dark pool and OTC! Wall Street always refuse to share more information because they make money from information asymmetry! Lower the cost of data! Right now financial related data is absurdly expensive! It creates barrier for Main Street to do their due dillegence!
IPO allocation should lean toward retail investors instead of instructional investors!