Fixing The Market

Discussion in 'Trading' started by Lucias, Dec 3, 2011.

  1. Lucias


    I propose the following steps to restore confidence in the market.

    1. Require all OTC products to be listed. Bring full transparency to the markets. Charge those who sell overly complex products with intent to get one over on the buyer with fraud.

    2. Shut down dark pools.

    3. Define HFT trading by both time-in-market and cancellation percentage. Eliminate predatory HFT trading by charging cancellation fees and/or requiring a minimum time window so that shown liquidity must be provided for a time period. No outright cheating should be allowed. HFT trading is currently being defined as anyone who trades actively. This is false and misleading.

    4. Grant access for US citizens to trade on exchanges world wide. End the Chicago/NY banking cartel.

    5. End the revolving door between Washington and the banks.

    6. Create 100% protection for US futures customers for protecting their money in accounts. Require the CME/industry to fund it.

    7. End the loophole that allows Washington to trade on inside information.

    8. Investigate all exchanges to ensure they are in compliance with stated rules. Who knows someone doesn't work for an exchange and front run the orders? Think about that incident with poker where they created a cheat to see the players hole cards.

    Please let me know what you think. Please let me know also if you disagree with any suggestions and why. These are just some ideas. I'm not an expert on any of these issues but just thinking about things that may be wrong with current system.