So the SEC has gone after naked shorting as well as all shorting of financials to protect public companies. Our dear Christoper Cox had acknowledged the main damage was done by intraday trading and not by naked shorting. Well any daytrader who monitors level 2 often for low volume stocks notices there is sophisticated bid/ask software that works against the retail traders throughout the day. Is this done by the MM? Or by a hedge fund(s)? Answer: it's the market maker who operates this software, and at best, the hedge funds etc. hire the MM's for their prime brokerage services. Here is a powerful indication of the same: In the wake of the SEC's ban on shorting of financials, I was carefully watching DRL, which is a commonly manipulated stock for intraday trading given its low volume. DRL rose nicely as people loaded up on DRL, noting there can be no more shorting or short manipulations. DRL perhaps would even get back to the $20 range where it belongs. But what happened? After the stock goes up from $13.50 to $18, it goes all the way down to $10.50 with no news, but yes intraday manipulating. Who was doing the shorting (noting the longs hardly have any shares.)? Answer: yours truly, the MM!!! Conclusion: The SEC's actions are a waste, and only benefit the MM's--and at the expense of the retail trader who believes he's protected when he's not. If there is real interest to protect companies & people, it would seem to me banning the MM's (and not the hedge funds & retail traders) is the right approach!