SEC chief warns of growing monopoly power among market makers, retail brokers at GameStop hearing

Securities and Exchange Commission Chairman Gary Gensler on Thursday warned lawmakers that growing concentration in the securities wholesaling and brokerage industries could lead to market “fragility,” and increased costs for retail and institution investors.

“We’ve seen such concentration come in other markets,” he added. “We know it’s in search, where we all go online and there’s really one dominant search engine and we know it’s true in retail products online.” The episode raised public awareness of the growing power of market makers like Citadel Securities that execute a growing percentage of retail trades at the expense of stock exchanges like the New York Stock Exchange or the Nasdaq NDAQ, +0.02%. Citadel Securities says that it executes 47% of all retail trades in U.S.-listed equities and options.

One force that may be driving concentration, Gensler suggested, was the practice of payment for order flow, whereby market makers like Citadel Securities pay brokers for the privilege of executing customer orders. Gensler said that market makers can glean valuable intelligence about the market through increased order flow, which enables them to pay better prices for future orders, creating a positive feedback loop that leads to greater concentration.

Sounds like a control freak - Fed.

In other words, retail investors learned how to make to much money, we are going to try to stop that. Bye bye Wall st I already left and you keep this up Everyone's going to leave the market.

The expression should be more direct and clear.

Leave my cryptocurrencies alone!

horrible

Time to give your boss a call. Citadel

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SEC chair Gary Gensler testifies before House committee on GamestopGary Gensler, the new chairman of the Securities and Exchange Commission, takes questions from the House financial committee about the wild moves many saw in stocks like Gamestop earlier this year.
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