Comment Text:
Dear Members of the CFTC,
I hope this message finds you well. I am writing to express my concerns regarding the recent proposal, which pertains to the potential vertical integration of certain financial institutions. As an individual investor who values the stability, transparency, and fairness of the financial markets, I am compelled to raise apprehensions about the potential risks and implications this proposal might entail.
The concept of allowing select financial entities to function as exchanges, brokers, and clearing houses concurrently triggers immediate concern over potential conflicts of interest. Such a setup could inadvertently create a tangled web where the interests of these institutions may become entwined, compromising the objectivity and impartiality that are paramount for a healthy and trustworthy marketplace.
The specter of corruption and diminished transparency looms large with this proposal. Instances like the FTX collapse serve as stark reminders of the consequences of unchecked concentration of power. Allowing a single entity to hold multiple pivotal roles could obscure accountability, and history shows us that when lines blur, integrity often erodes.
Furthermore, the recent episodes involving AMC and GME stocks, and the role played by entities like Citadel Securities, underscore the critical need for a clear demarcation between different roles in the market ecosystem. Granting entities the capacity to occupy multiple roles raises valid questions about the potential for undue influence and manipulation, which can erode investor trust and the overall health of the market.
I implore the CFTC to carefully consider the potential ramifications of this proposal. While efficiency is undoubtedly an important consideration, it should not come at the expense of the principles that underpin the integrity of our financial system. Retail investors like myself rely on an environment that is fair, transparent, and free from undue influence.
In conclusion, I respectfully urge the CFTC to exercise caution when deliberating on this proposal. Preserving the separation of functions, enhancing transparency, and minimizing conflicts of interest should remain guiding principles. It is my sincere hope that any decision made will be in the best interest of all market participants and will safeguard the credibility of our financial markets.
Thank you for your time and attention to this matter.
Sincerely,
A Concerned Retail Investor
