Actions by the SEC over recent decades have, perhaps unintentionally, encouraged the development of markets which seem to favor the most technologically sophisticated traders. The current market structure appears to be the consequence of regulatory structures designed to increase efficiency and thereby provide the greatest benefits to the highest volume traders. The implications of the current system for buy-and-hold investors have not been the subject of a thorough analysis. I believe the SEC’s rules have effectively placed "increased liquidity" as a value above fair execution of trades for all investors. [1] quoting a memo from Senator Edward E. Kaufman (D-DE)…
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