Skip to main content

Michael Sadlon Comment On Regulatory Notice 22-08

Michael Sadlon
N/A

As a retail investor, who has been actively trading in the last 2 years and these regulations are very much targeted at, I do not agree with the proposed rule/guidance changes. FINRA has already placed many barriers to retail investors in the form of PDT rules, $25k capital requirements, etc. At no point in my journey as a new trader have I felt that the restrictions benefitted me or protected me and actually feel I have been harmed by the existing limits such as PDT. Learning to trade stocks, options, leveraged ETFs, etc. does take time and requires understanding risk. However, the proposed rules would not act in the best interest of the average retail trader but actively hinder and harm. These types of restrictions on buying or selling are counter-productive, not wanted by the retail community, and in my view do not help newer retail traders. Want to actually help the average retail trader? - Remove or restructure PDT so retail traders don't get trapped in a position. Selling an open position should never be restricted. - Improve transparency and education materials around complex products such as options, LETFs, etc. Some brokers do a great job already like TD Ameritrade with their excellent education center. - Address the use of dark pools or off-exchange purchases that affect the price of equities. Buying/selling an equity should be reflected in the price. - Address PFOF abuse (payment for order flow) and make sure brokers are not taking advantage of retail traders. I hope FINRA will reconsider and cancel these proposed changes and instead work on things like I've discussed. Thank you.