Welcome back to the channel everyone today, gary gensler, the chairman of the sec, was interviewed by cnbc and spoke about market structure, dark pools, payment for order flow and even shareholder meetings. This interview was packed full of good information. Trust me guys. You do not want to miss this video, so stay tuned and let's make some money, but guys before i dive into the video.

I just want to give a massive shout out to the 3 300 of you that have currently ding that notification bell, because you guys are always the first to watch a new video as soon as it's released so guys be sure to drop a like down below Subscribe to the channel and ding that notification bell, if you haven't already so that you don't miss another video, just like this one garry gensler started off by speaking quite a bit about cryptocurrency, so i've removed most of that, as it's not really too relevant to the Amc squeeze but potentially in the future, i will start making some more videos on top of my amc content about cryptocurrency and bitcoin, but for now let's hear what gary gensler had to say about dark pools, payment for order flow and market structure. I want to also talk to you about disclosure and, and maybe it relates to the function of memes meme stocks, but crypto probably comes under this as well. You now have a whole new generation of uh of investors, going on tick-tock, going on reddit, going on all sorts of other places, promoting either cryptocurrency or promoting a stock. Where does the sec see their role? In that conversation, i think it's it's the same.

It's been for decades, it's trying to foster good debate and dialogue. Uh, just just like on this program here. Uh about uh investing and the retail engagement is, is positive, um, but also to guard against broad manipulation and whether that's from big actors, big hedge funds, in the markets, um or not, and also to promote transparency. We are taking a real, close look at market structure and i recently started a you know: engaging on twitter and to some of those twitter followers that are writing about dark poles.

We are looking very closely at this market structure that so many of our orders. Retail public orders are not going to the lit markets, but are going to internalizers going to wholesalers who are taking the retail public's trades rather than sending them to the stock exchanges. Hey: hey gary, nothing, your sec, chair! Sorry, i don't want to i don't you know it: either works either works uh, i'm watching uh, bitcoin and and i'm not tying it to anything that you're saying. But i got to tell you that having a regulator or a government official, just that knows what he's talking about in a calm manner uh it's.

I think it's helping allay some fears that you turn on the light when you look into an abyss. But my question is you're a professor. You know how to teach people did you ever think of of maybe i don't know just sending out an email to some of your uh colleagues in dc, whether it be at the fed or in congress or wherever and just saying, hey, i'm going to give a Little seminar on what crypto actually is have you thought about doing that, because i see things from people in a position to do things that show a almost a zero lack of understanding of what we're dealing with here? Why don't you offer to do that? To educate some of uh some of your associates down in that indecency you're kind. I learn every day from talking to my uh colleagues, you learn right now.

Let me just say: i've had wonderful one-on-one discussions with both senators and members of the house. Sometimes in group sessions uh - i i don't want to share, but i i compliment those treasures or discussion on crypto fed chairs, treasury secretaries, senators of uh all everywhere, then secretary yellen convened a terrific meeting where we talked about stable value coins and my colleagues uh uh Chair powell was in the room and and uh uh yelling to mick williams and uh. Chair battle, i mean we were there, the president's working group. We had a really uh engaged uh discussion that she chaired.

Okay, all right, there's hope i wanted to ask you two other quick questions. Uh be while we still have you uh one relates to retail investors and uh. One of the conundrums that we've we've seen now over the last several weeks and months is that they don't seem to vote. When it comes to governance, it becomes, it's become a very challenging circumstance.

So you have a real agency problem and i'm thinking by the way of adam aaron not being able to get enough votes from his amc, shareholders, the apes and then lucid needing extra time to get its shareholder vote for its spac. Do you think of that? As a problem, i think of it as shareholder democracy, that we, the owners of companies - i mean in my current role - i'm not voting any shares, but we, the the shareholders of corporate america, have to be able to engage and and do that in a way. That's uh, of course, efficient and effective uh to express our views, so i i do think about it. A lot and stamp is making recommendations about our uh both of them, but the problem is on the shareholder voting.

But how concerned you the fact that people just don't vote, i mean by the way, which is a feature of democracy, but but maybe a problem in the context of a business. So it's what we're looking at is both making it more efficient, and some of that is on the proxy plumbing side and something that's called universal proxy, making it a little easier to compare, uh, the votes and so forth, and the the ballots um uh. But you're right it to make it more efficient and make it more available. So i personally think that interview is great.

It's great, that gary gensler is concerned about market structure and, more importantly, concerned that pretty much all of retail's orders aren't actually going to lay exchanges. They're being routed into dark, pools and handled and kept by internalizers, so let's talk about each of those different things individually: we've got market structure and payment for order, flow, we've got dark, pools and internalizers, and also we've got shareholder voting all are important to cover. I think it's good that gary gensler is concerned about market structure. Obviously, there's been new bills proposed and passed in the finance committee about market structure and about payment for order flow.

I do think that payment for order flow is a practice that doesn't necessarily invoke the best out of people. That's why it's illegal or why it's banned in the uk and in canada and most of europe as well with the payment for order flow structure. People are incentivized to sell their order flow, even if their customers aren't receiving that best execution price and people paying for that order. Flow can afford to kind of not give that best execution price as long as they pay a bit more for that payment for order flow.

This effectively just isn't synonymous with a fair and free market if people are selling their order flow to the highest bidder, they're. Obviously not going to get the best quality execution, and not only that but they're going to be selling it to the highest bidder, who potentially or most likely, isn't going to actually put those trades through a lick market like the new york stock exchange. But it's instead going to put them through a dark pool or a non-ats. I also think it's good that gary gensler understands just how important it is that trades don't go through the dark pool and do go through late exchanges.

He's evidently aware of just how widespread this problem is. Obviously the sec are currently investigating amc and that's why amc can't comment about its security and about the short selling in line with sec ongoing investigations. Therefore, it looks like the sec is actually doing something and they are actually investigating the malpractice that is going on. I presume they've got an idea of what is going on and they're just writing up reports and getting ready to bring down the hammer july was a record month for new builds proposed and even bills agreed upon and put into practice.

Hopefully, in august we see more of the same and more bills being proposed about dark pools and about actually processing all if not most, of retail trades, actually i'd, rather all of retail trades through lit exchanges. Realistically, i'd like to see some bills proposed and agreed upon. Just to outright ban the use of dark pools, as everybody should trade in free and fair markets, all in the same place, you shouldn't get separate rulings and special treatment just because you're placing larger trades. I also think it's really important to touch on how gary genzo wants to improve the efficiency and the availability of shareholder voting.

The interviewer here made a point that supposedly retail investors don't vote and used examples of amc and lucid motors, and i don't think it's necessarily that shareholders don't vote because, especially with the new safe technologies platform, we are seeing a lot of investors sign up and cast Their votes there, i think what the biggest platform is is that voting isn't really available to everyone. Most people in the uk and in europe and in canada can't vote on u.s securities and there's a lot of platforms like weeble, where it's very difficult to vote in shareholder meetings, because it's not weeble that directly owns the share registration and passes it on to the End customer it's apex clearinghouse that owns the registration and passes it through to weibull, who then passes on to the end customer. Therefore, if you're on weeble - and you want to vote in a shareholder meeting, typically, you have to sign up with apex clearing first and vote through apex clearing, rather than voting directly through weibull. That's why a lot of people are having problems linking their weeble account to save technologies, to vote in the amc.

Second quarter shareholder meeting and effectively tally their shares because, instead of registering on safe technologies and linking your weeble account, you have to register on safe technologies and link your apex clearing account. If you don't have an apex clearing account, you have to create one first using your weeble account number and then link it and it's just a much longer process. So hopefully, gary gensler can also improve the proxy voting process to open up shareholder votes to those in the uk, in europe and in canada as well. I imagine most people would vote in shareholder meetings if they could and if it was much more efficient and easy to access.

I do think it was quite funny how the interviewer here tried to direct the problem of market manipulation to retail traders on reddit promoting stocks. But i also do think it was very, very good. The way gary gensler got it back on topic and actually said that actually it's the big actors and the bad actors like the hedge funds that are most of the problem, not the retail investors on reddit from that. Clearly, gary gensler is on our side and he is doing the investigations it just takes some time considering the sec has probably been doing most of their amc investigation in june july and now august.

Hopefully they should be nearing the end of their investigation, and the sec can start putting rules into place and bringing down the hammer on the hedges. I also wanted to bring to your attention this article about charles schwab, and i was wondering if anyone in the comments had been having the same problem. I tried to buy this dip. I routed my order directly through the nasdaq and got a partial order fill followed by a four minute delay.

Then a cancel for the other 100 shares schwab just confirmed, there's not enough shares on the direct market currently available schwab just confirmed that there were not enough shares available on the direct market for me to buy 200 shares in amc. What does that mean? Why did it cancel after four minutes? Instead of waiting the rest of the day, i asked for an email with the explanation, she's gon na send it and i'll update this post. I just couldn't wait phone records is all i've got for now. She took over 20 minutes after verifying who i was to get an answer.

I got bored and hung up. She called me back. I thanked her for the info and hung up again i freaked out and called her back and asked for that in writing. Here's his actual order where he attempted to buy 200 shares.

He got filled on 100 and then the second part of it actually canceled and just to show how crazy it is. Here's his order type where he routed it directly through the nasdaq and he actually just placed a market order. He didn't even set a limit order. He was basically trying to buy every single share on the nasdaq at any value and they couldn't fill his 200 share order.

Somebody commented saying they just need to make some synthetics real, quick and then they'll fill the order. Somebody else said, but if you send them through pfof and citadel there's plenty of available shares. The original poster then replied saying she said that if i just use schwab.com that it would have gone through as in the schwab spectral routine, but i used the direct routing through their street smart edge, app on the pc and therefore it didn't go through because he Was routing it direct to the market honestly at this point, it really wouldn't surprise me if all of the lit exchanges had run out of legit amc shares to sell and that's why his order didn't go through and that's why we're seeing such low trading volume, because Most of the volume is going through the dark pools with all of the synthetic shares, but obviously not actually going to the late exchanges, because there's no legit shares left on the late exchanges guys be sure to. Let me know down in the comments below what you thought about gary gonzalez interview and his standpoint on market structure and dark pools and how so much of the retail order flow is going through dark pools or being sent to internalizers.

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