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Re: Why does US SEC's law prohibit using ebay.com or craigslist.org as platform to trade securities ?
John Harris / BondMart Technologies, Inc.
10 Sep 2010 10:06PM ET Mahesh,
Government regulation is anti-competitive in purpose and design. Restraining competition to protect the market positions of incumbents is the entire point of the exercise. The leaders of every new industry will eventually clamor for regulation to raise barriers to entry and socialize the cost of consumer search. Of course regulation isn't sold that way - if its supporters told the truth, regulation would have no political support.
If people could trade securities directly, they wouldn't need brokers. The U.S. securities markets are so rigged in favor of incumbents that it is illegal for ordinary folks to form a securities exchange. Only broker-dealers and persons associated with broker-dealers enjoy that privilege.
Best,
John
> Hi John,
>
> Continued from http://fixprotocol.org/discuss/read/84880800
>
> I would like to understand why US government forbids trading stocks on classifieds.
>
> Regards,
> K. Mahesh
Re: Why does US SEC's law prohibit using ebay.com or craigslist.org as platform to trade securities ?
John Harris / BondMart Technologies, Inc. 10 Sep 2010 10:06PM ET
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