SEC Chairman Gary Gensler was asked some hard-hitting questions by the podcast host Jon Stewart. Many of the responses focused on Gensler wanting to do the right thing but having limited resources. Here is a summary of the conversation.
What happened: Former Daily Show host Jon Stewart Gensler asked questions about dark pools, direct stock registration, naked selling and crypto regulation.
steward voiced Frustration from retailers who have submitted questions for his The Problem With Jon Stewart podcast, which is part of his deal apple inc AAPL for a show of the same name on AppleTV+.
We’re talking direct stock registration, Stewart asked“Why not just register every stock purchase?”
Gensler blamed the existing system.
“Most stocks in the US, the majority of stocks in the US, are held on behalf of the broker,” Gensler said.
Gensler said he shares retail investors’ frustration, but things are moving slowly.
“Part of that is the set of rules that we hope to propose in the near future.”
Stewart asked Gensler about payment for order flow, a controversial practice used by stockbrokers to send trades to a market maker for execution against payment. Stewart asked Gensler if this was a conflict of interest.
“It’s a conflict,” Gensler replied.
Gensler also admitted that there is “no level playing field” in the stock market.
Stewart asked Gensler why the SEC can’t ban order flow payment if it’s a conflict.
Gensler reiterated that resources were limited and some of the culprits in this case could not be targeted.
Related link: SEC targets retail investors, meme stocks in new video
Why it matters: Gensler’s interview helped share some frustrations from retail investors, but provided little response from the SEC chairman.
“The frustration isn’t about what you do, it’s about what you don’t do,” Stewart said.
Stewart noted that Gensler and the SEC are frustrating…
