Securities and Exchange Commission (SEC)

QUICK LINKS:
- Departments
- Concerns and Issues

Purpose

Regulate the securities industry, protect investors, maintain fair, orderly, and efficient markets by overseeing securities exchanges and brokers, and ensuring transparency in the market.

Mistakes

Right now, if a person makes a mistake, they are allowed to simply correct it. This makes trusting the market hard to do when a financial company is allowed to backtrack a failing investment and claim it as a mistake. Instead, every trade should be linked to a specific person (via name or token). If the trade has a mistake or is in error in any way, they receive a black mark and must undergo training by the company. If they receive three black marks over a seven year period, their licensure will be revoked, they will be blacklisted from ever receiving licensure in the future, and they will not be allowed to work in the financial industry again. These people are working with life savings, and their trades are swaying entire markets. Mistakes in this manner (ie: marking shorts as long, or mistaking how many are purchased or sold, etc) should not be allowed or brushed over. If a company employs someone who is blacklisted, the company will be fined and they will have 36 hours to remove them from the company and perform training for the employing department. If the individual is not removed within 36 hours, the employing department will be unable to make any trades until two weeks after the individual is removed from the company. If the individuals within a company receive more than fifteen black marks within any three year period, the entire company must undergo training, and no trading may be performed until it is completed by every employee.

Find Before Shorting

All shorts must locate and lock in the borrowing of a suitable stock before they can be marked as a successful short position. Also, Call options should not be allowed to be used as successful locates or borrowing for a short position.