[This message was posted by John Harris of BondMart Technologies, Inc. 
<[email protected]> to the "US Regulations" discussion forum at 
http://fixprotocol.org/discuss/48. You can reply to it on-line at 
http://fixprotocol.org/discuss/read/2db22490 - PLEASE DO NOT REPLY BY MAIL.]

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


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