AFP

Hi-tech herd: Spain school turns out 21st-century shepherds

Gripping a sheep firmly between her legs, Vanesa Castillo holds its head with one hand while she tries to shear off its thick fleece with electric clippers. 

“It’s scary!” said Castillo, 37, slightly unnerved by her first attempt at sheep shearing at a school for shepherds in western Spain. 

“You have to pull the animal’s skin taut, really slowly, so you don’t cut it,” explained Jose Rivero, the professional sheep shearer giving the course. 

Sheep shearing is just one of the classes offered at the school in Casar de Caceres in rural Extremadura to counter the flight from the land that has left large swathes of inland Spain thinly populated.

Set up in 2015, the idea was “to bring in people who love the countryside”, said Enrique “Quique” Izquierdo, who runs the school. 

It aims to provide all the training and resources needed to create “a shepherd for the 21st century… with the most up-to-date methods in a sector where the traditional and the cutting-edge merge.”

Much of Spain’s sheep and goat farming is concentrated in rugged Extremadura. The school at Casar de Caceres is one of several across the country, the first set up in the northern Basque Country in 1997. 

– Tech and tradition –

“The traditional image of a shepherd wandering through the fields all day” doesn’t exist any more, said Jurgen Robledo, a vet who said the students are taught how to use many hi-tech tools including milk control programmes.

This year, 10 students are taking the five-month course which also includes hands-on experience of working with animals. 

Thibault Gohier, 26, is learning how to milk goats and to identify whether any of them are sick, which could affect the quality of their milk. 

“You need to use your fingertips as if they were your eyes,” said Felipe Escobero, who heads the farm where the school is based, as they feel a black goat’s mammary lymph nodes at the top of the udder.

When they’re healthy, “they should feel like an almond”, Escobero added. 

The course also covers financial matters and how to fill out certificates attesting to animal welfare or pesticide use. 

Completely free, it is funded by the Cooprado livestock farmers’ cooperative. 

Vet Robledo said modern hi-tech tools mean shepherds can now “measure the individual (milk) production of each animal.

“Such data can let a farmer see if production has dropped due to a subclinical mastitis infection by detecting a drop in production in a certain number of animals.” 

Unlike normal mastitis, such infections don’t cause any visible changes to the milk or udder appearance, making them difficult to detect, although they do affect the farmer’s bottom line by reducing milk production and quality.

– Different backgrounds –

Some students already work in farming and want to specialise, while others are completely new to the field, such as Vanesa Castillo, who is taking the course with her 17-year-old daughter Arancha Morales.

Originally employed at an old people’s home until it shut down two years ago, leaving her scrambling for work, her dream now is to have a sheep farm. 

“We’re looking for a way to bring home some money,” said her daughter, whose father can’t work after having an accident. 

Both women know they face an uphill battle, above all to find an affordable piece of land for their flock, a common problem across Extremadura. 

Thibault Gohier comes from a very different background.

A young Frenchman who loves animals and the countryside, his dream is to have “a bed and breakfast with a small farm attached with about 30 animals” in a mountainous area of France.

As the other students are learning to shear, El Ouardani El Boutaybi is feeding dozens of restless goats who are scampering around a pen. 

“I did the shepherds’ school and all the practical courses in June 2020… and then they took me on to work with them,” said the 20-year-old, who comes from the coastal town of Nador in northeastern Morocco. 

He got to Spain in 2017 after crossing the fence into the Spanish enclave of Melilla in North Africa, where he spent time in a centre for unaccompanied minors before being transferred to the peninsula. 

“I’ve got a future working in the countryside,” he said proudly.

Brazil police arrest one in case of missing reporter, expert

Brazilian authorities on Wednesday arrested a man in connection with the disappearance of a British journalist and a local indigenous expert in the Amazon, police said, as calls mounted for officials to deliver answers on what happened to them.

As the search approached its fifth day, official information was scarce on the investigation into the fate of Dom Phillips, 57, and Bruno Pereira, 41, who disappeared early Sunday in the remote, jungle-covered Javari Valley in Brazil, near the border with Peru.

Brazilian police and military officers told a news conference they had questioned six people and arrested one. But they said it was unclear whether the suspect was directly linked to the case.

In the meantime, the authorities are pursuing “all lines of investigation,” and still hope to find the men alive, said lead investigator Alexandre Fontes.

Investigators said the arrested man was detained during a random stop-and-search operation in the region, when officers found him with drugs and illegally carrying 7.62-millimeter ammunition — a round typically used in assault rifles.

Witnesses reportedly saw the man trailing Phillips and Pereira’s boat as the pair made their way back to the small city of Atalaia do Norte after a research trip to an area known as Jaburu lake.

But “we have not established any connection between him and the (disappearance) for now,” the Amazonas state security secretary, General Carlos Alberto Mansur, told reporters.

– Murky waters –

Local indigenous activists say Phillips and Pereira received threats last week while working in the region, which has seen a surge of invasions of protected indigenous lands for illegal fishing, logging, gold mining and drug trafficking.

Pereira, a highly regarded expert on the region currently on leave from Brazilian indigenous affairs agency FUNAI, has been a target of death threats for his work fighting such invasions, including by helping indigenous communities set up their own patrols.

Investigators insisted they were doing their best in what Fontes called a “very complicated region,” criss-crossed by meandering rivers and reachable only by helicopter, small plane or boat.

A total of 250 officers are working on the rescue mission, including jungle operations experts sent by the army and rescue divers trained to work in murky waters, supported by two helicopters, three drones and 16 boats, they said.

Pressure has been mounting on President Jair Bolsonaro’s government, which faces accusations of failing to scale up the search fast enough in the far-flung region.

“We have reinforced the search operation since yesterday,” Justice Minister Anderson Torres wrote on Twitter.

– Celebrities, rights groups –

The case has drawn urgent appeals from leading media organizations and environmental and human-rights groups — joined by a growing list of high-profile figures including football legend Pele and current star Richarlison.

“The fight for the preservation of the Amazon Forest and the protection of indigenous groups belongs to all of us,” Pele posted on Instagram, along with a video from Tuesday of Phillips’s distraught wife choking back sobs as she pleaded with the Brazilian authorities to help.

“I join the many voices that make the appeal to intensify the search and to find them as soon as possible,” added the 81-year-old footballer, considered by many the greatest of all time.

Brazil and Everton striker Richarlison tweeted the same video.

“I ask the authorities, please, act urgently and do everything possible to find Dom Phillips and Bruno Pereira!” he wrote.

The plea also reached the Summit of the Americas in Los Angeles, where US President Joe Biden is meeting regional leaders this week, including a sit-down with Bolsonaro Thursday.

Activists mounted a giant screen on a truck that stopped at various landmarks, including the iconic Hollywood sign, with the message: “Where are Dom & Bruno?”

Schoolgirl tells Congress of playing dead to survive Texas massacre

An 11-year-old girl told horrified lawmakers Wednesday of smearing herself in her murdered classmate’s blood to play dead during the most chilling in a spate of gun massacres that have convulsed the United States.

Miah Cerrillo, a fourth grader at Robb Elementary School in Uvalde, Texas, recounted for a House of Representatives committee the moments when 19 of her fellow students and two teachers were killed by a teen gunman last month.

She recalled how her class had been watching a movie and scrambled behind their teacher’s desk and their backpacks when the shooter burst into the room.

“He… told my teacher ‘good night’ and then shot her in the head. And then he shot some of my classmates and the whiteboard,” Miah said in a brief but gut-wrenching pre-recorded interview.

“When I went to the backpacks, he shot my friend who was next to me and I thought he was going to come back into the room so I grabbed a little blood and put it all over me.”

Miah recalled how she kept completely silent, before grabbing her dead teacher’s cell phone when the moment came and dialing 911.

“I told her that we need help — and (we need) to see the police in our classroom,” she said.

Police in Uvalde have come under intense scrutiny after it emerged that more than a dozen officers waited outside the door of Miah’s class and did nothing as the children lay dead or dying.

Miah was asked what she wanted to see happen in the wake of the attack.

“To have security,” she said, confirming that she feared a mass shooter could target her school again.

“I don’t want it to happen again,” she said.

– ‘Ripped apart’ by gunfire –

Miah — whose account of the shootings left some lawmakers in tears or wide-eyed in disbelief — is having nightmares and still healing from bullet fragments in her back, according to her father Miguel Cerrillo.

“She’s not the same little girl I used to play with,” he told the committee.

Her testimony came with Congress facing mounting pressure to respond to spiraling gun violence — and particularly mass shootings — across the country.

Massacres at Miah’s school and days earlier at a supermarket in Buffalo, New York have shocked the nation, reigniting urgent calls for gun safety reforms.

The House Oversight and Reform Committee also heard from the mother of Lexi Rubio, a Robb Elementary fourth grader who was killed.

“We don’t want you to think of Lexi as just a number. She was intelligent, compassionate and athletic,” Kimberly Rubio said via a video link, wiping away tears as she sat next to her husband Felix.

“She was quiet, shy, unless she had a point to make. When she was right, as she often was, she stood her ground. She was firm, direct, voice unwavering. So today we stand for Lexi and as her voice, we demand action.”

Roy Guerrero, a pediatrician who attended to several victims in Uvalde, spoke of encountering “two children whose bodies had been pulverized by bullets fired at them, decapitated, whose flesh had been ripped apart.”

– ‘Elected to protect us’ –

A cross-party group of senators is working on a narrow collection of controls that could develop into their first serious attempt at gun regulation reform in decades.

The package would boost funding for mental health services and school security, narrowly expand background checks, and incentivize states to institute so-called “red flag laws” that enable authorities to confiscate weapons from individuals considered a threat.

But it does not include an assault weapons ban or universal background checks, meaning it will fall short of the expectations of President Joe Biden, progressive Democrats, and anti-gun violence activists.

And even this compromise deal has to run the gauntlet of an evenly divided Senate and earn the votes of at least 10 Republicans, most of whom are against significant regulatory reform.

On the other side of the Capitol, House Democrats passed a much broader package of proposals late in the day that includes raising the purchasing age for most semi-automatic rifles from 18 to 21.

Those proposals are however going nowhere — they do not have the 60 votes they would need to advance in the Senate. But Democratic leadership has been keen to act after the spate of recent mass shootings.

Garnell Whitfield Jr, the son of Buffalo massacre victim Ruth Whitfield, who was 86, testified Tuesday before the Senate Judiciary Committee on white supremacist violence.

“You expect us to continue to forgive and forget over and over again? And what are you doing? You were elected to protect us and protect our way of life,” the retired fire commissioner said in an emotional appeal to senators. 

W.House expects May inflation to be 'elevated'

The White House said Wednesday it expects US inflation was still “elevated” in May despite guarded hopes a key data report due for release later this week will show price increases had cooled.

Consumer prices in the world’s largest economy have soared by the fastest pace in more than four decades, with gas prices at the pump hitting new records daily amid the fallout from Russia’s invasion of Ukraine as well as ongoing supply chain challenges due to the Covid-19 pandemic.

The Labor Department is due to release consumer price data for May on Friday, and economists expect the monthly increase to accelerate after slowing in April, when CPI posted an 8.3 percent increase over last year.

“We expect the headline inflation number to be elevated,” Press Secretary Karine Jean-Pierre told reporters traveling with President Joe Biden on Air Force One.

Biden has made fighting inflation his top domestic priority, but is finding he has few tools to directly impact prices.

The Federal Reserve has begun raising interest rates aggressively to combat inflationary pressures, saying the goal is to sustain economic expansion while avoiding a recession.

Biden has stuck to an upbeat message about the overall outlook.

“We continue to believe that the economy can transition from what has been a historic recovery … to stable steady growth,” Jean-Pierre said.

But she acknowledged that the impact of the war in Ukraine has continued to push some prices higher, including airfares.

Spain searches for wounded bear and cub after brutal attack

Spanish authorities are trying to find a brown bear and her cub which were separated after a brutal attack by a male bear that was caught on camera by two onlookers. 

The assault took place on a rocky mountainside in the northern Castilla y Leon region.

Although the mother bear managed to fight off her assailant, she was wounded and separated from her cub, footage released late on Tuesday showed. 

“We know that the mother bear is wounded and we don’t know anything else, the investigation is still open,” a source in the regional environment ministry told AFP.

In the footage, which runs for two-and-a-half minutes, the two adult bears fight for about 40 seconds before falling over the edge and crashing down the rocky hillside. 

The male bear, which was much larger than the female, died of injuries sustained in the fall, officials said, while the injured mother eventually got up and tried to find her cub, although it was not immediately clear whether they were reunited. 

In a post on Twitter, the regional environment ministry said  during the current season “mother bears often have to defend their cubs from attack by adult males”. 

During mating season, male bears often enter a frenzy of lust-fuelled cub killing with the aim of triggering oestrus — a period of sexual receptivity — in females who would otherwise only come on heat after raising their cubs to independence.

The behaviour is called sexually selected infanticide, and has also been observed in birds, bats, primates and big cats.

The mother “which was seen with two cubs several weeks ago, had already lost one of them, presumably after being attacked by this male or another,” the ministry said. 

Among the team searching for the wounded mother bear and her cub were vets, environmental wardens, bear conservation specialists and members of the Guardia Civil police. 

“As happens with other animals, male bears have have an instinct to kill cubs with the aim of mating again. They look for female bears with cubs that they can kill,” the head of the Brown Bear Foundation Guillermo Palomero told AFP. 

“The female enters an oestrus period two or three days after (the cub has been killed) so the male bear can copulate with her,” he said, describing such attacks as “very violent”. 

According to the foundation, 330 brown bears roam the Cantabrian mountains and another 70 are in the Pyrenees on the border between Spain and France. 

Twitter to share data at heart of Musk deal dispute: report

Twitter will yield to Elon Musk’s demand for internal data central to a standoff over his troubled $44 billion bid to buy the platform, US media reported on Wednesday.

The news comes just days after the Tesla chief threatened to back out of his deal to purchase Twitter, accusing it of failing to provide data on fake accounts.

The Washington Post, New York Times and website Axios cited unnamed sources familiar with the negotiations as saying Twitter’s board decided to let Musk access its full “firehose” of internal data associated with the hundreds of millions of tweets posted daily at the service.

“This would end the major standoff between Musk and the board on this hot button issue which has paused the deal,” Wedbush analyst Dan Ives said in a tweet.

Twitter chief executive Parag Agrawal has said that fewer than five percent of accounts active on any given day at Twitter are bots, but that analysis cannot be replicated externally due to the need to keep user data private.

About two dozen companies already pay to access the massive trove of internal Twitter data, which includes records of tweets along with information about accounts and devices used to fire them off, according to the Post.

Twitter declined to comment on the reports but has defended its responsiveness to Musk’s requests, and vowed to complete the deal on the original terms.

The mercurial Musk agreed to buy Twitter in a $44 billion deal in late April.

Twitter’s top legal officer has told employees that a special shareholder vote whether to approve the buyout deal could be held in late July or early August, according to Bloomberg.

Musk began making significant noise about fake accounts in mid-May, saying on Twitter he could walk away from the transaction if his concerns were not addressed.

Some observers have seen Musk’s questioning of Twitter bots as a means to end the takeover process, or to pressure Twitter into lowering the price.

The potential for Musk to take Twitter private has stoked protest from critics who warn his stewardship will embolden hate groups and disinformation campaigns.

US securities regulators have also pressed Musk for an explanation of an apparent delay in reporting his Twitter stock buys.

Twitter shares finished the official trading day slightly above $40, significantly lower than the $54.20 Musk agreed to pay when he inked the purchase deal.

US, European stocks fall on worries over inflation, central bank moves

Wall Street stocks tumbled Wednesday, giving back the prior session’s gains on festering inflation worries and joining European equities lower ahead of a key European Central Bank decision.

US equities, which forged higher on Tuesday despite a downcast forecast from the World Bank, were back in the red as oil prices jumped and the White House warned of another gloomy consumer price report later this week.

White House Press Secretary Karine Jean-Pierre told reporters the Biden administration expects Friday’s consumer price index to be “elevated,” boosting expectations for more Federal Reserve monetary tightening.

“The Combination of higher crude prices and yields ticking up again has people concerned,” said Art Hogan, strategist at National Securities.

Major US indices fell about one percent, while bourses in Paris and Frankfurt also retreated, with a market note from Charles Schwab describing investors as “appearing a bit skittish” ahead of Thursday’s ECB decision.

The ECB is on Thursday expected to signal an end to its bond-buying, paving the way for an interest rate increase further down the line.

“The reality for the economy and probably the stock markets is that aggressive central bank rate hikes are likely to take a sharp bite out of household consumption,” said SPI Asset Management’s Stephen Innes.

The Paris-based Organization for Economic Co-operation and Development predicted that the world economy would grow by three percent this year — much slower than its previous estimate of 4.5 percent in December.

Earlier in Asia, stock prices had rallied as China eased Covid lockdown restrictions and is forecast to lift its crackdown on the tech sector.

China’s approval of dozens of new video game releases sent shares of some of its biggest tech firms soaring Wednesday.

Japan’s Nikkei also piled on about one percent as the falling yen gave support to exporters. 

The dollar climbed to a two-decade high against the Japanese currency, which has been weighed down by the Bank of Japan’s hands-off approach to inflation compared with other central banks.

– Key figures at around 2030 GMT –

New York – Dow: DOWN 0.8 percent to 32,910.90 (close)

New York – S&P 500: DOWN 1.1 percent at 4,115.77 (close)

New York – Nasdaq: DOWN 0.7 percent at 12,086.27 (close)

London – FTSE 100: DOWN 0.1 percent at 7,593.00 (close)

Frankfurt – DAX: DOWN 0.8 percent at 14,445.99 (close)

Paris – CAC 40: DOWN 0.8 percent at 6,448.63 (close)

EURO STOXX 50: DOWN 0.5 percent at 3,788.93 (close)

Tokyo – Nikkei 225: UP 1.0 percent at 28,234.29 (close)

Hong Kong – Hang Seng Index: UP 2.2 percent at 22,014.59 (close)

Shanghai – Composite: UP 0.7 percent at 3,263.79 (close)

Dollar/yen: UP at 134.29 yen from 132.59 yen late Tuesday

Euro/dollar: UP at $1.0720 from $1.0703 

Pound/dollar: DOWN at $1.2535 from $1.2592

Euro/pound: UP at 85.54 pence from 85.00 pence

Brent North Sea crude: UP 2.5 percent at $123.58 per barrel

West Texas Intermediate: UP 2.3 percent at $122.11 per barrel

burs-jmb/to

Canada unveils carbon emissions offset market

Canada unveiled Wednesday a national carbon emissions market to help it meet its climate goals by allowing cities, farmers and others to sell credits for CO2 reductions to heavier polluters.

Under the system, registered participants can generate one credit for each tonne of emissions they reduce or remove from the atmosphere.

Credits can then be sold to others in Canada to help them meet compliance obligations or emissions reductions goals.

“This system gives foresters, farmers, Indigenous communities, municipalities and others an opportunity to earn revenues by cutting pollution,” Environment Minister Stephen Guilbeault told a news conference.

Some environmental groups, however, called it a step backwards in the fight against climate change.

“Offsets don’t stop carbon from entering the atmosphere and warming the planet, but on paper they make the big polluters look good,” Greenpeace’s Salome Sane said in a statement.

Ottawa has pledged to reduce Canada’s carbon emissions by up to 45 percent below 2005 levels by 2030. 

But several independent reports have said the government is not doing enough to reach that target, and is lagging behind its G7 counterparts in slashing emissions.

Its new offset credit system, which allows credits to be generated from projects started after January 1, 2017, would allow landfills to sell credits for captured methane, for example.

Farmers could generate credits by sequestering more carbon in their soil by alternating fields in which they plant crops, or using feed for livestock that produces less burped gasses, while forestry firms could do the same by thinning diseased trees and managing brush to reduce wildfires.

“You can’t just go out and plant a tree in your front yard and get a credit,” an official told a briefing.

The emissions cuts must be new, verifiable, and permanent to qualify under the program, which will also include direct carbon capture from the air once those details are hammered out.

The federal system also prohibits trading of duplicate credits. The province of Quebec, for example, is already part of the US state of California’s cap and trade system known as the Western Climate Initiative.

Schoolgirl tells Congress of playing dead to survive Texas massacre

An 11-year-old girl told horrified lawmakers Wednesday of smearing herself in her murdered classmate’s blood to play dead during the most chilling in a spate of gun massacres that have convulsed the United States.

Miah Cerrillo, a fourth grader at Robb Elementary School in Uvalde, Texas, recounted for a House of Representatives committee the moments when 19 of her fellow students and two teachers were killed by a teen gunman last month.

She recalled how her class had been watching a movie and scrambled behind their teacher’s desk and their backpacks when the shooter burst into the room.

“He… told my teacher ‘good night’ and then shot her in the head. And then he shot some of my classmates and the whiteboard,” Miah said in a brief but gut-wrenching pre-recorded interview.

“When I went to the backpacks, he shot my friend who was next to me and I thought he was going to come back into the room so I grabbed a little blood and put it all over me.”

Miah recalled how she kept completely silent, before grabbing her dead teacher’s cell phone when the moment came and dialing 911.

“I told her that we need help — and (we need) to see the police in our classroom,” she said.

Police in Uvalde have come under intense scrutiny after it emerged that more than a dozen officers waited outside the door of Miah’s class and did nothing as the children lay dead or dying.

Miah was asked what she wanted to see happen in the wake of the attack.

“To have security,” she said, confirming that she feared a mass shooter could target her school again.

“I don’t want it to happen again,” she said.

– ‘Ripped apart’ by gunfire –

Miah — whose account of the shootings left some lawmakers in tears or wide-eyed in disbelief — is having nightmares and still healing from bullet fragments in her back, according to her father Miguel Cerrillo.

“She’s not the same little girl I used to play with,” he told the committee.

Her testimony came with Congress facing mounting pressure to respond to spiraling gun violence — and particularly mass shootings — across the country.

Massacres at Miah’s school and days earlier at a supermarket in Buffalo, New York have shocked the nation, reigniting urgent calls for gun safety reforms.

The House Oversight and Reform Committee also heard from the mother of Lexi Rubio, a Robb Elementary fourth grader who was killed.

“We don’t want you to think of Lexi as just a number. She was intelligent, compassionate and athletic,” Kimberly Rubio said via a video link, wiping away tears as she sat next to her husband Felix.

“She was quiet, shy, unless she had a point to make. When she was right, as she often was, she stood her ground. She was firm, direct, voice unwavering. So today we stand for Lexi and as her voice, we demand action.”

Roy Guerrero, a pediatrician who attended to several victims in Uvalde, spoke of encountering “two children whose bodies had been pulverized by bullets fired at them, decapitated, whose flesh had been ripped apart.”

– ‘Elected to protect us’ –

A cross-party group of senators is working on a narrow collection of controls that could develop into their first serious attempt at gun regulation reform in decades.

The package would boost funding for mental health services and school security, narrowly expand background checks, and incentivize states to institute so-called “red flag laws” that enable authorities to confiscate weapons from individuals considered a threat.

But it does not include an assault weapons ban or universal background checks, meaning it will fall short of the expectations of President Joe Biden, progressive Democrats, and anti-gun violence activists.

And even this compromise deal has to run the gauntlet of an evenly divided Senate and earn the votes of at least 10 Republicans, most of whom are against significant regulatory reform.

On the other side of the Capitol, House Democrats are set to pass a much broader package of proposals later Wednesday that includes raising the purchasing age for semi-automatic rifles from 18 to 21.

Those proposals are going nowhere — they do not have the 60 votes they would need to advance in the Senate — but Democratic leadership has been keen to act after the spate of recent mass shootings.

Garnell Whitfield Jr, the son of Buffalo massacre victim Ruth Whitfield, who was 86, testified Tuesday before the Senate Judiciary Committee on white supremacist violence.

“You expect us to continue to forgive and forget over and over again? And what are you doing? You were elected to protect us and protect our way of life,” the retired fire commissioner said in an emotional appeal to senators. 

US regulator favors revamp of stock market trading system

Citing equity market trading defects revealed in last year’s GameStop saga, a top US securities regulator on Wednesday endorsed a broad revamp of the stock market trading system. 

In a speech billed as a first step towards a possible update in the rules likely to rile financial firms, Gary Gensler, chair of the Securities and Exchange Commission, said he favored restructuring the system in order to better protect retail investors.

“It’s not clear… that our current national market system is as fair and competitive as possible for investors,” Gensler said in a virtual address at a conference hosted by Piper Sandler.

The speech marks the SEC’s latest action in response to frenzied trading in early 2021 during which extreme volatility in GameStop, AMC Entertainment and a handful of other equities rocked the market and led brokerages to implement sudden trading restrictions that angered investors and spurred congressional probes.

Gensler said the current system routes “the vast majority” of stock trades orders to electronic trading wholesalers such as Citadel Securities and Virtu Financial. 

In some cases, these firms pay the brokerages, an arrangement known as “payment for order flow” that can allow brokerages such as Robinhood Markets to offer commission-free trades to individual investors.

But Gensler is skeptical that this arrangement protects retail investors and believes the payment for order flow system creates conflicts of interests and encourages “gamification” on online platforms to increase trading volumes.

Gensler has asked SEC staff to consider steps to “enhance order-by-order competition,” potentially through auctions. He has also asked staff for recommendations to mitigate the risks with payment for order flow and to provide more transparency.

The SEC head described the speech as a starting point towards possible regulation that will include extensive public comment and discussion with other SEC commissioners.

Doug Cifu, chief executive of Virtu, disputed Gensler’s characterizations, telling CNBC that most of the broker dealers with which his firm trades do not accept payment for order flow.

“The chair with all due respect is conflating the issue of payment for order flow with the ecosystem that has evolved in this country for retail trading, which has really enabled retail investors to have instantaneous execution and essentially zero commission on 8000 listed names,” Cifu said.

“You know, the cliche that markets have never been better is actually factually correct.”

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