"We’ve been here before… Economic problems related to OTC derivatives first occurred n 1994 which included the bankruptcy of Orange County, in 1998 with the collapse of Long-Term Capital Management, then during the California electricity crisis of 2000 and 2001 due to market manipulation by Enron, and most recently the credit crisis as a result of mortgage securitization repackaged into complex derivatives."
"Unfortunately, futures markets are often painted with the same paintbrush, even though current problems in commodity markets are directly related to loopholes “inserted at the behest of Enron and other large energy traders into the Commodity Futures Modernization Act of 2000 [CFMA] in the waning hours of the 106th Congress.” This law exempted from CFTC oversight the trading of commodities in “synthetic” futures via OTC electronic exchanges—an institutionalized redux of early 1900s bucket shops." see: The Commodity Conundrum: Securitization and Systemic Concerns (Part III)
"Bucket Shop is a specifically defined term under the criminal law of many states in the United States which make it a crime to operate a bucket shop.  Typically the criminal law definition refers to an operation in which the customer is sold what is supposed to be a derivative interest in a security or commodity future, but there is no transaction made on any exchange. The transaction goes 'in the bucket' and is never executed. Without an actual underlying transaction, the customer is betting against the bucket shop operator, not participating in the market." see: Wikipedia
The SEC believes that "internalization" is somehow different, and this affects ALL of your online trading, no matter what you are trading. Trades that are executed outside of the exchange, never reaching the main market, effectively hide data from technical analysis, and skew pricing. see: Not a bucket?
"... internalization hurts retail customers and market quality"