I would like to point out that most exchanges do not operate this way, and that even in equities, dealers have eschewed rules by not technically being an exchan

I would like to point out that most exchanges do not operate this way, and that even in equities, dealers have eschewed rules by not technically being an exchange, but functionally doing so. All banks have trading desks, and the vast majority of the the trading they do is engaging in a private contract with themselves and their customers. Citadel/Jane Street both use ECNs to simply tally a trade that they do privately, and in markets where Citadel has to use an exchange, they get extremely (suspiciously) good rates and preferential treatment. I do want exchanges and dealers to be separate entities, but I would also prefer it if this justice were doled out fairly—not just when it’s politically convenient to pursue it.