because we are going to change it
Good!
If you look at things from an objective point of view (not as a person seeking the highest return possible), I think you will see that markets are useful at setting prices, and we'd rather let the price be discovered organically instead of having some sort of agenda.The FRR can definitely be better, but it is very simple, and based on numbers that we don't create.
I respectfully disagree. They are being treated as market makers (placing limit orders) but are not "setting" any prices. I might say, one way to deal with the massive backlog of lenders is by filling orders on the bid side. Actually, as I post this, there's overlap in both sides of the lend book. Also, I did tweak your quote a little bit. I did not mean to change any wording.