Mar. 15, 2023
Dear SEC: I am writing to you today to provide feedback on the recently re-proposed rule S7-01-23, as it seems certain 'Market Maker Exceptions' were recently added to the proposal, and the rule change is no longer properly representing Retail/Household Investors. Without using any type of fancy financial terms or theories.. what on Earth would be the point of these proposed rule changes, preventing MAJOR conflicts of interest in Securitizations, if those that are 'making our market' ie. Market Makers, are not held to the same exact laws? For far to long Market Makers in the United States have been allowed to rehypothecate securities on the premise of 'liquidity', and now we are finally seeing confirmed reports of MANY securities showing that more shares are in circulation, than the Board of Directors/Firm actually sold into the market. It doesn't take a Rocket Scientist to understand how this occurs, and it certainly should not be very difficult for our US Regulators, specifically the SEC under Gary Gensler, to understand the drastic impact this has on honest & true 'price discovery', not to mention unlimited naked short selling which only further pushes the price down of many companies common stock. Household Investors are held to a certain book of laws, policies, and standards which put us at a severe disadvantage while trading each day. Why are our Market Makers & Hedge Funds provided 'exceptions', when they are human-beings like every single one of us using the US Capital Market System the same? This proposed rule change includes significant flaws which inadequately protect Household/Retail Investors by severely reducing the overall amount of information available to them. This lack of transparency makes it increasingly difficult to make informed financial & trading decisions, potentially leading to life-changing losses. Additionally, the proposed rule change may be seriously exploited by Hedge Funds. Hedge Funds have a long history of manipulative behavior within our US Capital Markets, and this exemption would offer them a completely new opportunity to engage in such practices. In summary, if the SEC & our other US Regulators are ACTUALLY attempting to even the playing field for Retail/Household Investors, this proposed rule must have NO EXCEPTIONS. Period. Please stop allowing these malicious firms on Wall Street to destroy the working class. I have provided my full & honest feedback, and I truly hope your firm takes these comments into consideration BEFORE making a final decision. Respectfully, Michael Jorgensen