Mar. 23, 2023
March 23, 2023 I am an international investor who is nonetheless directly affected by the trading regulation (or, sadly, often lack thereof) in the US stock market. I am opposed to this proposed rule S7-01-23. It allows yet another loophole for naked shorting to continue allows irresonsible parties to defer and delay closing their positions by permanently distorting the true supply and demand of securities in the market, which hurts household investors. Again, I am against this proposed rule. SEC can fix everything by implementing two things. 1. Legitimate shares MUST only be lent out one time. Tagging every legitimat share with a serial number, rendering them non-fungible, is well within the SEC's ability and power and has been for decades. The fact it has not been made a requirement, and implemented in the US market to-date, is clear evidence of an unwillingness to address the fundamental issues of naked short-selling, rehypothecation and repeated lending and reselling of 'phantom' shares. 2. Every share sold short must be declared by any brokerage, trading house, (even 'household' hedge funds) via MANDATED monthly public disclosures. 3. FTDs (Failures to Deliver) must be limited to 1-3 days. FTDs by any brokerage, trading house, (even 'household' hedge funds) MUST be declared via MANDATED monthly public disclosures. Short selling and repeated lending is out of control and the SEC refuses to reign it in. FTd's are at historic high and shares are being sold short without finding legitimate share locates. The general public now sees the crime being done daily. This proposed rule S7-01-23 attempts to create loopholes for rules already in place, designed to prevent market instability. By creating a loophole, they would create further instability. Furthermore, I impore the SEC to enforce the rules already in place. Do not pass this rule.