Mar. 23, 2023
March 23, 2023
Dear SEC Commissioners,
I am writing to express my concern about the proposed exemptions for hedge fund managers, market makers, and liquidity providers under Section 27B of the Securities Act of 1933. As an investor, I believe that these exemptions will only benefit a small group of market participants, such as Citadel and Ken Griffin, who have a history of manipulating the market.
It is clear that the proposed rule would prohibit securitization participants from entering into a \"conflicted transaction,\" which includes short selling of the asset-backed security (ABS) or purchasing a credit derivative that would result in a conflict of interest. However, the exemptions for risk-mitigating hedging activities, bona fide market-making activities, and liquidity commitments provide an opportunity for market participants to engage in activities that can potentially harm investors.
In my opinion, the exemptions are too broad and fail to provide adequate protection for investors. While I understand that the SEC has the responsibility to balance the interests of market participants and investors, I believe that the proposed exemptions tilt the balance too far in favor of market participants. As such, I urge the SEC to reconsider the proposed exemptions and ensure that they do not create opportunities for market manipulation.
Thank you for your attention to this matter. I appreciate your hard work and dedication to protecting investors and ensuring the integrity of the securities markets.
Sincerely,
Tony Chan