February 19, 2022
This closes a very large loophole in Beneficial Ownership Information(BOI) reporting. What happened to Archegos and all their lenders in 2021 would not have been possible had these BOI reporting standards been in place. The first paragraph of this proposal captures a large part of the BOI reporting issue perfectly \"The proposed amendments also would deem holders of certain cash-settled derivative securities as beneficial owners of the reference equity securities and clarify the disclosure requirements of Schedule 13D with respect to derivative securities\". It is known that Archegos was bypassing these reporting requirements by holding Contracts for Difference (CFDs)and exposed multiple banks and investors to massive risk. The banks SHOULD be aware of this risk and act accordingly but clearly they are not competent enough or willfully negligent to the amount of risk that they are exposing themselves and the financial system to. The value of publicly traded companies, and their stock owners, are also heavily affected when these types of derivatives are abused as can be seen from the price action of the stocks that Archegos was holding CFDs in when they were liquidated.