February 22, 2022
Dear Chairman Gary Genlser/SEC,
I write this letter to you today in response to the Modernization of
Beneficial Ownership Reporting Proposal S7-06-22. The way I am reading
it there are a couple points within the proposal I'd like to personally comment on.
I am a retail investor, I don't have too much experience within the stock market
and the year and a half I have been investing, I've immersed myself within the
inner workings as much as I can.
I simply want a free market for all. So that all retail investors
can have equal access to information so
everyone has a fair shot at financially planning for the future.
I really got involved when the disruption of free market capitalism with the events revolving around 1/28/21. A number of securities were restricted from purchasing and placed into a position close only situation across many brokers. In that short time period there were billions
moved to bail out melvin capital by citadel and point 72. The entire situation has raised a bunch of eyebrows within the retail investor community.
So regards to Modernization of
Beneficial Ownership Reporting Proposal S7-06-22
Accelerate the filing deadlines for Schedules 13D and 13G beneficial ownership reports
I believe the filing deadlines for 13d and 13g should be as close to a 24 hour time period as possible.
This helps to prevent further corruption from skating settlement dates by being able to transfer debts/liabilites/assets from entity to entity without having to file for things essentially hiding positions. We know that they work together to skate these types of settlements and that its tough to keep track of everything on a daily basis, sounds almost
impossible but I believe that a better software program that files immediately at time of purchase should be the ultimate end goal which I believe is touched on toward the end of this proposal.
Expand the application of Regulation 13D-G to certain derivative securities
\"Accordingly, the proposed amendment would deem holders of such derivative securities to beneficially own the reference securities just as if they held such securities directly.\"
A derivative is not a security and should not be treated as such.
Its opening the door for more unregulated self regulation.
Clarify the circumstances under which two or more persons have formed a group that would be
subject to beneficial ownership reporting obligations
\"New Rule 13d-6(d) would set forth the
circumstances under which two or more persons may enter into an agreement governing a
derivative security in the ordinary course of business without concern that they will become subject to regulation as a group with respect to the derivatives reference equity securities.... including with respect to derivatives not originating
with the issuer, such as cash-settled options not offered or sold by the issuer and security-based
swaps\"
It sounds like this is an open invitation for high profile firms to actually work together as a group without reprocussion of regulation, and it also creates a heavy disambiguity of the difference between the derivatives, swaps and actual securities and their respective filing periods.
Require that Schedules 13D and 13G be filed using a structured, machine-readable data
language.
This may be the most important part and I wish that the SEC could expand on this proposal. If you created
an easy to use website/app with complete structure of each given security with automatic trade reporting
would be a major step in bringing transparency into the market.
Thank you Gary Gensler and the SEC.