June 25, 2023
The voting system for domestic securities will be unequivically broken by this proposal.
I say this from the prospective of someone who verifies systems of high complexity for a living in cases of threats by.. external forces.
The current requirement of direct ownership of a security before controling said security doesnt exist to disallow control of domestic securities by market leaders.
It exists to require due investment by bigger fish than that: nation state actors must require due investment and interest before controlling domestic securities.
Simply put: by allowing voting rights of derivatives contracts to control domestic securities, we open up domestic securities to being influenced by foreign financial adversaries who may hold conflicts of interest.
Now in english: This is a matter of national security. If you want china to take voting rights of Miter and install a new board of directors within the next 6 months by leveraging deep OOTM put contracts, then this is how you get it.
Any benefit gained by market makers with this change will be mirrored 10 fold by foreign adverseries.
Rewrite this trash.