June 26, 2023
Household (retail) investors are not always familiar with the rules being proposed and when proposals are closed for comments. We have jobs and lives that do not revolve around finance. The finance industry has the means and self interest to guide the rules in their favor, sometimes at the expense of the household investor. Opening this proposal for comments is appreciated.
I support the proposed amendments to revise filing deadlines. Technology has improved the speed of information. The public and all Market participants need adequate and timely disclosure of material information.
I am against the proposed amendments for rule 13d-3 regulating the use of cash settled derivative securities. Holding derivatives that entitle the owner to nothing more than economic exposure to a covered class historically has not been considered sufficient to constitute beneficial ownership. This appears to give derivatives holders voting rights. The proposed amendment has farther reaching implications that are not publicly disclosed. But this directly effects the public. This proposed amendment should be rejected.
I am against the proposed amendment to rule 13d -3(e) for determining the number of equity securities that a holder of a cash settled derivative security will be deemed to beneficially own. For purposes of determining the number of equity securities that a holder of cash settled derivative security will be deemed to beneficially own, only long positions should be counted. This proposed rule amendment further disadvantage household investors. This would allow more sophisticated market participants to synthetically create unlimited voting rights. Derivatives owners should have no voting rights as they do not actually own the security.