June 26, 2023
Hello SEC members,
I am against this proposed rule in its current state.
Modernizing the filing deadlines seems beneficial, but deeming the purchasers of cash settled derivatives as beneficial owners seems like it is asking for bookkeeping errors and overlaps. With an unknown quantity of derivatives based on a given security, under this rule, the number of beneficial owners of the security could be infinite.
While I am an advocate of requiring entities to disclose their interests in derivative securities, this particular method seems flawed and ripe for manipulation, especially if the beneficial ownership status also grants voting rights to the derivative holders.
Remove the addition of new paragraph (e) for Rule 13d-3 and this rule would be greatly improved.
Thank you,
- Jeremy