June 28, 2023
Dear SEC, the comment that follows is in reference to \"Release Nos. 33-11030 34-94211 File No. S7-06-22\".
Regarding proposed amendments to 13-d-3, I am calling your attention to: \"Short positions...should not be netted against long positions or otherwise taken into account\". Please cross-reference this statement with the SEC's earlier statement in this filing \"holders of such derivative securities may have both the incentive and ability to influence or control the issuer of the reference securities\".
Considering the purpose of these changes is to address \"information asymmetries in todays market\", it is illogical and ineffective to disregard the short position of cash-settled derivatives holder.
As a household investor, I concur with the SEC stance that derivate securities holders have both the incentive and ability to influence issuers (and to be frank, the market price of said security).
I request and recommend that the SEC amend the proposed changes to inculde a stipulation that short positions be netted against long positions. Admittedly, this may limit visibility of parties simulating 10% ownership stakes through cash-settled derivatives. However, this would benefit transparency and fairness in the US equities and derivatives markets to show true holders of short positions and influencers of securities' pricing.
Thank you for considering my words on this subject. I would also request that in future releases, the SEC provides a table of contents with page numbers provided to make for easier review and discussion.
Best,
Chance Furgerson