May 3, 2023
Dear Regulators, I am an international, household investor. I support the proposed Rule S7-06-22 on the grounds that it would level the playing field somewhat for the average Joe investor. I have watched stocks rocket and plummet like roller coasters as ownership filings come in. During this period, a filer may well sell off at a considerable profit because of the Algorithms adjusting prices in the wake of their filing. This is tantamount to pump and dump play. That shouldn't be a possibility. Then again, one could argue the bigger issue there is that, by Chair Gensler's own words, some ~97% of household investor trades never reach a lit exchange. If ALL trades hit lit exchanges, algo's wouldn't have to rocket the price to correct for ownership values in the first place, as price discovery would be REAL for the first time in decades. I especially love that this rule seeks to force regulatory filing of derivative positions. This can help outline potential fraud such as short covering (NOT closing!) via options contracts, as well as ridiculous swap positions (such as Archegos). Again, I support this rule. Keep doing the best you can, SEC! Regards, An average Joe investor.