Jun. 25, 2023
Dear regulators, I am an individual retail investor. I agree with the proposed rule S7-06-22 because it will give regular investors an equal opportunity. As ownership reports come in, I have seen stocks rise and fall like waves. A filer may sell off their holdings during a peak, gaining a sizable profit due to algorithms altering prices in response to their filing. This resembles pump and dump play, which shouldn't be possible. However, one could counter that the fact that over 97% of trades by retail investors never make it to the lit market is actually a worse problem. If all deals were executed on active exchanges, price discovery would be real for the first time in decades; Eliminating the need for algorithms to artificially change prices to adjust for ownership values. I like that this regulation aims to mandate the regulatory registration of derivative positions. This can be used to highlight probable fraud, such as short covering (not closing!) through options contracts and absurd swap positions used by predatory hedge funds and market makers like Archegos, Credit Suisse, and Citadel Securities. I endorse this rule and hope the SEC will listen to retail investors and do the right thing. Regards, An individual retail investor.