Jun. 26, 2023
To whom receives this: The derivative portion is disgusting. It makes zero sense to provide an institution who is creating a synthetic supply the ability to manipulate the market even more through the stealing of shareholder rights which in turn can impact the companies that the shareholders are invested in. This is the most blatant in your face complicit rule making attempt I have seen to date. I am 100 percent for more regulation and transparency with reporting as it is much needed. Not having 100 percent of the information provided to regulators intentionally creates an uneven advantage for the participants. I think reporting should be instantaneous as the technology exists to allow this and it would allow for immediate identification of any issues when they are posted (ex:blockchain). I am a retail investor and consistently see the SEC proposing rules that continue to increase the slope advantage of Wallstreet and friends when the activities in themselves are Fraudulent. Selling something that you do not have and do not have the intent of delivering is fraud. How are all of these participants allowed to collect billions of dollars and not actually go to market and purchase the security. This destroys the supply and demand curve and dilutes the investments and vote. Only toxic trades are hitting the markets. The internalizers (wholesalers) are controlling not only the supply, the demand, the time structure in the market, the boards of companies and more. This needs to STOP. Example: Institution has 65B in securities sold but not yet purchased They hold option positions NOT ACTUAL SHARES, NOR ARE THEY LOCATING SHARES but they are creating synthetics in their ATS to sell to the public while skimming from the ask and the bid, arbitrage, utilizing accounting cost differences to credit profit from trades, selling synthetics and then failing to deliver real shares (which by definition is NAKED SHORT SELLING), and multiple other avenues that the participants are using to abuse the system for their own gain. Google gave me this when I google securities sold not yet purchased :Citadel sells securities to market participants - sometimes securities that it doesn't actually own yet. Basically, Citadel gets to use a form of leverage not accessible to a typical trader or fund. Citadel gets to make an immediate profit without putting up its own capital. This is a ponzi scheme. Allowing an actor to dilute stocks numerous times over through multiple markets, and then providing them voting rights to their synthetics is absolutely backwards and it pains me to see a regulatory body tasked with market transparency and fairness providing such a parasitic rule thinking it is a good idea. Remove the derivative portion. If the stocks were LOCATED and not synthetically created and sold originally by all participants, and the DTCC did the job they are supposed to regarding tracking of all stocks sold in the market, you would not need to try to steal and cover up the systematic abuse you have turned a blind eye to for decades. BAN PFOF, Make FTDS Illegal and a 3x against profits fine accompanied with prison time. AUDIT THE DTCC and all brokers. This is a sad attempt to cover a mess that was left alone due to who benefited. I STAND AGAINST THE DERIVATIVE PORTION OF THIS RULE AND REQUEST IT BE AMENDED AND PFOF BAN and FTD forced buy ins and removal from DTCC for offenders be added instead. Angry Investor