Jun. 26, 2023
Please disregard my previous comment. I have now been made aware that their will be no voting rights passed on,beneficial holder in the way this rule describes it, should only relate to reporting short positions. I support this rule for its increase in transparency for the SEC relating to derivatives positions. On Sun, 25 June 2023, 11:56 am Harry Batras, <hbatras1990@gmail.com> wrote: Allowing derivatives holders voting rights is a step in the completely wrong direction. Reporting by the CFTC for swaps has been postponed until 2026 at this point in time. Would all the people who have cheap OTM swaps be allowed to vote the full 100 shares at a far cheaper price point then buying 100 shares? What if these are shorts? Allowing votes from shorts would destroy companies even sooner, destroying the average investors shareholder value. It's bad enough that derivatives are allowed to move markets at all to begin with. The SEC is essentially creating further reliance on the CFTC, who has shown it cannot even collect quarterly reported swaps data and you wish to add this process into an already messy process that the SEC has already allowed for votes to be trimmed down by brokerages to fit the outstanding shares released by companies. And now you wish to add derivatives holders to this absolute mess that the SEC has allowed to happen. None of the numbers are verifiable at the moment by retail, the SEC or the CFTC. I've always thought derivatives were just for hedging, this seems a way to give potential bad actors extra votes to dismantle companies sooner. The SEC is also pushing regulation to the CFTC when shareholders votes should be an entirely SEC problem, not the gamblers in the derivatives markets. Fix the plumbing of voting first before you allow even more shareholder rights to be diluted by derivatives gamblers. This is a terrible rule that has been proposed.