Jun. 28, 2023
Dear Securities and Exchange Commission, I am writing to offer some essential considerations regarding the Proposed Rule (S7-06-22) I believe that a reporting deadline of two (2) business days would be more appropriate and effective in achieving the desired objectives. A shorter reporting window would significantly reduce the opportunity for investors to accumulate large stock positions secretly, trading on information advantages that are unavailable to the broader market. The proposed rule would level the playing field and enhance market efficiency. I strongly support this intention and encourage the SEC to take decisive action by adopting a two-business-day reporting requirement. Furthermore, it is crucial to include holders of cash-settled equity swaps in the definition of beneficial ownership to ensure fairness and transparency. By doing this, we can ensure that we have a more accurate understanding of who really has a significant stake in a company. This inclusion helps us identify individuals or entities who may have considerable influence or control over a company's decisions, despite not owning the shares outright. In today's financial markets, derivative instruments like these play a significant role in shaping ownership positions. For instance, if a hedge fund or a large corporation secretly holds a substantial stake in a company without disclosing it to the public, this lack of transparency creates an unfair advantage, allowing them to manipulate the stock market and potentially deceive other investors. So by including these agreements when determining who owns at least 5% of a company, we can shine a light on these hidden positions. This action becomes particularly important when we consider the threat posed by unscrupulous actors who exploit the system for personal gain, undermining the integrity of the stock market. So by bringing these secret holdings to light, we can expose any attempts to deceive, cheat, or steal money from the market. It is essential that the rule clarifies that the inclusion of cash-settled equity swaps does not transfer voting rights or investment powers to the swap instrument. This is very important. This clarification would ensure that the disclosure requirements align with the actual decision-making and control exercised by the investor, maintaining clarity for market participants. I want to ensure that the rule clearly states that including cash-settled equity swaps in beneficial ownership doesn't give these instruments the ability to control or make decisions for the company. This clarification helps market participants understand the true power and decision-making authority held by investors, ensuring transparency and preventing any misinterpretation of their level of control. I believe that the Proposed Rule should address the issue of short position reporting. While the focus is rightly placed on long position disclosures, it is equally important to enhance transparency in short positions. I urge the SEC to consider revisions to Rule 13f-2 to establish consistent and comprehensive reporting requirements for both long and short positions. I sincerely thank you for considering our comments and suggestions on this important rule-making process and remain committed to supporting the SEC's mission for increased transparency and equality within our market. Yours sincerely, Retail Investor Sent with Proton Mail secure email.