Apr. 18, 2023
April 18, 2023 I generally support moving to electronic filing and think the SEC should also increase its efforts at providing clear instructions on its filings and keeping its forms up to date. A simplified interface, instead of EDGAR's antiquated and confusing one would be a good start. Hover-over definitions and links to relevant rules should also be standard. Forms should also contain or link to the purpose of the form because understanding a form is key to populating it correctly, and the nature of the SEC's rules (long, prescriptive, and multiple sub paragraphs and conditions, etc.) make this an even more important feature to have. For example, FORM X-17A-5 SCHEDULE I still lists the Midwest exchange, and does not explain whether you should read that as whatever the current name that exchange may go by, or whether it is just an artifact of a form that just has not been updated. And there are many many more exchanges that are not listed at all (i.e., MEMX), so knowing why this information is elicited would help inform how to populate the form. Under the proposed amendments, the Commission would rescind Form 19b-4(e) and instead require that the information regarding the listing and trading of new derivative securities products be posted publicaly on the relevant SROs website. The proposed amendments would also remove the manual signature requirements for Form 19b-4, which already requires an electronic signature. I suggest that the rules of posting new derivative security products publicly be made more stringent, transparent and reliable. There are loopholes, one example is when hedge funds, short sellers, etc. transfer short positions out of the country they don't have to report them, therefore making the information now reported unreliable. There could be more examples that I'm not aware of, so I believe there must be reliable data posted, for market transparency. CEO's are starting to wonder what data is real, and often complain that they have a full time job fighting illegal derivative activity. If the data was correct and penalties (not small fines) deterred reporting of fake data the market would be fairer. I support the proposal which would require the information currently contained in Form 19b-4(e) to be publicly posted on the SROs website--Derivatives information. Transparency is absolutely key to a fair market.