Jan. 04, 2022
Naked shorts are bad mmkay. They dilute the stock. Swaps are bad, they hide the naked shorts. Darkpools are bad they cause pricing ineffiency and help hide the naked shorts/true value of a stock And to the SEC, As Chair Gary Gensler mentioned Dec 9th, the SEC needs to stay true to its purpose.1 Investor protection with transparency is essential. Although transparency requires a certain amount of regulation and compliance, there becomes a point that the compliance involved is overburdened and in fact detrimental to investors. The commission should be looking for ways to keep US markets transparent but at the same time reduce regulatory compliance burdens on broker dealers. In this day and age of technology, the Commission should ultimately be looking for ways of reducing compliance instead of creating more compliance. Burdens on broker dealers end up being higher costs which end up being passed Price efficiencies are already in the markets regardless of lending rate price discovery of stock loans. This proposal only seems like it will create more volatility in the underlining assets with new lending rates coming out quicker. This new volatility isn’t necessarily price efficiencies.