Oct. 09, 2022
October 9, 2022
I would like to voice my support for the proposals put forth in S7-18-21.
As an individual retail investor trying to make the best choices in my personal investments, I have become increasingly aware of the dangers present in the practice of short selling securities. While the practice should, in a perfect world, be a countervailing force that helps to protect and maintain the integrity of a complex market system by giving balance to long investors, given the failings of real flesh-and-blood human being, I fear the opportunity to exploit, manipulate, and commit fraud is much too available to bad actors without stronger regulatory practices in place around this particular form of investment.
I appreciate the greater transparency proposed in the rule change, especially as it relates to the 15 minute reporting requirements and the transaction-by-transaction reporting change.
Our markets absolutely function best in the full light of transparency and fairness, as the United States stock market is a market for all and not just a few. Short sellers that are allowed to operate in the dark by hiding transactions in aggregates and with little visibility harms true competition and honest price discovery. This hurts retail investors, hurts businesses, and damages faith in our institutions.
A large swath of retail investors are entrusting ourselves to regulators to bring more openness to a market that at times feels replete with difficult-to-monitor actions, that are seemingly obscure and layered in complexity to dissuade those who want to learn more. I am one of those that is learning more every day and I hope through the proposed actions, that gathering data to make informed investments becomes more accessible than ever.
I am glad for the new rule proposal and hope that my voice can be added to the many who are hoping for greater transparency.
I fully support S7-18-21.
Warmly,
Adam