Oct. 08, 2022
October 8, 2022
Dr. SEC,
I am in strong support in the reporting of security loans. Telling investors which stocks they own are lent out and which ones are not.
It is already on the books of the brokers and they have been loaning them out regardless of our objections and recently implemented measures to ask for our consent to loan them out while they pocket typically 50% of the interest rate making the transaction practically worthless to most investors.
IMO there should also be a option to restrict securities from being loaned out even in a margin account. Thus it would just bring the security margin to 100% meaning the margin is unusable.
market makers should also be forced to disclose how much of a security they have provided liquidity to preferably by the EOD or if possible real time. It's all on the books therefore can be done in real time except they will not due to market maker exemptions from finra thus causing fail to delivers and promotes fail to delivers eg naked shorting by the market makers while many also have the ability to conduct PFOF thus creating insider trading which the SEC should in fact punish the market makers severely meaning removing their licenses and removing all revenue and profits, for but has of yet.
please consider these comments thank you.