Oct. 31, 2024
I am in full support of the SEC's proposed rule mandating public disclosure of large security-based swap positions. This rule would help enhance market transparency, reduce systemic risk, and improve investor confidence. The financial markets function more efficiently when all participants have equal access to information that can influence trading decisions. The U.S. stock market has achieved significant efficiency, partly due to regulations ensuring equal access to information for all traders. However, swaps and other OTC market securities are often viewed as venues for trading based on non-public, potentially market-moving information that would be restricted in more regulated environments. The anonymity offered by the OTC markets can contribute to unfair trading practices, destroying market integrity. Ultimately, the liquidity provided by these trades does not justify the market inefficiencies and unfair advantages that result from differences in available information. Ensuring transparency in these transactions will lead to a healthier markets that more participants will then be interested in participating in.