July 18, 2023
Dear Sir/Madam,
The daily reporting of all positions should have been mandated by law to be submitted automatically on a daily basis.
Ownership of such positions by either parent companies or subsidiary entities should not grant any exemptions from the obligation to report asset, swap, or debt positions on a daily basis.
Both traditional assets and digital asset positions should be reported without exceptions.
Any position that carries a monetary value, whether positive or negative, should be reported separately to indicate both long and short positions, thereby preventing the exploitation of loopholes or technicalities through the concealment of high-risk assets within zero-balanced positions or subsidiary, shell, or shelf companies. Presently, global financial system participants engage in these practices in so-called \"offshore safe haven\" countries that have questionable reporting, fraud, and securities laws.
Any change in position size, whether positive or negative, should be automatically reported by the end of the business day.
It should have been a legal requirement for EDGAR filings to be submitted at the end of each business day.
Complaints regarding the amount of time spent processing these transactions should be dismissed as unfounded.
Calculations regarding the costs of labor should primarily consider the implementation of new features within the automated system, as opposed to relying on human labor. Financial participants, who generate hundreds of millions or billions in annual profits, are more willing to pay substantial fines for financial malpractice, as defined by FINRA rules, rather than investing a fraction of those amounts in adhering to the law through the implementation of new computer code.
The commission should adopt a strict stance against the non-reporting of financial assets, whether positive or negative, and regardless of whether they are traditional or digital.
All positions should be reported separately for each legal entity or owner, without any exceptions.
Given the proposed rules aimed at enhancing transparency and fairness for all market participants, this reporting rule should be established without a threshold and require reporting at the end of any business day during which a position was opened, modified, or closed.
Moreover, the penalties for violating these rules should be significantly increased to be at least ten times the value of the unreported position, per violation, and be made publicly accessible. This measure will foster an environment of trust within the financial system, enabling participants to conduct business in the United States with reputable intermediaries or partners and restore confidence in the integrity of the market.
Additionally, the commission should seize this opportunity to offer assistance and guidance to financial system regulators in other countries, aiding them in creating more transparent and equitable markets, as the issue at hand extends beyond the boundaries of the United States of America.
Thank you,
Kevin