July 27, 2023
Dear Ms. Countryman,
I write to express my strong opposition to the letter sent by certain members of the U.S. Congress regarding the Securities and Exchange Commission's proposed rulemakings on security-based swaps and securities loans. It is deeply concerning to witness such an attempt to influence regulatory matters in a manner that disregards market transparency and the SEC's core mission.
The reputation of the authors of the letter raises significant doubts about their true intentions. Reports of corruption and ineptitude surrounding these members of Congress undermine their credibility and raise suspicions about their motives for opposing the proposed rulemakings. It is essential for regulatory decisions to be made based on the public interest and sound judgment rather than driven by self-serving agendas.
The proposed rules are grounded in the fundamental principles of the Dodd-Frank Act, aiming to bolster market stability and protect investors from future financial crises. Transparency is a cornerstone of this legislation, and publicly disclosing positions in security-based swaps and securities loans is a step in the right direction.
By making this information available, regulators can effectively monitor the markets, detect potential risks, and safeguard against market manipulations.
Claims that such disclosures would hinder market liquidity and efficiency lack substantial evidence.
In reality, transparency promotes a level playing field and fosters trust among market participants, leading to more efficient and competitive markets. It is essential to prioritize the interests of the broader public over the concerns of a few vested interests.
Delays in implementing these rulemakings would only perpetuate the lack of transparency in these critical markets, leaving investors vulnerable to hidden risks and fraudulent activities. The SEC must remain steadfast in its commitment to protect investors and maintain market integrity.
In conclusion, I firmly stand against the letter's arguments put forth by certain members of Congress. I urge you to continue your dedication to upholding the SEC's mission, promoting transparency, and ensuring the stability and fairness of the U.S. financial markets.
Thank you for your attention to this matter, and I trust that the SEC will prioritize the interests of the broader public in its decision-making process.
Sincerely,
F.O.