Feb. 09, 2022
As an individual retail investor, I fully support the proposed rule S7-32-10, "Prohibition Against Fraud, Manipulation, or Deception in Connection with Security-Based Swaps; Prohibition against Undue Influence over Chief Compliance Officers; Position Reporting of Large Security-Based Swap Positions". For the current market to regain its credibility, there needs to be changes to make the markets fairer and more transparent and this rule is a small step in the right direction. It has become more and more apparent that there is a lack of transparency and oversight of the derivatives markets. There is no opportunity for true price discovery as the valuation of equities continues to be manipulated by high frequency algorithms directed by hedge funds (who are also market makers). Punishments are not reflective of the damage they cause, both monetarily, and to the reputation of the market as a whole. The current fines market makers/hedge funds receive, for a lack of disclosure, failure to deliver borrowed shares, or naked short selling in the derivatives market, are so small they are a ‘cost of doing business’ rather than a deterrent. The SEC has an opportunity in this moment to make markets fairer to the American public and retail investors worldwide. Thanks Sincerely W Castrey