Oct. 31, 2022
October 31, 2022 In regards to the proposed rule S7-32-10 this rule is now more important then ever since the Commodity Futures Trading Commission is hiding swap data until 2025. This information that is being hidden is extremely valuable for a multitude of reasons and therefore, this proposed rule needs to pass immediately. First off, transparency is badly needed in regards to swaps data and this information needs to be made PUBLIC for everyone to see it. Recently there was the Archegos situation which I'm sure there are currently many other entities that have similarily dangerous swap positons. This rule also mentions a threshold for needing to report swaps which needs to be lowered to 100 million gross. The proposed threshold could easily be mitigated by spreading the swap out and while this rule prohibits that, lets be honest it will still happen, and the fines will be minuscule. By providing the public with this data and lowering the threshold the public can help you detect potential fraud. This rule also needs to be applied internationally otherwise larger firms will just move the swaps overseas and make this rule effectively useless. Additionally, you need to look at the entire swap portfolio to determine reporting requirements and not just parts of the swap. The Commission should follow the precedent in Rule 13h-1, which identifies large traders using the traders entire position in all NMS securities. Also, the Security-Based Swap Position needs to include all security-based swaps based on the same underlying security or reference entity, regardless of whether they are debt (including CDS) or equity-based, so that funds and firms cannot evade reporting requirements by using different types of complex financial instruments. I also support the definition of security based swaps and that it must be appropriately wide to minimize evasion. Finally, I agree with the daily reporting requirements and the Commission should absolutely utilize its authority under Section 10B(d) of the Exchange Act to publicly release data. Entities against this rule will complain about the reporting requirements and thresholds being to much of a burden but that is a poor excuse when this data is much needed for everyone to be better able to detect fraud, be better informed about financial decisions they are making, and to truly make a better, fairer, and more transparent market. Thank you.