Oct. 29, 2022
October 29, 2022 I thank the SEC for their initiative regarding this Proposed Rule. I believe that a free and fair market requires complete transparency, as it is imperative that all participants be able to make a fully informed decision regarding what to do with their capital. I strongly support this rule and praise the Commission's explicit effort towards preventing evasion of any provisions within this rule as a rule is worth nothing if it can be easily evaded, and I urge the Commission to adopt more rules of this type in the future. The public disclosure of swap data is paramount to ensuring trust in the market for all parties, big and small, as large swap positions are a threat financial and national stability. With the recent collapse of Archegos Capital Management, this has only become even more clear. ACM exploited undisclosed swap positions to create a massively overleveraged position. The moment that the position moved against them, they collapsed and we saw a great deal of volatility in the market. Archegos was not even a particularly large firm all things considered, yet the impact its collapse had on the market was substantial. With swap data not being public, there could be an untold number of financial bombs lurking under the surface. We are lucky that Archegos' collapse was fairly contained all things considered, but this is not guaranteed to be the case with how interconnected the markets are these days. I request that the threshold for this rule be lowered to $100 million / $200 million gross, as a lower bar will greatly reduce any fraudulent actors' ability to spread a deal across a variety of swaps. There is no harm in a lower bar, as a swap of that magnitude is still significantly large. The application of this rule towards international funds would also be greatly beneficial, as no firm should be allowed to use borders to evade the rules of the market. If they operate here, then they must abide by the Commission's rules. I would also like to encourage that the Commission to expand this proposal to entire portfolio swaps, rather than just the individual parts. The application of precedent set in Rule 13h-1 regarding \"large traders\" would be beneficial, as looking at a firms' entire position is the only way to get an accurate idea of what is going on. A firm that takes on excessive risky swaps that each fall below the threshold of this rule goes against the spirit of this rule, the Commission's prior rulemaking, and still poses a great financial risk to the market. Furthermore, the Security-Based Swap Position should be expanded to include ALL security-based swaps based on the same underlying entity, regardless of whether they are debt or equity based, as firms should not be allowed to skirt the rules via a variety of complex financial instruments. Lastly, I explicitly support the wide definition of security-based swaps as it must be sufficiently wide to thwart off any attempts at evasion. I strongly support the public daily reporting requirement and I praise Commission's initiative regarding this proposal. I urge the Commission to implement the rule with haste, and to continue developing rules of this type in the future. Thank you, Kat Retail Investor and Financial Analyst