Oct. 29, 2022
October 29, 2022 Increased reporting requirements for swaps is of utmost importance. The counterparty risk global markets face is higher than its ever been due to rampant use of swaps to hide highly leveraged positions by Wall St. firms. The commission needs to go beyond minimum reporting requirements and demand and enforce up to date swap reporting standards industry wide. Full stop. Any and every loophole that hedgefunds and institutional traders use to obfuscate highly leveraged positions needs to be reported and have light shed on the activities for proper market functioning. The risks of a global financial accident are far too high for swaps to go on scantly reported. Daily disclosures are needed to fully illustrate the risks that are present at critical pillars of financial markets. Any push back of reporting requirements costs or lack of efficiency nonsense that institutional traders will use to justify limiting disclosure requirements need to be thrown out and ignored. Look at what has happe ned to global supply chain networks since the pandemic- systems built only for efficiency and cost cutting were proven to lack the resiliency needed to adapt to quickly changing global economic conditions. Just in time global supply chain networks failed at key points causing market failure, the same analogy can be made by listening to arguments of reducing reporting requirements for efficiencies sake and for the SEC to allow major institutions to leverage their power and put global economies at risk by hidining risky swap positions will prove to be a similar catastrophic event. Thats a when not and if. Increased reporting requirements and strict enforcement of said requirements is not only needed to protect public retail traders but the global financial markets themselves.