Oct. 29, 2022
October 29, 2022 I support this proposal and praise the effort of the SEC into preventing evasion of the reporting rule. It is critical for all investors to have transparency and public disclosure of this data. As demonstrated by the Archegos incident earlier this year, excessively large swaps are often a threat to financial stability writ large. This rule may ameliorate this grave concern. I urge the SEC to adopt similar rules for greater market transparency in the future. However, I am concerned that market participants will seek to evade this rule by spreading a large swap out to evade the threshold. As such, the threshold should be lowered to $100 million ($200 million gross). This will allow the public including scrupulous \"retail investors\" to detect fraud more readily. I would not wish to see this rule \"watered down\" in practice given its immense importance in fraud prevention and risk management. This rule should be applied internationally so funds and firms cannot use borders to evade the rules of the market. The entire swap portfolio should be considered in order to determine reporting requirements, not just parts. The Commission should follow the precedent in Rule 13h-1, which identifies large traders using the traders entire position in all NMS securities. The overall picture of a traders appetite for excessive risk can only be formed by looking at their total swap position. Allowing large traders to take on excessive risk via swaps in many different individual securities while avoiding reporting requirements is against the spirit of the rule, and goes against the Commissions prior rulemaking. Security-Based Swap Positions 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. Funds and firms should not be permitted to evade reporting requirements by using different types of complex financial instruments. I agree with the definition of security-based swaps. This definition must be appropriately wide to minimize evasion. I agree with daily reporting and praise the Commissions public release of the data. A more level playing field is in the public's best interest. The SEC should finalize this rule hastily. Thank you for reading and your consideration.