Oct. 30, 2022
October 30, 2022 October 29, 2022 Vanessa A. Countryman Secretary U.S. Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 2054991090 rule-comments@sec.gov Re: Release No. 3494784 File No. S73210. 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 Ms. Countryman: Thank you for the opportunity to comment of the proposed rule regarding Prohibition Against Fraud Manipulation, or Deception in Connection with Security-Based Swaps etc As a retail investor I appreciate and applaud the efforts of the SEC to continue to propose more clarity and openness to the market system. I also want to applaud the provision intended to prevent evasion of the reporting requirement Rule 10B-1(b)(4). I am commenting to voice my vote for the SEC to not only enact this new rule, but further to praise the proposal of reporting of security-based swap positions that exceeds the specified threshold to promptly file a scheduled disclosure of (1) the applicable security-based swap position (2) positions in any security or loan underlying the security-based swap position and (3) any other instrument relating to the underlying security or loan, or group or index of securities or loans and making this information available to the public. I believe this is a fantastic step in creating more transparency and oversight as well as helping to ensure trust in the market structure in individual retail investors like myself. With institutions having so many financial instruments and tools at their disposal, the temptation to manipulate or conceal information at the least is just too great and the current reporting on Swaps positions is likely the most clandestine of instruments. Swaps have long been known to be an avenue of obfuscating positions held by institutions and historically it is not difficult to see the effects this has had in increasing counterparty risk, blindsiding unknowing investors, as well as negatively impacting the overall economy. The lack of reporting of swaps positions has continued to be a haven for less than ethical and more aptly downright criminal activity where institutions have use loopholes in language, reporting mandates and the general lack of clarity as a means to take on positions of in many cases infinite risk. The lack of reporting of this data has long given institutional market parties an advantage, but also the opportunity to place the counterparties they may represent in positions of risk that would otherwise never be allowed this was abundantly clear in the 2008 crisis as well as the recent Archegos Capital fallout. As an individual investor the data that is available to make educated investments becomes almost completely untrustworthy, when large institutions are continually allowed to misrepresent or fail to report positions of swaps or other derivatives. If an institution is putting itself in a high risk financial position via swaps and this is unreported, how can their shareholders feel confident that they are not going to be left holding the bag when/if those positions turn on them. I believe this is what we are seeing currently happen with Credit Suisse and what in the past happened with Lehman Brothers. Furthermore, without proper reporting of these positions how can market participants feel confident that they are making investments based on current and honest data points. I believe that this rule should be enacted and institutions should be reporting on large concentrated swap positions and that they should be reported by the End Of the First Business Day after the swap was executed on anyone with a position larger than $150 million dollars. I further agree and believe that this information should be made publicly available IMMEDIATELY UPON Filing and evasive tactics IE international positions must be reported as well. The time for further market transparency is upon us, all market participants should be entitled to have current, transparent, and honest information if they are to rely on and participate in the financial markets. Thank you Again for your efforts and the opportunity to comment on this proposed rule. Sincerely, Dallas Henderson