Oct. 30, 2022
October 30, 2022 Commenting on Proposed Rule: S7-32-10 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 I'm writing this comment to say that I support this proposal. I support anything that brings more transparency to the markets, helps to make them more fair, and helps to protect investors (particularly the small retail investors). I'm pleased that this proposal has put in some effort to address potential evasion of reporting requirements. I firmly believe that any attempts to circumvent such requirements, to abuse any possible loopholes, or just in general do anything that isn't appropriate for a fair, free, and transparent market such be severely punished. By punished I don't simply mean fines. Fines should simply be a starting point. Jail time, suspension, and premanent removal from the markets should also be possible punishments. Overall I can't state enough how imporant transparency is to a fairly functioning market. Any and all data should be required to not only be ACCURATELY representing a position, but it should also be PUBLICLY disclosed. I feel that undisclosed swaps, especially those which are excessively large are a major concern due to the potential threat they pose to the financial stability of your markets and our nation as a whole. The financial sector national, and even globally, is rife with ominous and sketchy events taking place lately. Melvin Capital, Evergrande, Archegos, Deutsche Bank, Credit Suisse, etc. I don't know fully what is going on with these groups but they all seem to have been involved in significant events lately. I don't know how much of their situations are tied into swaps (obviously due to the lackluster reporting and data publicly avaialble) but it really concerns me as to what all, and how many, potential \"ticking time bombs\" there could be waiting to the just below the surface of our markets. This is especially concerning with how tied together financial institutes, banks, hedge funds, etc all appear to be. I hope that going forward there will be more proposals like this coming. I also hope that they are more strict and that they focused even more heavily on providing transparency and fairness. I see that a threshold of $150 million is being proposed. I think that is too large and allows for too much potential to skirt the rules and reporting. I'm very concerned about the potential for collusion between multiple actors working together to allow them to, combined, acquire and hold a large and risky position. I don't know how this could prevented but I would strongly urge a vast increase in the amount of data publicly available to allow for an increased chance of such occurances being detected. I would STRONGLY support this being done internationally. Our markets are not simply a national thing its a global financial market. If the rules only apply in one place then those who intend to abuse or circumvent these rules will simply do so in another location. Roaches and other vermin love to run from the light as it were. I believe that Security-Based Swap Positions include all security-based swaps regardless of whether they are debt / CDS / or equity based. Measures should be taken to ensure that funds can't use complex financial instruments to evade reporting requirements. A funds entire swap portfolio should be taken into accout and not just a portion of it. Without seeing the entire picture its not possible to gauge the level risk at play. Overall, while I agree with the definition of security-based swaps I believe that it must be a broad definition. Don't allowed it to be narrowed in scope or that will simply allow evasion of the rules. I agree with the requirement of daily reporting and fully support such data being made publicly available. Any data publicly disclosed, especially if its actually accurate data, helps to further the beneficial goal of greater transparency in our markets. Please do no allow this rule proposal to be delayed any longer than absolutely necessary. With the concerning state of our (and the global) market and the abysmal level of trust and honesty in the markets I think this should absolutely be put in to action as soon as possible. In further regards to data completion, accuracy, and reporting times There is ZERO reason, NONE AT ALL, that any data for ANY activity performed in the markets, CAN'T or SHOULDN'T be provided, not just \"same day\