Oct. 30, 2022
October 30, 2022 Dear Sir or Madam, The US stock market has long since suffered from layers upon layers of opacity in complicated derivative products that lead to excessive risk concentration within single banks, hedge funds or other large entities that in turn can endanger the entire system. One investment product that is especially opaque and hence is often used to accumulate excessive leverage and hence risk are swaps and various swap based products. One more recent example of the abuse of swaps is the situation surrounding the hedge fund Archegos Capital in which (once again) total return swaps were used to gain excessive leverage which ultimately led to the implosion of the hedge fund and in turn also almost the banking sector. To me it seems completely unreasonable how the existence of the entire global finance system can be endangered by a single party that is only especially skillful in hiding it's true risk exposure and amplifying it until it is too late. If these kind of products that impose such risk on the markets cannot be outright forbidden, it may be at the very least reasonable to make them as transparent as possible to allow for an earlier detection of risk accumulation, ideally preventing this kind of risk exposure for single investing parties completely. Hence, I argue in strong support for rule S7-32-10 as it would increase transparency and availability of data. Best regards, Anonymous