Oct. 31, 2022
October 31, 2022 As an investor in the US and Global financial systems, I believe that all participants should have equal investment opportunities. Of particular importance is access to information that is representative of reality. Transparency and honesty around financial reporting, especially for Swaps and other derivatives is key to accurate price discovery. In particular, accurate reporting allows all participants to properly assess the value of securities and make decisions grounded in fact. Fraudulent or inaccurate reporting, especially in the instance of security-based Swap positions allows certain participants to misrepresent the demand and supply of the underlying securities, as well as conceal utilization. Without this information, investors are unable to determine the true supply, demand, and value of a security. To improve enforcement of accurate reporting it is necessary to set a precedent of persecuting bad actors in this space - it is not enough to fine bad actors/institutions, as the fine becomes the cost of doing business. To deal with these issues, it is key to add criminal penalties and hold individuals accountable for their actions. In addition, institutions that systematically break the rules should have their broker-dealer and market maker statuses revoked.