Jul. 24, 2023
To whom it may concern: Thank you for the time and opportunity for me to provide my comment in regards to 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 want to start by providing a list of CRISIS that happened over the past 2 and a half years: MMLTP – 12/9/22 https://franknez.com/mmtlp-scandal-recognized-as-biggest-wall-street-fraud/ Gamestop – 1/28/21 followed by YOUR report https://www.sec.gov/files/staff-report-equity-options-market-struction-conditions-early-2021.pdf Short interest over 140% “reported” it is well over 400% now due to the botched splividend. Swaps will show this. Archegos – 3/26/21 https://www.thetradenews.com/the-collapse-of-archegos-capital-management/ SVB – 3/10/23 https://www.law.uw.edu/news-events/news/2023/svb-collapse Signature Bank – 3/12/23 https://www.pbs.org/newshour/economy/why-silicon-valley-bank-and-signature-bank-failed-so-fast 2008 Financial Crisis NEED I CONTINUE? A lot of these were also manufactured per the Market observations the SEC provided in this exact proposal! (thanks for it!) https://www.sec.gov/rules/proposed/2021/34-93784.pdf These CRISIS were all: Avoidable, manageable, identifiable/detectable, fixable, and created by leverage. Not ownership of the asset itself, but, it’s derivative. We have rules in place which should have allowed for these to be taken care of. Too bad CFMA was passed in 2000 and the CFTC continues to obfuscate this data that is CRUCIAL to our markets operating in a free and fair manner. Here is the latest garbage that CFTC HEAD ROSTIN BENHAM has done for the US PEOPLE. No action letter extending swap regulation and reporting to 12/1/25. [REDACTED] Facilitating MORE fraud that can damage or destroy the economy. AGAIN. Here is the last press release: https://www.cftc.gov/PressRoom/PressReleases/8618-22. This goes against the mission statement of the CFTC. “ To promote the integrity, resilience, and vibrancy of the US Derivatives market through sound regulation. This just looks blatantly like fraud. If it was not, the data would be released. Also, ISDA and SIFMA went on record stating that every day activities per this proposal would be deemed fraudulent and cause market participants to face two choices. 1) commit fraud , 2) underperform or lack of performance regarding performance contracts with counterparties which would force the participants to NOT PARTICIPATE in the market. I THINK THIS IS GREAT. DO NOT PARTICIPATE IF YOU CANNOT FOLLOW THE RULES. The past 23 years show empirical evidence that the markets are not fair nor are they free of manipulation, fraud, or influence of entities that benefit from the result of their engagement. This has been continually documented throughout the years. Over the past 30 days, there has been a Social Awareness Campaign focused on educating the public on S7-32-10. Currently over 1.3 million people have viewed the campaign. This has generated massive awareness from the general public regarding s7-32-10. All engaged support the proposal in its fullest. I support the proposal and would love to provide additional thoughts: Rule 9j-1: Support this rule as accountability for all is huge. ALL including regulators not just market participants up to their entity creators. Their paid misinformation campaigns via MSM, politicians, etc. Making it unlawful is AMAZING! Thank you for finally doing that! Now, with 10x fine vs notional value and prison time it could actually deter these actions Rule 15Fh-4©: I support this rule. Buying a COO is wrong… on all levels. This can also help avoid more manufactured events that benefit the holders. (so disgusting they destroy everything for a dollar) Rule10-b1: I support this rule but would like to see the REPORTING threshold moved to $0 dollars. Also, ALL data pertaining to ANY SWAP executed MUST BE reported publicly AT THE TIME OF EXECUTION of the swap (entities, terms, notional value, security/ies, counter parties, etc.). Any misinformation released (as it would be manipulation at a minimum and goes against the basis of a free and fair market) must be met with criminal charges plus 10x fine vs notional value to ensure there are no violators. To put it simple: The cost of participating in the SWAP market should be IMMEDIATE and COMPLETE Transparency. WITH NO EXCEPTIONS. If a participant is not willing to conform to these rules and laws of the market place and the public. They will not be, nor should they be allowed in ANY capacity to participate in this market. They should also be faced with criminal charges for trying to circumvent this much needed regulation. PRO Athletes CANNOT juice and compete. The LEAGUE does NOT ALLOW it. It is their way or the highway. The punishment is the players (in this example the player is the institution) inability to make the money they became so used to generating. This is a luxury. If a business model does not fit because it is based on CRIME. It SHOULD NOT BE ALLOWED IN THE MARKET. I support this proposal. I am disgusted with Congress, CIRCA, SIFMA, ISDA, and all of the other market participants that are trying so hardly to keep this market UNFAIR and FRAUDULENT. I will no longer participate in this market if this is not fixed. I have watched over the past 2 years since the Gamestop collusion and fraud happened (1/28/21), seeing that our markets have completely FRACTURED. The wholesalers have control of the Supply, DEMAND, and now, even the TIMING. This is not a free market. The DTCC needs to be audited to ensure that there is a balance with supply and demand and that it is accurately reflected in the market. Not an alternative market where retail cannot trade and asset prices are higher than the markets that retail is trading the exact same asset. This proposal is a needed step in the right direction. In short: I support this proposal and would like to see a $0 reporting threshold. 10x fines and jail time for offenders. NO EXCEPTIONS. THIS HAS BEEN GOING ON FOR 23 YEARS! ENOUGH IS ENOUGH. Also, Accountability is a must. If FINRA finds misconduct, the SEC needs to charge and step in. The cost of doing business cycle of fines and no change needs to be ended. SRO’s are a problem. Everybody needs to be held accountable which includes ADMITTING FAULT. P.S – Ban PFOF ALREADY, re-implement Glass-Steagall, Investigate the DTCC for Securities fraud based on the GME Splividend and MMLTP fiasco, Investigate CITADEL for all of the above. It was their playbook you pasted in the market observations area wasn’t it? Smaller P.P s - Attachments: 1st two documents: Congressional contribution letter from a commenter and second is the congressional engagement letter from congress (I cannot believe they went on record objecting this proposal.) Last document is SIFMA and ISDA stating their participants by the Commission's proposed standard are committing fraud and insider trading DAILY..