Aug. 3, 2023
Dear Ms. Countryman, I fully support rulemaking proposal S7-32-10. As a matter of fact, I suggest the SEC propose another rule that would lower the reporting threshold for swaps and swap-based securities to zero. If you dont hold hedgefunds accountable you will have same thing from 2008. Who is holding the ticking bomb from GME's 200% short period? Is it UBS this time now since CS went down? Hot potato... Here's why: According to this publicly available court filing here: Case 1:22-cv-03401-JPO Document 33-1 Filed 09/02/22, (URL: https://storage.courtlistener.com/recap/gov.uscourts.nysd.578896/gov.uscourts.nysd.578896.33.1.pdf) anyone can review the kinds of swaps and custom basket swaps that Archegos Capital has held before going under. It is likely that those swaps are now held by UBS which was recently forced by the Swiss National Bank to merge with Credit Suisse, Archegos's Prime Broker. Funny how a central bank can "force" bank acquisitions, don't you think? With a little bit of research on internet forums such as reddit's superstonk, anyone can research which stocks (or rather stonks) those baskets might have contained. Highly competent institutional investors as well as unsuspecting and very unprofessional household investors would be able to invest in certain stonks, and wait it out until UBS gets rid of the swaps -- or disintegrates, just like Credit Suisse before it -- or gets gobbled up by a much bigger bank, such as John Pierpoint Morgan's Chase Manhattan Bank, the Swiss National Bank or Federal Reserve System. Just saying, because, that would be totally unfair. So, please increase the transparency into swap-based securities so that such a kerfuffle doesn't happen again. Thank you for your time. Kind regards from retail that was robbed in broad daylight when buy button was shut off back in Jan 28 , 2021