Aug. 7, 2023
RE: 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 Dear Securities and Exchange Commission, Implementing this rule is vital to restoring integrity to our global markets. The securities-based swap system, as it operates today, destroys the scarcity of securities. This makes their value arbitrary and as a result has become a degenerate source of manipulation and fraud. When American tax payers buy stock in a company, it’s an expectation that they own a number of scarce notes that represent a portion of a company’s assets. How can that be true, when a fund is able to take a leveraged position in a company, and then obscure it in a swap contract? The effects of this foul play are elementary to understand, which emphasizes the absurdity that this practice continues to be allowed. If it is possible, in any way whatsoever, to rob and coffer the allocation of investor capital into a company by manipulating the amount of shares available of that company, then our markets will become a stagnant feeding ground for financial parasites. As a tax-funded organization, the SEC’s purpose is to protect the people that make sacrifices to uphold it and other institutions of the country. Most of these tax payers are working people and investors that want to believe in American markets. With the modern technology we use today, it is a reasonable expectation that all shares of companies should be at least traceable, if not publicly registered. Securities-based swaps make this impossible, and so the proposed rules are a step in the right direction. Sincerely, A Household Investor Sent from Mail for Windows