Aug. 9, 2023
Dear SEC Commissioners, I am writing as a retail investor to provide my comments on File Number S7-32-10 related to Large Traders and their reporting requirements. I want to express my cautious optimism in regulatory changes that are aimed at increasing transparency in the securities market. The S7-32-10 regulation, which is designed to monitor the trading activity of Large Traders, is a step towards holding market participants accountable and ensuring fairness in the market. However, I also want to bring up potential concerns that must be addressed for the regulation to be effective. Firstly, enforcement is crucial. For the rule to positively impact the market dynamics, it must be enforced earnestly by the SEC. Without strict enforcement, regulations could risk being overlooked or circumvented without significant consequences, thereby failing to protect the interests of average retail investors like me. Secondly, there needs to be substantial consequences for those who violate this rule. Without severe penalties, some participants might consider it a cost of doing business and persist in harmful behavior that disrupts market fairness and transparency. Lastly, the issue of trust needs to be addressed. The consistent lack of enforcement and consequences has led to a significant loss of trust in the market among retail investors. Strict enforcement of rules like S7-32-10 will help restore faith in the securities market. In summary, while regulations like S7-32-10 are a positive step towards an equitable market, their impact on retail traders depends heavily on effective enforcement and consequential penalties for rule breakers. I look forward to seeing how the SEC navigates these crucial aspects of regulation and enforcement moving forward. Sincerely, Robert Bonita