Aug. 13, 2023
Dear Sir/Madam, I trust this correspondence finds you in good health. In today's financial landscape, the adept expertise of professionals and the intricate networks of computer systems interconnecting a multitude of official and unofficial exchanges, including those for cryptocurrency and off-book digital asset swaps, are widely acknowledged. I wish to draw your attention to the current memorandum concerning the Reporting Threshold Amount, which presently designates the minimum disclosed swap value at $70 USD. With a steadfast commitment to upholding transparency and equity within the financial domain, I propose the elimination of any minimum prerequisite for the reporting of asset or debt-based swaps or positions. It is my belief that every transaction, irrespective of its value, should be subject to transparent reporting and disclosure protocols. In this regard, it is of paramount importance that a mandatory, automated daily reporting regimen for all positions be enacted by legislative decree. It is imperative that the obligation to report asset, swap, or debt positions on a daily basis is equally binding on both parent corporations and subsidiary entities. This reporting imperative extends to positions involving both traditional and digital assets, leaving no room for exceptions. To obviate potential loopholes or maneuvers intended to obscure high-risk assets within neutralized positions or affiliated entities, I advocate for the distinct reporting of monetary-valued positions, whether positive or negative. This would serve to elucidate both long and short positions, thereby preventing the exploitation of so-called "offshore safe haven" jurisdictions, notorious for their lax reporting and questionable securities regulations. Any alteration in position magnitude, whether favorable or unfavorable, should be automatically communicated by close of business. Given the extensive automation permeating the financial industry through computerized systems, high-frequency trading, and interconnected networks, the necessity for end-of-day EDGAR filings has long been apparent. Efforts to expedite processing times should prioritize the integration of novel features into automated frameworks, rather than relying on manual intervention. Financial entities, boasting substantial annual earnings, must shoulder the onus of adhering to regulations and implementing requisite software coding, eschewing punitive fines for their actions. A resolute stance against the non-disclosure of financial assets, spanning the gamut from positive to negative, as well as both conventional and digital, is indispensable. All positions ought to be distinctly reported on a per-legal entity/owner basis, with no exceptions tolerated. In order to augment transparency and impartiality for all market participants, this reporting directive should be adopted sans any thresholds, necessitating reporting at the conclusion of every business day a position is instated, altered, or liquidated. Moreover, sanctions for contravening these guidelines should be substantially heightened to dissuade non-compliance. Penalties ought to be commensurate with the unreported position's value, and details of violations and their corresponding sanctions should be accessible to the public. This approach will foster faith in the financial system and empower stakeholders to engage with reliable intermediaries or collaborators, ultimately restoring trust within the market. I implore the Commission to seize this moment to champion transparency and impartiality within the financial realm, not solely within the confines of the United States, but also by providing guidance and support to financial regulatory bodies across other nations, as they strive to cultivate more open and equitable markets. Sincerely, Zoe Gilbert