The following Letter Type A, or variations thereof, was submitted by individuals or entities.

Letter Type A:

December 3, 2021

The proposed amendment states, in part:

\"In a case of an SFT Member default, NSCC would be able to delay its satisfaction of final settlement obligations to non-defaulting SFT Members beyond the normal settlement cycle for the purchase or sale of securities to the extent NSCC determines that taking market action to close-out some or all of the defaulted SFT Members novated SFT Positions would create a disorderly market in the relevant SFT Securities.\"

The NSCC has been grossly negligent or even fraudulent in failing to manage the risks in equity liabilities under it. The proposed rationale suggests that an organized but fraudulent market is preferable to the NSCC being required to settle the risky obligations which they have knowingly been collecting returns on for decades. In other words, the presented rationales imply that crime is ok as long as it is organized.

Further, regardless of rationale, the proposed rule change must be rejected for the unchecked conflict of interest it represents. A group should not be able to propose a rule that grants itself unilateral discretion to indefinitely delay its obligations based solely on its own determination of a counterfactual hypothetical situation.

If the SEC approves this proposal and delegates its regulatory responsibilities to the very agency that the SEC is supposed to be regulating, it would represent a shameless act of regulatory capture.

Do your job and protect retail investors that hold the obligations that the NSCC's members fraudulently opened with the NSCC's complicity.

http://www.sec.gov/comments/sr-nscc-2021-010/srnscc2021010/srnscc2021010-263312.htm