Feb. 13, 2022
I fear this will Obfuscate price discovery and severely damage market confidence. \"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 5 SFT Positions would create a disorderly market in the relevant SFT Securities. In such a situation, non-defaulting SFT Members would not be able to effect a recall or an associated buy-in or accelerate the delayed final settlement obligations. During any such delay, NSCC would continue paying to and receiving from non-defaulting SFT Members the payment for the change in market value of the securities with respect to their novated SFTs.\" The open wording in \"delay its satisfaction of final settlement obligations to non-defaulting SFT Members beyond the normal settlement cycle\" that allows for any length of time delay is unacceptable for an open and fair market. Removing the ability to effect a recall from a publicly traded company \"non-defaulting SFT Members would not be able to effect a recall\" is removing a defensive option from the company in the case of suspected naked short selling that through lax regulation has been allowed. A SRO failed to self regulate, and the plan now is to allow wider controls to the SRO. Please stop prioritizing companies over the public, as this continuing trend is incredibly damaging to our markets public view. This rule is to protect SFT members from being impacted by their fraudulent activity of illegal naked short selling and to harm those being victimized by SHF shorting a stock through the lack of real price discovery in a fair and free market... If you short a stock you must be prepared to face your responsibility of real price discovery as the market react to your disposition - this rule takes away this fairness!