December 3, 2021
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.