April 19, 2022
I believe that this rule change is firmly against the interest of the retail investor and against a free and fair market. The rule is attempting to reduce the upstream risk that is supposed to be inherent in the system to make sure everyone is actually doing their job ethically. Every time you reduce the inherent risk through manipulation with these types of tools, you are actually fundamentally destroying the checks and balances that need to exist. This is a rule that fundamentally undermines a necessary market mechanic of credit/margin calls. Short a particular security, especially naked, and YOU MUST BUY IT BACK. That is a FUNDAMENTAL control on the process. Quit trying to come up with nonsense to manipulate the process and free the bad actors from harm. Bad behavior should be remedied with IMMEDIATE forced buy ins and liquidations.