April 20, 2022
Comment on SR-NSCC-2022-003
The market already lacks transparency and accountability for large institutions - I am disappointed as a taxpayer and retail investor that this rule is being proposed, especially in light of how similar this is to the proposed and withdrawn SR-NSCC-2021-010.
This rule would increase the avoidance of true market pricing through onward lending. It completely removes the infinite risk of naked shorting and by doing so, any deterrent, that has been purportedly established by our government agencies and their rules/policies, of engaging in very risky equity markets practices.
Under this proposed rule, market makers have no financial or criminal penalties for excessively naked shorting securities and places all the risk on those directly affect by this shorting. This is not a \"fair\" market this is not a \"free\" market when rules are being proposed to actually encourage continued naked shorting of securities.
FTDs are already reset through various methods (e.g. derivatives), not allowing them to reach the 30 days mark whereby the security needs to actually be delivered.
Once again, after the blatant protection of reckless market makers and financial market participants at the expense of retail investors in 2008, I am disgusted to learn of proposed rules once again favoring reckless and irresponsible financial institutions.
It is my hope that the comments of the educated retail investor community will be strongly considered during your regulation proposal decisions - the SECs role includes protection of the retail investor community and not building regulations to allow financial institutions to continue their reckless behavior, knowing there are no consequences for their actions.