April 20, 2022
I am strongly against this proposed rule of the NSCC. Which was proposed last year and was removed from the proposals this year.
This rule is proposing that large institutions, lenders, brokers, etc. will not take accountability for their actions of excessive and predatory lending of securities when the time comes to owning up to what they have done within the markets.
Creating IOUs and putting them into the market for securities that are already lent out and needing to be paid back does not create fair or safe markets for all who are involved. Fail to delivers have to bought back into the market. Not allowing excessive shorting/price manipulation to get off free from their actions.
It creates way more risk to the investor as these institutions are continually creating shares to lend out of thin air and doing what they please with those shares. If they \"lose\" because of their risky bets and have to pay up, this rule will help them get out of what they caused themselves. Continuing terrible market practices like excessive shorting day after day. This needs to be adressed ASAP.
This does not create price discovery, it totally negates the concequences of risks the \"experts\" are creating while taking away from peoples hard earned money within the markets. The people are very aware of what has been happening in our markets and it's time for the SEC and government to take a stand for what is right and the law. We the people are tired of the everlasting manipulation of the whole system.
SEC, protect the investors and the market as it is your job. This proposed rule does not do any of that. It only protects the actors who are putting the markets at risk in the first place.
Thank you and God bless.