April 20, 2022
The market is already lacking in transparency and accountability for large institutions. I am beyond disappointed in this rule and currently lack all faith in our markets, as well as the means to protect investors.
The rule would decrease, already dismal, true market price discovery through lending. It removes the infinite risk of naked shorting entirely, and any deterrent to engaging in what is supposed to be a very risky business practice. You are giving a green light, and removing all consequences, for doing this.
It is all to the benefit of market makers who excessively naked short securities, and all downside for those on the other side. That is usually retail investors like me. How does this rule help to make our markets fair for all? Or is it only fair for the big money players?
FTDs are already 'reset' through a variety of methods such as using derivatives not allowing them to reach the 30 day mark where they have to be 'delivered'. This in itself should be illegal and you want to make it even easier for them to be 'never delivered'.
This is absolutely in no uncertain terms unacceptable and unfair to the investors like myself who rely on the rules to be fair and transparent for all. We expect and demand better fair markets. This rule does not deliver that.
This rule needs to not be enacted, passed, or even contemplated ever again. This is the third try. We are watching and learning. While doing so we expect any future rules, regulations, and actions to counteract the protections of the big money market makers and truly be in the benefit of all investors. Do better.