April 20, 2022
SR-NSCC-2022-003 is a rule designed to add additional layers of complexity to an already absurdly complicated market.
Locates should take place on shares loaned, period.
Any situation where securities are borrowed and not returned is another opportunity for a Failure to Deliver.
There is no other facet of society where people are allowed to not pay their debts such as what transpires on wall street. Stop providing entities with the ability to compromise the free market with infinite loopholes.
The next time hedge funds or market makers take a short position (which carries infinite downside), perhaps they should more accurately assess their risk parameters, instead of trying to change the rules after their hands are caught in the cookie jar.