April 20, 2022
As of now, I believe that the market lacks the proper enforcement and rules that can properly regulate and monitor accountability of risk undertaken by large institutions. Rule SR-NSCC-2022-003 is not only detrimental to a transparent and fair market, but hindrance to the trust the investors place on the financial markets. The proposal of a SFT will not only allow large institutions to escape and hide their exposed risk, but not benefit the regular retail investor.
Who can use these types of securities? Only the large institutions who have time and money to create them. Retail investors are left behind and possibly presented with these SFTs as beneficial. It appears that this is not the first time these type of securities have been suggested, and it is a sign of desperation. Desperation to hide their risks, and to own up to their mistakes.
As an individual investor, I urge the SEC to stop this. Please do your job.
D.L.