Apr. 20, 2022
As an European retail investor, I strongly oppose this proposal. This proposed rule change significantly increases share lending without accountability for bad actors. It seems like the primary purpose of this rule is the further avoidance of market price discovery through onward lending. It basically removes the infinite risk of naked shorting – therefore also removing a strong deterrence to something which is supposed be very risky (and very illegal). This proposed rule change only benefits bad actors in our markets. There are only negatives for those trapped on the wrong side of their shorts. This proposal is a prime example that the rules that are supposed to govern our “free” markets, are not created by retail, but by Wall Street and its bad actors. They use the complexity of these rules to their advantage. This rule is just another example of leveraging complexity to fleece over retail by keeping them ignorant. To sum it up, I strongly oppose this proposal and it needs to be withdrawn. It is despicable what this proposal would mean for the average retail investor. ~a retail investor from Europe
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