Apr. 20, 2022
Dear reader, One of the elements of the new NSCC proposal SR-NSCC-2022-003 is that those who have excessive 'Failed-to-deliver's (FTDs) from making a bad bet via short selling, and not having the money to pay for the borrowed share that was sold, can simply make the NSCC a counterparty that takes on that risk. Aside from encouraging bad trading by those who have the kind of capital to do this, it also allows for a criminal level of naked shorting, a lack of trust in the stock market by those on the other end of these perpetual short sales, as well as more and more money being siphoned out of the legitimately productive businesses with public stock. With the penalties of breaking SEC rules already being a fraction of the profits made by bad actors, this proposal is simply a greenlight for more white collar crime. The lack of trust in the stock market has already grown quite heavily over the last 10 years, and the mistakes made in 2008 and 2018 still haven't been corrected, with many of the criminals that were associated with people like Bernie Madoff and the Lehman Brothers not being charged for committing the same crimes that are still happening today. The only reason most people still invest in the stock market is to attempt beating inflation, but with solid companies repeatedly being naked shorted to bankruptcy(Sears, Toys'R Us, Blockbuster, etc.) there's very little reason for retail to keep investing. Yours truly, Valentin Elsaesser