Apr. 20, 2022
Dear Sir or Madam: This proposed rule change seems to further insulate bad actors from the consequences of the riskiest and most reckless behavior within our markets today. The inherent risk of carrying massively overleveraged short positions with significant borrowing fees that have the potential for infinite loss while piling up massive amounts of Failure To Delivers should be deterrent enough. Instead, thanks to all the seemingly unethical intentional complexity, multiple avenues for rehypothecation, obfuscation, and non-disclosure, this trading strategy has become the de facto law of the land in modern equity markets. To approve this rule change is to make the statement that privatized gains and subsidized losses are a very, very real thing. It would illuminate to the world that the US markets are nowhere near Free or Fair and that price discovery will always be controlled by those with the power to pay penalties (i.e., "the cost of doing business") and who can lobby to empower those who can enact lopsided rule changes such as SR-NSCC-2022-803. When I, a retail investor, make a bad market bet - over-leveraged or not - I lose money and learn a hard lesson. This rule in no way reflects that sentiment for anyone but people such as me. I made a bad bet. Hedge Funds have a way out due to size & power. The market MUST be even for everyone in order to function properly. I know many, myself included, who will never invest in US markets again if rules like this one - a massive finger on the scale - pass. Thank you for your consideration. Respectfully, Bradley V. Schmidt