Apr. 20, 2022
To whom it may concern, The proposed SR-NSCC-2022-003 rule is absolutely not in the best interest of our markets. This rule, without a doubt, is a coordinated effort to allow onward lending in a bid to continue to ignore our market's failure to deliver (FTD) problem. This rule will exacerbate the FTD problem and allow large institutions to actively suppress organic price discovery through the dilution of shares, brought on by the creation of phantom shares as a result of their FTD. The lending of shares to "fulfill" the obligation of a seller that has FTD allows for more than 1 person to vote on the same share. This could completely change the outcome of an issue being voted on by shareholders and could be used as a point of abuse by unscrupulous actors during the "trimming" of the votes. The FTD issue also shorts the recipient of dividends. Payments in Lieu of Dividends as the result of a FTD are not qualified dividends and do not qualify for the better tax rate. Indirectly harming the recipient of the dividend through a higher and unexpected tax obligation. My brother-in-law recently had this issue as he was unaware that some of his dividends were unqualified due to this very reason. He has decided to stop reinvesting his dividends as there is no benefit (according to him). In the near future the SROs and market makers must correct their abuse of the FTDs. This proposed rule will only allow for continued abuse of FTDs and the undermining of the settlement process. This proposed rule will continue disenfranchise investors and erode the American public and the worlds view of our markets. Please do not allow the continued abuse of our markets by approving this rule. Regards, Justin