Apr. 20, 2022
The following is my comment for File Number SR-NSCC-2022-003: The market already lacks transparency and accountability for large institutions, which the SEC should be counter acting as opposed to bolstering. This rule would increase avoidance of true market price discovery through onward lending. It also removes the infinite risk of naked shorting entirely, and in so doing the deterrent of engaging in what is supposed to be very risky business practice. It’s all upside for market makers which excessively naked short securities, and all downside for those on the wrong side of their shorting. This rule does nothing to contribute to a “fair” market. FTDs are already “reset” through a variety of methods such as using deriviatives not allowing them to reach their 30 day mark where the security needs to be “delivered.” This is very frustrating to see rules like this being proposed that only favor reckless institutions. Hopefully you’ll consider the words of retail investors more with your decision making on regulations as the SEC exists to protect, not subvert the fast fleeting, if ever existing free market.