Apr. 20, 2022
While it is no secret that Wall Street is a 100% rigged game where the elites always win, this proposed rule change would allow them to cover themselves and continue to win at the expense of investors, the people you represent. This rule effectively creates a darkpool for the short party during a short squeeze or forced share buyback (dividend, recall, etc.) It allows them to pay their debt in cash, based on daily share price, instead of buying shares on the market, which would increase the share price. NSCC is recognizing that predatory short attacks are becoming unsustainable, and they want to take the squeeze payout before retail can get it. They're offering to take on the short parties' debt so it can be paid off over years instead of all at once. DTCC/NSCC gets the money, retail gets the shaft, and SHFs get to erase billions of dollars in losses. This proposal, if enacted, would actively incentivize fraudulent market behavior by opening up a loophole in which covering Failed To Deliver Shares would no longer be reflected in the price of a security. The changes in this proposal can and will be abused by bad actors in an effort to further negate accurate price discovery, to the great detriment of all retail investors. THIS CAN NOT BE ALLOWED TO PASS. Wall Street already uses numerous questionable tactics like dark pools, hiding synthetics shorts inside ETF's and more, but this rule basically says "Oops, we got caught, but we're changing the rules, again. You lose." THIS CAN NOT BE ALLOWED TO PASS. I understand that the government and agencies like the SEC, make the rules to ensure a fair and level playing field. That is anything BUT the case. The SEC is toothless. When you impose a $50 million fine for actions that a hedge fund made $2 billion off of, that fine simply becomes a cost of doing business. It is not a deterrent. Add to that the fact that the FBI, who is supposed to investigate securities fraud, as it is a federal crime, does nothing. The DOJ is right there with the FBI. Let's cap off this tale of complicity with the Secret Service. If a guy counterfeits $5 bills he goes to prison for 20+ years. When hedge funds counterfeit tens of billions in synthetic shares of stock, they get to change the rules? That is simply incomprehensible. If this rule change is allowed to pass it will essentially be stealing tens of billions of dollars from investors. Perhaps the House Financial Services Committee can get involved? Maybe let the SEC know that people are aware that this is a rule change that favors the 1% on Wall Street and that we're opposed to this rule change? Isn't it time our elected officials started looking out for the people? It is long overdue. We demand better. Andrew Ho