Apr. 21, 2022
I absolutely OPPOSE the passage of this proposed rule. There is no reason for short positions to be closed on a price for difference model because it allows short players to skirt the rebuy of stock and completely halts price discovery because those shorts are STILL IN EFFECT when determining the difference in current price vs price shorted at. It completely circumvents the idea of repurchasing stock you are short to close. There is a place where that type of wager is available and its the futures market. Letting Shorts reap full rewards when the company they short sinks to 0 and then letting them close for a fraction of the cost they will pay when the company turns around is antithesis to a free market. Look at Tesla for reference. If shorts were simply allowed to close for a price differential when they wanted to get out, long shareholders would not have reaped the rewards that they did when the shorts got squeezed. It is literally taking money out of the pocket of the longs(Wall Street/RETAIL) to give to major short players(ONLY WALLSTREET). Literally just fleecing individual investors on behalf of behemoths. Sickening proposal.