Apr. 21, 2022
I am reaching out regarding the NSCC's recently proposed rule outlining the development of a new clearing service called a Securities Financing Transaction (SFT). As I'm sure (or at least hope) you are aware, the US stock market is currently tainted with millions of Failure-to-delivers (FTDs) which allow brokers and market makers to mark sales of securities without ever providing those assets to their customers. The NSCC's proposed solution of SFTs, as I understand it, would allow these institutions to continue avoiding delivering on these FTDs in the event of a fire sale, further tainting the integrity of our markets. As an institution that is charged with protecting the integrity of our capital markets (although your ability to do so is highly contestable), I implore you to motion for the NSCC to withdraw their proposed rule change. The more I learn about the SEC and US capital markets as a whole, the less I believe in the 'free market economy' that I was told as a youth that we enjoy, and the less I believe in the institutions that are responsible for overseeing their integrity. I believe this moment marks a crossroads for the SEC where you can choose to uphold your duty and not allow bad actors to continue abusing our capital markets, or you can remain impotent as you have been for decades and aid the bad actors who seek to bastardize our capital markets for their own gain.