Apr. 22, 2022
NSCC-2022-003 and NSCC-2022-801 I oppose the new SEC proposed rules (NSCC-2022-003 and NSCC-2022-801). They bail out market maker/hedge funds that are in a bad position often because of illegal naked shorting (selling fake shares and failing to deliver). The MM/hedge funds get a cash/asset “loan” to hedge/cover their losses, but they aren’t required to close out their fake shares sold positions. The net result is collusion to manipulate a stock price lower without having to actually close out their naked short position. It is very much against retail investors interests. A Frank Nez article discusses a proposed DTCC improvement being discussed to move to T+1 settlement in 2024. It might reduce fake shares being sold and FTDs, but it needs the SEC to start enforcing rules as mentioned below to have any real impact. The MM/Hedge funds sold millions of fake shares daily during T+3 and T+2 to make billions/trillions yearly and avoid accountability (other than token fine once in a while). Why would a T+1 change anything if there still is no real enforcement/penalty for fraud? Suspend/revoke their license to trade and claw back the stolen money to return to retail investors - that would reduce the naked shorting (expose/prosecute the media shills tied to the shorts, also). The SEC listed a proposed rule to stop naked shorts and fail to delivers, but withdrew it on 25 Mar 2022. Did the MM/Hedge funds object to stopping the theft from retail investors? Daryl Olson Retail Investor