April 20, 2022
I'm concerned about this rule proposal. The market is already flooded with over lending. The lack of transparency in short interest and especially naked shorting (Which should be illegal) is appalling. Large institutions need to take accountability for their actions. This is most disappointing. I've read the proposal and this further complexity is not what the market needs. Price discovery is most important and this rule would distort that discovery from more over lending. Naked shorting should be illegal due to obvious reasons and if this rule goes through, it'll remove that infinite risk of such short interest. Malicious, Predatory, Risky business practices should be deterred and not promoted through SFTs. Sounds like this will be just another version of the \"Reverse Repo\" mechanic.
This rule does not contribute to a \"fair market\". Market Makers will gain indefinitely through naked shorting with complete downside of those on the opposite end of the trade. The opposite end of the trade are simple long term company believers. FTDs are already \"reset\" through a variety of methods such as derivatives thus not allowing them to reach their 30 day mark where the security needs to be \"delivered\". I'm completely frustrated to see rules like this being proposed that only favor reckless institutions. Please consider the words of us retail investors more in your future regulations. We've been getting more knowledge in market structure. We're not here to gamble but to save for our retirement in companies that we believe will provide such benefits to us.