April 20, 2022
Allowing the NSCC to create a new type of Swap in order to hide a security from price discovery or a market participant from the consequences of bad trades is counter to the SEC's stated goals of protecting investors and making and maintaining an orderly, fair, and functional market.
I strongly oppose this rule on the grounds that it will encourage bad behavior by institutional market participants and keep true price discovery from the market. If there is systemic risk in the market from non-covered positions such as FTD longs or naked shorts, maybe try and implement rules to shorten the settlement cycle from T+2 and/or give more transparency to short interest or the OTC and non-lit exchanges so as to keep these risks from growing in the first place rather than kicking the can down the road.