Apr. 19, 2022
If I am understanding this correctly, the SFTs are meant to alleviate the pressure when they need to close their positions. Step 1) make bad bet Step 2) margin call Step 3) use SFT to alleviate pressure Step 4) repeat steps 2 to 3 until pressure is less Step 5) profit. The NSCC knows that there are many Fail-To-Delivers, Naked Shorts, and other shenanigans that need to be settled and this rule would allow the BAD ACTORS to continue to fail to deliver, to continue the illegal naked shorting, to continue the corruption. There is no way anyone sees this rule and says "yup, this is to protect retail." No, this is to allow the big guys, the hedge funds, the "market makers," the clearing houses to steal from retail and put in their own pockets. Who will hold them accountable if the regulators don't hold them accountable. Then, who will hold the regulators accountable? This system is corrupt and if this rule is allowed in, this will never end. This rule cannot be passed. Otherwise, this "Free Market" about which this country is raging on is obviously just for "show." DO NOT ALLOW THIS RULE TO BE PASSED. NEW RULE = BAD.