Apr. 20, 2022
As an investor in the stock market in the United States, I am appalled by the proposal of SR-NSCC-2022-801. This rule would further exploit small investors by allowing larger investors to utilize a new exploit to cover for their losing short positions by investing in Securities Financial Transactions (SFTs). The Frank Dodd act requires reporting on Failure to Delivers. However, enforcement on preventing Failure to Delivers is nonexistent. Creating SFTs to allow shorts to cover their risk without covering their short position will further exploit Failure to Delivers. When a Failure to Deliver occurs, the stock price is unfairly manipulated by the refusal to repurchase a stock that was sold short. By creating SFTs, this bill will allow Failure to Delivers to stack up to obscene levels. Simply put, the supply and demand seen on the market will not be representative of the true supply and demand of the underlying security. If this proposal passes, it shows great incompetence of the SEC to protect all investors as promised.