Apr. 20, 2022
Large financial institutions lack accountability and transparency. As a retail investor, I'm disappointed and extremely concerned that SR-NSCC-2022-801 is being proposed. This rule would reduce true market price discovery through continued lending and removes the infinite risk of naked shorting entirely. If there is a possibility for infinite profit from derivatives like buying calls, then there should be a possibility for infinite loss in shorting. This new proposal would become an outrageously unfair advantage for market makers, who can excessively naked shorts securities, and create infinite downside for those on the wrong side of their shorting. This rule does not contribute to a "fair" market by any means. FTDs can already be "reset" through various methods such as deep out of the money puts, not allowing them to reach their 30-day mark where the security needs to be delivered. This policy has been proposed twice before under different guises and thankfully has not been passed and I hope the SEC will do the same again with SR-NSCC-2022-801. I am appalled that market makers and financial institutions propose such blatant exploitative methods repeatedly trying to re-write the rule book in their favor. I would firmly ask that you deny the SR-NSCC-2022-801 proposal. Thank You, Kyle Hauser