March 28, 2022
I support the approval of SR-NYSE-2021-45 and the SPARC warrant.
The concerns about volatility and manipulation in other submitted comments under this rule change are unfounded and do not reflect reality. Many pre-deal SPAC warrants already trade with no such problems. Plus the existing SPAC warrants are far riskier since they are 15% out of the money and have an underlying security that dissolves (rendering them worthless) in just two years. The SPARC warrants are at the money warrants that cannot expire worthless for 10 years. That is a far safer and less volatile setup than the existing SPAC warrants. Therefore, it is absurd to object without any basis in reality to this absolute improvement over the status quo.
The SPARC warrants and SR-NYSE-2021-45 will bring more efficiency, access, and protection to capital markets. Businesses and retail investors would benefit from this rule change. Businesses would face less fees to access capital markets. Retail investors would have the same access as any other party to such deals, unlike the present. Deal sponsors must bear the expense to list SPARC warrants, but cannot have a successful SPARC listing (and recover the listing cost) if they lack a track record of deals that businesses and investors can value. This feature protects both businesses and retail investors from unscrupulous sponsors. All this means that the new instrument and its rule change will further streamline and fortify our capital markets for the most important participants: businesses and retail investors.
Please approve SR-NYSE-2021-45 and the SPARC warrant immediately.