Mar. 15, 2023
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. To Whom it May Concern, As an international investor in the US Markets, this proposal leaves me confused and concerned. Why is the SEC focusing on conflicts of interest "in certain securitizations" while Market Makers are operating Hedge funds? They control order flow, as you well know. This means they control household investors information. Forget outright fraud, they can simply route preferential orders to their own Hedge Fund arm to recieve the best possible prices via HFT. The Arbitrage potential is outrageous. As a household investor, it's like playing poker... except the dealer is also a player, knows your cards, and is feeding itself superior hands 99% of the time. This new proposal will open even more doors for Hedge funds and other market manipulators to abuse the systems in place, to the detriment of household investors. The proposed rule exempts reporting certain securities if they are sold to accredited investors. This reduces transparency within the markets while also hiding vast swathes of valuable information from household investors. This limits our individual capacity to make sound investment decisions. This, to me, is antithetical to the core purpose and supposed values of the SEC and similar regulatory bodies. A hedge fund could simply create fake accredited investor accounts and avoid transparency by selling securities to themselves before shifting them into the market, for example. This avoids any and all regulatory oversight, with absolutely no benefit for anyone but the Hedge Fund. I shudder to think at what kind of nefarious malevolence a market maker like Citadel could weaponise this degree of obscurity towards. Be better, SEC. I know there are good people working there. No more help for billionaires to hurt household investors and the poors. Just, no more, please. Thank you for your time.