Mar. 15, 2023
SEC rule makers, I am writing to comment on the proposed rule outlined here https://www.sec.gov/rules/proposed/2023/33-11151.pdf. As an individual investor, I oppose the "exceptions for risk-mitigating hedging activities, bona fide market making, & certain liquidity commitments," as Gary Gensler described them in a public statement. Simply put, these exceptions will lead to less fair and more corrupt markets. These for-profit financial institutions must be required to register the securities they own. If not, history has shown they will abuse these privileges. They may claim to use these exceptions under the guise of improving the markets. They only seek to improve their position, at the expense of individual investors and the companies they invest in. If these exceptions are allowed, individual investors like myself will lack access to the knowledge necessary to effectively invest in the markets. The institutions who have these privileged exceptions will use that to their advantage. The markets will not be fair. If the SEC allows these exceptions, they will be complicit in future corruption of the markets. In the past several decades, the SEC has watched and done little while these institutions have manipulated markets under the guise of risk-mitigating hedging activities, market making, or liquidity commitments. There is no good reason to think they will not abuse these proposed exceptions as well. These hedge funds and other institutions want to have these exceptions because they want to continue to manipulate the markets to their advantage and to the detriment of the individual investors. If the SEC does not stand up to them now, the problems will not mitigate themselves. Let the hedgers hedge with securities they can prove they own outright. Require the market makers to only buy and sell securities that they can prove they own. Let the free market sort out liquidity requirements. These exceptions are not needed. The technology exists for the markets to be free and well-regulated without these exceptions. These exceptions are not necessary. On the contrary, they are harmful. Sincerely, Alan Wilder