Mar. 24, 2023
Dear Sir/Madam, I am writing to express my opposition to the proposed rules regarding the exemptions for risk-mitigating hedging activities, bona fide market making, and certain liquidity commitments. While the exemptions are intended to promote liquidity and stability in the securitization market, they may be exploited by securitizers to engage in conflicted practices that benefit their own interests at the expense of investors. The risk-mitigating hedging activities exemption, for example, could be used by securitizers to engage in hedging activities that benefit their own interests at the expense of investors in the securitization. This loophole could be exploited to manipulate the securitization market and harm investors. Similarly, the bona fide market making exemption could be used by securitizers to artificially manipulate the market to benefit their own interests. This exemption could be used as a loophole to engage in conflicted practices that harm investors. Finally, the certain liquidity commitments exemption could be used to avoid losses at the expense of investors in the securitization. This exemption could be exploited by securitizers to engage in conflicted practices that benefit their own interests and harm investors. I urge the SEC to reconsider the proposed rules and ensure that the exemptions do not create loopholes that allow securitizers to engage in conflicted practices. The SEC must ensure that the rules promote transparency and accountability in the securitization market to protect the interests of investors. Thank you for your attention to this matter. Sincerely, Kenneth Malone