June 25, 2023
On principle alone, why give voting rights to those that have not directly invested in a company?
Giving such rights to cash-settled derivative holders devalues market shares, further removing investors (particularly household investors) from the benefits of share ownership.
This change will introduce a substantial opportunity for further opacity, confusion and potential abuse in the market.
My question is simply: who will this change benefit? Will it be the millions of people around the world that use the stock market as a store of value for their future, owning a fraction of the system in which they live. Or will it be the minority that use these financial instruments at scale?
I consider this rule to be destructive to market trust and transparency.