Jun. 26, 2023
To the SEC: I'm in complete support of thus proposed rule, in particular, the section that reads: The Proposed Amendments also would deem holders of certain cash settled derivative securities as beneficial owners of the reference equity securities and clarify the disclosure requirements of Schedule 13D with respect to derivative securities. Personally, since I've started to be more interested and monetarily invested in the stock market, I've become surprised (to say the least) at the allowed conflicts of interests that the SEC/DTCC/Exchanges and Government(s) allow certain entities, individuals, and funds to thrive while exposing. Full (not just "more") transparency and clarity is vital for share owners to have in the stocks and companies they've chosen to back and believe in. I strongly encourage the adoption of machine-readable data language for filing Schedules 13D and 13G, as it would hopefully ensure efficient and standardized reporting that more understandable. Rule S7-06-22 brings much-needed transparency to hedge funds' short positions, which is essential for a fair and free market. Obviously these current issues and allowances for only particular sectors and entities in the markets bring concern about the potential dilution of voting power for actual shareholders if cash settled derivatives owners are considered beneficial shareholders. In order to help delineate the shareholder issue between derivative ownership and beneficial shareholder ownership, we need clear guidelines that help avoid confusion and unintended consequences from investors who can't make this a day job. Right now there are simply too many dark and clandestine ways to skirt true price action. We need to protect and prioritize voting rights and ensure that votes from ACTUAL shareholders carry the meaningful weight they deserve to carry. Full, digestible transparency without compromising fairness is the single most in important stepping stone toward a market in which current and future generations of investors and companies can learn and understand what they are investing in and how their hard-earned money can affect a company. In order for fair purchasing and selling in an up-to-date market I think we require timely reporting of short position changes that prevents hidden accumulations and price actions that make little sense. If you ask me, the Securities and Exchange Commission should address these concerns and prioritizes the protection of shareholder rights in the final rule. I hope you consider my email. Best, Dustin Gerken