March 14, 2022
Q6: Securities Covered: Under Proposed Rule 13f-2, Managers would be required to report to the Commission certain short sale related data, as described above, for equity securities consistent with the Commissions short sale regulations (i.e., Regulation SHO).
o Should reporting Managers be required to report short sale related data for a different universe of securities than equity securities consistent with Regulation SHO? If so, please explain why and describe the universe of securities that would be more appropriate.
Yes, any ETF that contains the given security. Some definitions of \"universe\" may not include this, it is put here to underline its importance. SEC filing s7-16-15 details this clearly, by illustrating that short sales in the ETF generate shares that do not actually exist. If possible, any basket that contains the given security especially those traded OTC. Dark pool reporting is currently broken.
o Should other securities be included under Proposed Rule 13f-2? If yes, identify such securities, explain why, and describe what costs and benefits might be associated with such reporting.
Yes, any significant position on any security in the same sector. If you hate widget maker A and short widget makers B,C,D,E but not A to drive the sector down because you're sneaky, it needs to be reported.
o ETFs would be included under Proposed Rule 13f-2. Should ETFs be excluded from Proposed Rule 13f-2? If yes, describe why. If no, explain why not.
Good, include them. See SEC filing S7-15-16.
Q7: Economic Short Positions: Proposed Rule 13f-2 requires that a Manager calculate its gross short position in the equity security in determining whether it meets the Reporting Thresholds.
o Should a Manager also be required to include short positions resulting from derivatives in determining whether it meets the Reporting Thresholds? If so, explain why, and describe any associated costs and benefits to doing so. If not, explain why not.
Yes, deep ITM Puts are being used as collateral. Current regulations do yeild earnest price discovery. All positions resulting from derivatives should be included.
Does excluding derivative positions create opportunities to avoid triggering the Reporting Thresholds through other economically equivalent instruments? If so, please explain.
Yes, see above.
Q8: Short Position Information: Under Proposed Rule 13f-2, Managers that meet a Reporting Threshold are required to report their end of month gross short position in the equity security.
o Should a Manager also be required to separately report its end of month gross short position in derivatives, including, for example, options? Please explain.
End of week. End of month is ridiculous and you know it. This is not some intern counting positions by hand, this is the twenty first century. Any Manager who cannot track their positions inside a week should not enter them.
o If yes, should only certain derivatives be reported? Please explain.
All should be reported, end of week at the latest.
o If yes, should certain derivatives not be reported? Please explain.
All should be reported, end of week at the latest.
Q9: Short Sale Activity Information Reported by Managers: Under Proposed Rule 13f-2, Managers would be required to report on Proposed Form SHO all activity in the equity security on each settlement date during the calendar month.
o With regard to the reporting of other activity, are there certain types of other activity that should be reported? If yes, describe the other activity and describe why it should be reported.
Dark pool activity at the single digit level of accuracy. None of this 99 shares which rounds down to zero, executed thousands of times. And, 0.01-0.9 shares need to be reported as 1 share. No room for HFT manipulation.
o ETF creations and redemptions would be included under Proposed Rule 13f-2. Should ETF creations and redemptions be excluded from Proposed Rule 13f-2? If yes, describe why. If no, explain why not.
Include them, see SEC filing S7-15-16.
o Should other activity be included or excluded from Proposed Rule 13f-2? If yes, describe the other activity and describe why it should be included or excluded.
ETFs, Dark Pool activity, OTC baskets - all of them. It may seem like cat and mouse, forcing the architects of our economy's demise to find new strategies, but we need time to recover. Cross that bridge once it's built.
Q10: Indirect Short Positions or Short Activities: Managers meeting a Reporting Threshold would be required to report a gross short position in an ETF, but would not be required to consider short positions that the ETF holds in individual underlying equity securities that are part of the ETF basket in determining whether the Manager meets a Reporting Threshold for such underlying equity securities that are part of the ETF basket.
o Should Managers be required to consider short positions that the ETF holds in individual underlying equity securities that are part of the ETF basket in determining whether the Manager meets a Reporting Threshold for such underlying equity securities that are part of the ETF basket? If yes, explain why. If no, explain why not.
Yes, see SEC filing S7-15-16.
o Are there other diversified portfolio products in addition to ETFs that should be included? If yes, describe the product. Describe why, or why not, a Manager should be required to consider short positions in individual underlying equity securities of the products basket of assets.
ETFs, Dark Pool activity, OTC baskets - all of them.
Q11: Frequency of Reporting: Under Proposed Rule 13f-2, a Manager that meets a Reporting Threshold must file Proposed Form SHO with the Commission within 14 calendar days after the end of each calendar month.
o Is monthly reporting by Managers appropriate? If so, explain why. If no, explain why not and describe an alternative frequency of reporting that is more appropriate.
Goodness no. Weekly reporting is generous as it is. End of day is viable, weekly is a worst-case compromise.
o Does reporting within 14 calendar days of the end of the calendar month provide reporting Managers sufficient time to accurately report the short sale related information as described in Proposed Rule 13f-2? If no, please explain why not and describe any suggested alternative timeline(s). Alternatively, is the 14 calendar days after the end of the calendar month reporting period for Managers too much time? If so, please explain why and describe any suggested alternative.
This is considerably more time than they need. Beginning of business week for the prior business week to account for holidays. Two weeks is too much.
Q28: Is the Commissions estimation that, over the course of a year, for every short position created by a short or short exempt sale order, there will be an equal and opposite number of buy to cover purchase orders placed in order to cover, and ultimately close out, those short positions, an accurate projection of how frequently buy to cover order marks will be used? If there is a more accurate means of estimating the volume of anticipated annual buy to cover order marks, please describe its structure and why it is more accurate.
Read your own report, SEC filing S7-15-16. Clearly this is not happening and has not been for many years.