Subject: Release No. 34–94313; File No. S7–08–22 Short Position and Short Activity Reporting by Institutional Investment Managers
From: Jens-Christian Schulze
Affiliation:

Oct. 23, 2022

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Dear Sir or Madam,

First, I would like to express my pleasure that the SEC has given me the
opportunity to present my concerns. I think it is very important and
welcome that the SEC addresses the concerns, opinions and suggestions of
all investors in the U.S. stock market.

About myself: At 61, I am a bit older in terms of years, but still quite
young in terms of my stock market activities. I have been investing in
stocks for just under two years. One motivation to do this is to invest
a part of my (rather modest) assets in companies that I believe can
contribute to solving acute problems with their concepts. As examples I
would like to mention the companies Ideanomics (IDEX) in the e-mobility
segment, Kalera (KAL) in the nutrition segment and Conformis (CFMS) in
the health segment. My approach is constructive in nature. That is, I
want the companies in which I invest to be successful and ultimately
allow me, as a shareholder, to share financially in that success,
whether by way of dividends or whether by way of rising share prices
that allow me to sell my shares in the company at a profit.

This approach contrasts with the approach of short selling, which I find
destructive. Here, people speculate (or should I say bet?) that a
company will fail and, in the best case, go bankrupt from the point of
view of the short seller. To earn money with the misfortune of others is
immoral in my opinion. That can't be the purpose of a stock market!

In my opinion, it is literally criminal when financially strong fund
companies abuse their market power (money, political connections, media
influence) to deliberately drive ailing or up-and-coming companies into
bankruptcy in order to make money along the way. Not only interesting
business ideas may be lost, but also countless people may lose their
jobs and thus face acute existential hardship.

When asked why short-selling exists at all, one stock market expert told
me that it has a market-clearing function, and that unfair companies are
identified and made "harmless". I cannot follow this approach. In a
market society, "weak" companies sooner or later disappear from the
scene all by themselves, but before that they at least had the chance to
do it right without being harassed by short-sellers.

Perhaps my ideas regarding a fair, constructive stock market are richly
naive. Nevertheless, I would like to politely ask you, ladies and
gentlemen of the SEC, to critically and unsparingly scrutinize the
actions of large fund companies, market makers and credit institutions
to the extent to which these institutions do not use their dominant
position in the market to enrich themselves illegally and not least also
at the expense of private investors.

Since I am unfortunately far too inexperienced and ignorant in matters
of detail, I would like to refer at this point to the statements of the
investor group "We The Investors" with regard to transparency, fairness
and control in share trading.

Yours sincerely
Jens-Christian Schulze