Oct. 29, 2022
October 29, 2022 This is so surreal to be truthful. How is it that the very organizations that are supposed to protect and bring fairness are doing the exact opposite? I am all for daily reporting of swap positions. To create a fair and transparent market where small individuals actually have a chance to participate in. I am all for: -Transparency and public disclosure of swap positions. (Daily reporting) Excessively large swaps are a threat to financial and national stability (for example archegos) -For the threshold be lowered to $100 million / $200 million gross. While the rule prohibits things like spreading a large swap position out to evade the threshold, this will be done and the SEC may or may not be in a position to detect it. By providing the public with more data, and slightly lowering the threshold, more of this fraud may be detected. It is important that the rule be hardened against evasion (eg by multiple actors colluding to build a large position through separately acquiring smaller positions that evade reporting requirements). We do not want to see the rule watered down in practice. -Applying it internationally so funds and firms cannot use borders to evade the rules of the market. - Look at the entire swap portfolio to determine reporting requirements, not just parts: The Commission should follow the precedent in Rule 13h-1, which identifies large traders using the traders entire position in all NMS securities. The overall picture of a traders appetite for excessive risk can only be formed by looking at their total swap position. Allowing large traders to take on excessive risk via swaps in many different individual securities while avoiding reporting requirements is against the spirit of the rule, and goes against the Commissions prior rulemaking. -Security-Based Swap Position include all security-based swaps based on the same underlying security or reference entity, regardless of whether they are debt (including CDS) or equity-based, so that funds and firms cannot evade reporting requirements by using different types of complex financial instruments. -I Agree with the definition of security-based swaps and state that it must be appropriately wide to minimize evasion. -I Agree with daily reporting and praise the Commissions public release of the data. It empowers citizens to protect themselves from excessive risk and the companies they own from hostile actors. The Commission should absolutely utilize its authority under Section 10B(d) of the Exchange Act to publicly release data. Fraud is widespread, and the resources of the SEC are limited. By allowing the People to see potentially dangerous swap activity, they will be better able to assess the investments they make and observe the dynamics of the market. A more level playing field is absolutely in the public interest, and the damage that can be done via swap activity (e.g., Archegos) necessitates that investors be equipped to defend themselves and the markets they use. -Please finalize and implement rule asap.