February 20, 2022
As a retail Investor I am in support of this proposed ruling because its important for a transparent market that we have public access to the daily share borrowing reports.
Also - I think it needs to clarify further a few points:
1. Borrowed shares may not under any circumstance be used to cover or close FTD or FTR positions.
2. Borrowed shares may not be rehypothecated or used as collateral to borrow more shares.
3. Borrowed shares must have a clearly stated an enforced settlement timeframe.
4. Beneficial owners of shares held through brokers must be notified if their broker is lending any shares out of the company they are beneficial owners in and if they are making profit off the loaned shares.
5. There needs to be a clause informing retail investors that the safest way to avoid their shares being loaned - is to hold them in their own name by DRS - Direct Registration Service - at the companys transfer agent itself.
Hopefully we move to a blockchain stock market exchange in the next couple years, as many of these new proposals would resolve automatically and truly create a fair and free market for all participants.