Aug. 16, 2022
August 16, 2022
I support the proposed rule by the SEC to increase transparency of short selling funds and reporting of securities loans. I believe that transaction-by-transaction reporting is essential in order to eliminate the ability of these funds to \"hide within the aggregate.\" Transparency is key in ensuring that investors are aware of the risks involved in purchasing securities, and aggregates do not provide this level of detail.
The 15-minute reporting requirement may seem like a burden, but it is necessary in order to prevent fraud and abuse. We have seen too many cases where companies have been victimized by short sellers who operate in the dark. These predators harm true competition and price discovery, and their activities need to be stopped.
Increased transparency will also benefit retail investors, who will now have a better understanding of the risks involved in purchasing securities. If funds are allowed to short without disclosing their positions, retail investors will remain dangerously unaware of potential problems with a security.