Oct. 10, 2022
October 10, 2022
Transaction by transaction reporting increases market transparency, fairness and reduces risk to institutional and retail investors. Short selling currently hides in the aggregate and makes long-term investing more dangerous to retirement and pension funds.
The 15 minute requirement is a great gain for transparency in the market. Firms that complain of the costs of maintaining and reporting short selling positions are most likely the ones that gain the most from the activity being hidden. All other market participants will benefit by having a better understanding of positive and negative sentiment in a given security.
This reporting as part of the SEC's new strategic plan makes working families front and center to the conversation about investing. Short sellers are not \"investors\" in the traditional sense. They feed off of manufactured volatility and make the market less secure. A sophisticated investor (funds and pensions) should be able to understand what the headwinds are for stocks and companies to better manage risk.
Without the information that this rule would provide, there is the possibility of systemic risk being hidden in chains of obligations that could outweigh the underlying value of the securities. Knowing this will have an impact on working families and how they invest makes this rule a huge win for them.
Please consider the way that this transparency will help to alleviate many known risks to the financial system and increase in investor confidence. This rule makes sense, it will serve to allow the US to maintain its lead as a destination for investments from around the world.