Oct. 08, 2022
October 8, 2022
Hello,
I'd like to begin by expressing my support for the 15 minute disclosure rule after short sales are effected.
Currently, by enabling aggregation of short sales, short hedge funds are able to hide their true position, and obscure the actual underlying price of a stock.
Retail investors such as I do not have faith in the current financial system due to inaccurate price discovery. With the advent of dark pools and internalization of orders, rehypothecation of over-leveraged positions, and aggregation of short positions, large hedge funds with teams of analysts have a disproportionate amount of power that harms true competition and prohibits accurate price discovery.
Aggregation of short sale positions are one of these such tools that eliminate competition and true price discovery. Working families and retail investors are discouraged from investing and are disillusioned about their faith in the current financial system. This rule represents one step closer to true price discovery and productive competition.