Oct. 08, 2022
Dear Secretary Countryman: I am writing in strong support of rule 10c-1, “Reporting of Securities Loans.” I am a strong supporter of transaction-by-transaction reporting. It is clear that aggregated reporting is not transparent and provides far too much rope where fraud can be hidden in aggregates. Why should one individual or entity suffer a worse execution while another individual or entity benefits from a better execution just because it is more convenient for certain institutions to report their short-selling practices in the aggregate? It is wholly unfair and contrary to the requirement of best execution, and so it should be a mandated requirement for transaction-by-transaction reporting. The new rule would also provide any victimized companies a greater ability to defend themselves against predatory short selling, as short selling in the dark harms actual competition and price discovery. The enactment of this rule would also introduce the ability for the general public and public companies to serve as watchdogs for the SEC as an initial line of defense against abusive practices. By being able to monitor short selling for securities fraud more granularly, the public can help strengthen the SEC's ability to fulfill its mandate and to help weed out market participants that are working against SEC rules—all at no additional cost to the SEC. Sincerely, Marks Kastens