Nov. 11, 2022
November 11, 2022 As a retail investor I support this rule change thank the SEC for proposing it. About time too. Securities sold not yet purchased should never have become the longstanding thing they now are. It beggars belief that system exists where a broker, not even necessarily a stock seller, can take my money, give me nothing, never be forced to actually do so, and, if theyre successfully able to delay delivery for long enough, can have their uncleard trades buried in the Obligations Warehouse meaning they never have to deliver, is just legitimised theft. Forcing brokers, who report billions of dollars worth of sold-not-yet-purchaeds every year to close out their trades and actually make good on their side of the deal should never have not been a thing, so I fully support it becoming one now. The risk to investors (both private institutional), other market participants markets themselves from allowing this to continue, and from hiding the true scale of their exposure behind these dealers own estimations of fair value is inestimable, so I fully support forced close-outs, or buy-ins, and more detailed, accurate and frequent reporting of firms actual positions in order to facilitate regulators doing the job they are (or should be) empowered to do.