December 16, 2021
It is paramount that all swap activity that involves the equities market at all be as highly regulated as the traditional equities market. Without the regulation of swaps entities are capable of hiding positions, and over leveraging themselves on a grand scale.
As is evident with the Archegos incident, over leveraging through swaps is rampant in the US Stock Market. It is foolish to think Archegos is the only, or largest, entity trading this way. This puts the whole system at risk, and can even spill into the banking sector.
It is the SEC's responsibility to keep the stock market an even playing field for everyone whether that is data transparency, insider trading or the derivatives market. It is commonsensical, and should not have to be said, that fraud is never ok in any equities market.