February 7, 2022
The use of securities based swaps are a supposed tool for market participants (excluding retail) to wiggle their way out of bad bets or delay/avoid consequences of these bad bets and as a result disallow for true price discovery. Not only is this detrimental to the ideal of a free market, it is a threat to the overall market integrity and likely contributes significantly to the systemic risk the market is exposed to by extremely over-leveraged positions. These rule changes are a no-brainer.