February 19, 2022
As a retail investor, I am in favor of this rule and I wish to express my thanks to the SEC for bringing this proposal forward for comment.
The only way our markets can remain free and fair is by requiring timely and accurate public disclosure on all transactions (including security-based swaps) that can influence the price for a given security.
Unfortunately, the current regulations and their enforcement are not adequate to address the distinct advantage enjoyed by institutions who can use these security-based swaps to keep cycling FTDs and drive market price in their favor in order to profit illegally.
This proposed rule is a step in the right direction, but it must be coupled with meaningful and rigorously enforced consequences for institutions engaged in regulatory violations. Meager fines only serve to become part of the cost of doing business if they fall well below the potential profits gained through violation of a rule. Therefore, I encourage the SEC to pursue meaningful penalties that include full forfeiture of all profits along with additional fines for each violation. I would further encourage the SEC to work closely with the DOJ to ensure criminal activity is promptly investigated and prosecuted to ensure institutional managers face personal repercussions for illegal activity.