Oct. 8, 2022
October 8, 2022 As of October 2022 it ought to be common knowledge that swaps, and more precisely security-based swaps, are primarily used to manipulate markets or defraud actual shareholders. I use the word \"actual\" because these swaps are generally used to allow for the criminal manipulation of prices through majority control of assets the swaps are based on. I would be more precise in stating exactly which swaps are fundamentally fraudlent, however certain employees at the CFTC have colluded with these would-be criminals, and consequently swaps are not reported in a respectable way. A security based swap is inherently a derivative position, which grants no actual rights as a shareholder, and yet the SEC allows the largest criminal organizations in America to dictate the underlying markets through these entirely undisclosed position. A security-based swap ought to be considered inherently fraudlent unless proven otherwise, given the track record of securities with outsized swap positions. This means I strongly support any requirements for disclosure of all swap positions, I support the need for such rules to be enforced immediately, within minutes of the swap being created. In fact, I would support the complete ban of security-based swaps on the premise that the overwhelming majority of swaps of this type are inherently fraudlent. As a non-American investor in American markets I have lobbied my national government against allowing access to American markets on these grounds, I have delivered tips to both the FBI and American embassies in Europe. I don't have much confidence in American markets, given the fact that proving continous fraud in the majority of markets is trivial, and as such I cannot recommend exposure to American markets professionally or personally. The ongoing regime concerning swaps ensures a mounting systemic risk for American investors as relevant markets become demonstrably unmoored from their respective assets. All counterparties to a swap ought to receive mandatory minimum prison sentences if swap disclosures are found to be incomplete or late. While seemingly harsh, it is absolutely preferrable to the overt negation of property rights that current rules will inevitably lead to. Any investor in American markets ought to know that security-based swaps, as they currently exist, allow for (or \"guarantee\", depending on whether or not you believe in law enforcement for financial crimes) the equivalent of a bank run on all brokerages concurrently, whereby all brokerages will be nominally exposed to infinite risk. Naturally, this will be devestating. As such, no law, regulation or policy is too excessive, be it for reporting of positions, influencing parties or officials, or the netting of such positions within firms.