Oct. 31, 2022
October 31, 2022
I am fully in support of more transparency for the public and its hard earned investing dollars surrounding SWAPs. It is highly likely Swaps are currently being used to manipulate the actual data and positions of many major financial institutions. I am concerned that some of these excessively large Swaps are a threat to our countries financial and national stability.
The Archegos capital example comes to mind, the fallout of which has not fully impacted markets despite its cause in the negative impact on Credit Suisse, a mainstay in the financial world. If positions that large could be hidden in Swaps and threaten the existence of such a juggernaut , it is not hard to see what potentially large swap positions could do to the global economy. As such it would be nice if the SEC would support this type of rule change internationally as all markets are tied together now due to globalization.
I would also note that although it is indicated this rule would prevent institutions from spreading their swaps out over several accounts , I think assuming their is not massive financial incentive to do so is fool hearty. I would suggest lowering the requirement from 200 to 75 or 100 million. Essentially this is a great start in providing the public more data they rightfully deserve to have, but there is much more required. I hope to see more such rules passed by this organization. Daily reporting is essential for free and fair markets.