Feb. 24, 2023
February 24, 2023 Swaps like total return swaps can be used to hide a huge short position for example. The problem is that it hides and distorts the true short interest of any security. Generally speaking, leaving the swap data hidden may lead to financial instability across the USA and the world. Basically, big swaps can be used to hide many things that should be legally disclosed. There is a loophole and that's precisely why I support this very important rule. However, for efficiency matters, the threshold should be lowered. It may help to detect more fraud, to prevent multiple actors to collude and open multiple small positions just at the limits of the threshold. It's crucial to prevent any attempt to evade the reporting requirements.