Jul. 27, 2023
I hope this letter finds you well. I am writing to express my strong support for Rule S7-32-10 and to urge the Securities and Exchange Commission to take decisive action in addressing corruption within the market, particularly in relation to the systemic risks presented by entities like Citadel Securities. As we reflect upon the devastating financial crisis of 2008, it becomes evident that corruption played a significant role in the collapse of the global economy. The consequences of that crisis were felt by millions of individuals who lost their homes, jobs, and savings. It is imperative that we learn from history and take proactive measures to prevent the recurrence of such a catastrophic event. Rule S7-32-10 presents a critical opportunity for the SEC to strengthen regulatory oversight and tackle corruption head-on. By addressing the systemic risks posed by entities like Citadel Securities, the SEC can protect investors, promote market integrity, and ensure the stability of our financial system. Citadel Securities, as one of the prominent market-making firms, wields significant influence and has the potential to disrupt the market if left unchecked. The interconnectedness of its operations, coupled with its size and complexity, creates a systemic risk that must be addressed with utmost urgency. It is essential that the SECclosely examines the practices of such entities, ensuring that they operate under strict regulations and adhere to transparent and fair market practices. The events of the 2008 financial crisis serve as a stark reminder of the consequences of unchecked corruption and the risks it poses to the entire financial system. Institutions engaging in fraudulent activities, deceptive practices, or market manipulation must face rigorous enforcement actions to deter future misconduct and protect market participants. The SEC should allocate sufficient resources to its enforcement divisions to investigate and prosecute those responsible for corrupt activities. In addition to addressing corruption, the SEC must also focus on enhancing transparency and accountability within the market. Stronger reporting requirements, improved disclosure mechanisms, and closer scrutiny of conflicts of interest are essential to safeguarding against systemic risks. By promoting greater transparency in financial transactions and strengthening market surveillance, the SEC can effectively identify and mitigate potential threats to the stability of the financial system. Furthermore, it is crucial for the SEC to collaborate closely with other regulatory bodies, such as the FinancialStability Oversight Council (FSOC) and the Commodity Futures Trading Commission (CFTC), to ensure a comprehensive and coordinated approach to tackling systemic risks. Regular information sharing and joint efforts will bolster the effectiveness of regulatory actions and minimize regulatory arbitrage. In conclusion, I wholeheartedly support Rule S7-32-10 and urge the Securities and Exchange Commission to adopt a robust regulatory framework to address corruption and systemic risks within the market. The lessons learned from the 2008 financial crisis must guide our actions today to protect investors, restore trust in the financial system, and prevent future catastrophic events. Thank you for your attention to this critical matter. I trust that you will consider the concerns expressed in this letter and take decisive action to safeguard against corruption and systemic risks. I am available to provide any further information or assistance that may be required Regards, Jorge Bahena, MSN, RN