Aug. 2, 2023
Honourable Chairman Gensler & co., I am writing to you as a household investor to express my full, unequivocal support for SEC Rule Proposal S7-32-10 (Position Reporting of Large Security-Based Swap Positions / Prohibition Against Fraud, Manipulation, and Deception in Connection with Security-Based Swaps). As the SEC explicitly states, some of their primary functions are to “inform and protect investors”, “provide data” and “regulate securities markets”, and Rule Proposal S7-32-10 seems to be a foundational building block that covers these bases. Swaps reporting, transparency and data collection should’ve been in place a long time ago and Rule Proposal S7-32-10 is not only a welcome development, but also a crucially important and absolutely necessary step towards creating a sustainable environment for fair and equitable capital formation. Financial innovation can only succeed when there is transparency and open disclosure and the opaque nature of derivatives - such as large security-based swaps - puts the health of our capital markets at risk. I’ve also read the comment that was left by the 13 members of the U.S House of Representatives stating their position against Rule Proposal S7-32-10. They mention that they support regulatory changes and increases in transparency but only for regulatory purposes. They seem to want transparency…but not for people like me. This is completely unacceptable but well within the realm of what I expect from politicians who collect millions of dollars in campaign contributions from the same parties who benefit from hiding and concealing their risky derivatives positions. I appreciate all of the hard work that the Commission has been putting in over the last several years and I hope that we can continue our march towards fair, transparent and orderly markets. Yours, Nuk