Aug. 4, 2023
Office of the Secretary Securities and Exchange Commission 100 F Street, NE Washington, DC 20549-1090 Comment on S7-32-10 - Position Reporting of Large Security-Based Swap Positions Dear SEC, As a retail investor who actively participates in the financial markets, I am writing to express my strong support for the proposed rules regarding transparency in the swaps market, as outlined in the Proposing Release, Release No. 34-93784 (Dec. 15, 2021). The need for greater transparency in the swaps market cannot be overstated. Retail investors like me often find ourselves at a disadvantage due to the lack of access to critical information about security-based swap positions held by large market participants. The opacity in this market creates an uneven playing field, where institutional investors and large players can leverage their informational advantage to the detriment of smaller investors. Transparency is not just a matter of fairness; it is essential for maintaining market integrity and stability. By mandating the reporting of large security-based swap positions, the proposed rule will enable all market participants, including retail investors like me, to make more informed decisions. Increased transparency will foster greater confidence in the market, attract more retail investors, and lead to a healthier overall financial ecosystem. Furthermore, the additional analysis and data contained in the staff memorandum, added to the public comment file on June 20, 2023, further strengthen the case for implementing the Proposed Rule. It is evident that such transparency measures will contribute to price discovery, enhance risk management practices, and aid in identifying potential systemic risks. These benefits are not only crucial for retail investors' peace of mind but also for the overall stability and resilience of the financial system. I understand that there might be concerns from some market participants about the potential costs associated with complying with the reporting requirements. However, I firmly believe that the long-term advantages of transparency far outweigh any short-term implementation costs. The benefits of a transparent swaps market, where relevant information is readily available, will lead to improved market efficiency and increased investor trust. In conclusion, I urge the SEC to move forward with the Proposed Rule and embrace transparency in the swaps market. As a retail investor, I feel strongly that markets should not be obfuscated, and regulations promoting transparency are essential to level the playing field and ensure the integrity of our financial markets. Thank you for considering my comments on this critical matter. I trust that the SEC will act in the best interest of all market participants and continue to work towards creating a fair and transparent financial marketplace. Sincerely, Micah