Aug. 15, 2023
To Whom It May Concern, I hereby reiterate my full endorsement of proposed rule S7-32-10. In this context, I wish to direct attention to the communication submitted to the commission on 8/9/23 by the MFA and its management cadre. While it is within the purview of the MFA to advocate for their fund managers and constituents, it is imperative to address the recurring contention regarding liquidity concerns, specifically rehypothecation and fraudulent practices, which are being cloaked under the guise of public safeguarding. These issues have been persistent disruptions within the market, necessitating their elimination. It is notable that the aforementioned rule has faced a series of delays spanning 13 years, during which the transparency of swap data has been obscured not only by the SEC and CFTC but also by entities such as FINRA and Congress. The financial landscape has been marred by numerous preventable crises, some of which exhibit indications of being deliberately orchestrated. Despite possessing this insight, the financial regulatory framework has allowed unbridled avarice among Wall Street entities and associates, permitting evasion of reporting obligations that could have brought to light the deceptive practices and transactions prevalent in our markets. The documented collaboration with clearing houses on 1/28/21 stands as clear evidence, wherein over 10 billion dollars were waived in collateral and margin requirements for institutions. This amounts to an appropriation of funds, as these orders were executed and internalized, resulting in retained monetary gains without fulfilling the corresponding obligations. Instances like MMLTP, Archegos, and the 2008 MBS collapse, all stemming from inadequate risk management and unchecked greed, underscore an ongoing cycle of transgressions devoid of accountability. In this context, I earnestly implore the SEC not only to promptly finalize and implement this rule but also to undertake a comprehensive inquiry into the entities that vehemently oppose transparency and the dissemination of information pertaining to the financial markets. The prevailing information asymmetry undermines the ethos of a fair and open market, an environment where capital can flourish organically. The immediate enforcement of this rule, aligned with its swift enactment, remains the sole tenable resolution. The MFA's counterproposal should be disregarded, as it solely perpetuates the status quo. The focus must be on nurturing genuine capital formation, wherein new investors participate in a transparent and equitable market, making investment decisions based on accessible data and bolstered by a regulatory structure that upholds fairness. The practice of institutions conducting concealed trades among themselves, shielded from public scrutiny, contradicts the principles of an impartial playing field. The dichotomy wherein they exploit our data, sometimes without our consent, while concurrently bemoaning the imbalance introduced by public disclosure, is untenable. The stock market's bedrock principle is an even-handed arena for all participants. This rule's enactment would be instrumental in curbing corruption and engendering an environment of security for investors, where comprehensive information is accessible to those who seek it. The concerns of "Smart money," which exploited the regulatory gaps and designed intricate financial instruments and maneuvers, bear no sympathy now that they are obligated to unveil their actions. The prescience of risk should have governed their initial approach. Consequently, it is prudent to advocate for the removal of derivatives from the market. I extend my gratitude once again and anticipate the expeditious realization of this rule. Yours faithfully, A retail investor