Subject: S7-32-10: Webform Comments from Michael
From: Michael
Affiliation:

Sep. 10, 2023

I am in support of the Commission's desire to promote
and encourage greater transparency around the use of equity swaps in
capital markets with the implementation of a rule that would require
prompt reporting of information related to security-based swaps
positions.

It is my opinion and recommendation to the Commission that reporting
should be daily, at a minimum, for positions that exceed at least $10
million of the face value of a derivatives position.

For further transparency, counterparties in swaps positions--whether
facilitated by master netting, bilateral netting, or other
means--should also need to adhere to further reporting requirements.

I believe that once armed with timely and accurate information
regarding equity swaps, the Commission will be better prepared to
fulfill their mandate of protecting investors, maintaining fair,
orderly, and efficient markets, and facilitating capital formation;
for everyone.

I believe it is impossible for the Commission to fully effect and
enact their mandate without this time sensitive and crucial
information.

In closing, I would like to add that when persons, parties, or
entities do not promptly file with the Commission a schedule
disclosing certain information related to their security-based swap
position, a fine should be applied of at least half of and/or equal to
the threshold. It is my experience that the Commission's past and
current fines are so insignificant, that those being fined do not take
them seriously, and fines are just a & cost of doing
business

By effectively penalizing those who do not comply, I believe the
Commissions ruling will hold greater enforcement ability, as well as
serve as a deterrent to those who would not promptly report, or make a
habit of not promptly reporting.

Thank you for the opportunity to comment.