Sep. 12, 2024
I am a dedicated household investor who has long supported U.S. companies and the principles of fairness that underpin our markets. I am currently down 91%, having invested $32,000, and I attribute much of this loss to the lack of transparency in key areas of the market. This is why I strongly support the proposed FINRA Rule 6500 Series concerning the Securities Lending and Transparency Engine (SLATE), which mandates the reporting of securities loans and public dissemination of loan information. Such transparency is essential for ensuring the integrity of U.S. financial markets. The Managed Funds Association (MFA) has raised concerns that this rule could harm liquidity and reveal sensitive trading strategies. However, as an individual investor who has experienced the consequences of market opacity, I believe that transparency is critical for protecting investors and fostering a fair trading environment. Without clear, accessible information, individual investors like myself are at a disadvantage. The strength of U.S. markets relies on offering equitable opportunities for all participants, not shielding market players who benefit from a lack of transparency. The argument that revealing loan details would harm market quality is misguided. Transparency reduces systemic risk, improves price discovery, and allows all investors to make better-informed decisions. It’s not about diminishing the success of any company or investor for self-gain but ensuring that everyone has the information necessary to participate fairly. Protecting these values will safeguard the long-term growth of U.S. companies and maintain our markets’ global leadership. In conclusion, while I fully support the goals of FINRA Rule 6500 Series, I urge that any provisions allowing the suspension of reporting or data dissemination be handled with strict guidelines. Transparency is not a threat—it is the cornerstone of a fair and competitive market. To ensure the continued strength and fairness of U.S. financial markets, we must prioritize full transparency and accountability for the benefit of all investors. Sincerely, A household investor