Apr. 09, 2021
As a small time, average working American and investor, I find it troubling how risky trading practices of large institutions affects our economy. The risks involved with short selling 101 is that your potential losses can be infinite. Large institutions with positions in the majority of our market risk the well being of American and global economy with significantly leveraged positions that—if they fail—create massive fallout. 2008 being a great example of this. I believe that a large institutional investor with long positions across the whole market has a higher responsibility to reduce risky positions in proportion to their holdings in the market; in the event of their failure or mistake on an over leveraged short position could drastically affect the market around them. I fully support rule 801 as a step in the right direction for American markets by creating more oversight on these entities that have enough positions in the market to be ‘too big to fail.’ I jumped through a lot of hoops and financial brain teasers in order to bring myself to an understanding of these changes and to the comment I’m leaving today. I’m not a financial expert nor am I an advisor. I am just an individual concerned American taking the time to vote on this issue and make my opinion heard.