Apr. 09, 2021
To whom it may concern,
I will try to keep this as short as possible, but to try to get my point across at the same time.
The SEC is at a crucial juncture in which not only American investors, but international investors are evaluating the legitimacy of the SEC as a regulator. Actions SEC takes or chooses not to take, and the magnitude of these actions will shape confidence and TRUST in the American economy and stock market as well as the global markets.
There are many variables when it comes to not only a single economy, even more variables to a global economy. This is true for the stock market as well.
If there is one constant in any of these variables that is always accounted for is TRUST. TRUST that the system is fair and free. TRUST that there is nothing but transparency. TRUST to Have clear actions. Actions speak louder than words. Deliver relevance. Exceed expectations. EVERY economy and stock markets first value is and always will be TRUST.
The stock market involves much risk and uncertainty. Let's face it, the majority of people who invest in stocks (directly, through funds, or in a retirement plan) don't fully understand how the capital markets actually function. Thus, there needs to be some faith in the process. If you think there is a high chance of being cheated, like the three-card Monte games played on the street, you simply don't play. People who are generally more trusting are also more likely to invest in the market. Those people who are less trusting are less likely to invest in the market. Without trust, people won't invest in the stock market. This impacts participation in retirement programs at work and owning mutual funds, as well as direct ownership of stocks.
I extremely agree with the new transparency approaches of this rule and think it would have to be applied as soon as possible (to have public control about dark-pool trades, naked shorting, Fails To Deliver and other usual practices which, thanks to their abuse, members of the DTCC so widely use to manipulate the price of stocks).
I also agree and look forward for the NSCC assessing the risk of members in a daily basis, it's possibility to demand higher SLD daily, and for the DTCC having allowance to liquidate member's possitions if they jeopardize the NSCC's ability to complete the day's trades.
The proposed companion amendment to DTC-003 is a necessary one. It holds person(s) accountable for their actions. Puts transparency and TRUST back into the system that is so desperately needed.
Please approve SR-NSCC-2021-801.
Thank you for your time,
Michael Sampson.