March 24, 2021
I am an individual retail investor and would like to express my opinion regarding this new proposed rule SR-NSCC-2021-801.
I believe this rule - if enacted- is a step in the right direction towards accountability for those who engage in the short selling/stock borrowing program. It is time for an update to the current RegSHO closeout requirements and I believe that this SLD change in process from Monthly to Daily settlement is progress. Hedge Funds have shorted many promising companies into bankruptcy using naked short selling which creates synthetic (phantom shares) thereby increasing the supply of shares and diluting the price when demand cannot keep up. This has been going on for decades and the law must be strengthened to deter this illegal activity. The hedge funds that are engaging in this activity should be held accountable by margin call if necessary.
I would like to see this rule passed and implemented immediately.
Lastly on this ruling, I would like to see stronger penalties enacted for non compliance and violation of this rule. Billionaire institutions will continue breaking that law if the penalties are not strengthened to a level that will deter. As of right now breaking the law and paying a fine even in the millions is seen as a cost of doing business to them.
Thank you for your time consideration in this matter.
Michael H. Dill, Esq.