April 23, 2022
This rule is written to circumvent requirements, a clear attempt to launder illegal naked shorts and FTDs. The DTCC and the NSCC both know naked shorts and FTD and the like need to be cleared.
Brokers, hedge funds and the like have acquired debts they do not and/or cannot pay. A perfect example is Citadel owing (per their 2021 statement) over $65 billion in securities sold, not yet purchased, at fair value.
The passage of this proposal would give hedge funds, brokers, banks, and many others an even greater advantage over retail while further suppressing market transparency.
Yet no amount of revising can change the fact that this rule allows hundreds of billions of dollars to go unpaid while harming retail investors, retirement funds, mutual funds, and others.This is lending of a synthetic. This filing is just another deceptive loophole. This is not example of a open and fair market or capitalism, this is protectionism.