April 20, 2022
The market already lacks transparency and accountability for large institutions. I am disappointed this rule is being proposed. The continued complexity for the sake of liquidity in the markets retracts from the main purpose of the markets capital allocation and price discovery.
This rule would increase avoidance of true market price discovery through onward lending. It also removes the infinite risk of naked shorting entirely, and in so doing the deterrent of engaging in what is supposed to be very risky business practice. This proposed rule, as well as other rules/practices such as continued net settling, remove moral hazard and institutionalize reckless procedures that appear to be rampant in our markets.
It's all upside for market makers which excessively naked short securities, and all downside for those on the wrong side of their shorting. How does this rule contribute to a \"fair\" market by any means...?
FTDs are already \"reset\" through a variety of methods such as using deriviatives not allowing them to reach their 30 day mark where the security needs to be \"delivered.\"
This is very frustrating to see rules like this being proposed that only favor reckless institutions. The SRO's have failed to improve themselves with self regulation and continue to prove they exist for no other means than to benefit the institutions that they self regulate. I demand that this rule and others like it that remove transparency and stop true price discovery be rescinded.