April 22, 2022
Good Morning,
I understand that their is a duty that needs to be upheld in the stock to all investors. However this new proposal actually hurts retail investors in support of favoring these big banks and hedge funds.
In the proposal you explain that SFT deadline can be pushed back in light of a potential squeeze that is occurring thus giving the big banks and hedge funds more time as well as the ability to delay a organic squeeze. So this actual favors big banks and hedge funds because they are giving more time to find liquidity before margin calls will they keep pushing the deadline back by only paying a small fine. How is this fair to retail investors? How does this protect us? In reality by moving forward with this proposal you are just enforcing the loopholes that these big banks and hedge funds can jump through while retail are tied. Plus it also proves retail right that we are indeed not a fair market. That SEC is complacent with whats going on than rather change it. Guess history will repeat it self from 2008 to 2022.
Next lets talk about the fire sale provisions. Again this is very favorable to big banks and hedge funds. The fire sale provision prevents retail investor from investing in a particular ticker that hedge funds and big banks have withdrawn from. What do I mean by this is when they withdraw the ticker dips enough for retail investors to get in and invest. If this is a fair market why are we preventing fire sales from happening. How does this protect retail investors?
It seems like these new proposals are to screw over retail in a legal way but give all the big banks and hedge funds all the protection. In all honesty, where are the proposals and rules that benefit retail investors. Instead we get called dumb money by trying to have the same advantage as the 1% as the hedge funds and big banks. But instead we get this proposal that actually hurts us.
My proposal to SEC is, what are you doing? How can you insure to retail investors that we matter? How can you protect us? How do you plan to make the stock market fair and just for everyone? How are we going to fix these naked shorting? Dont act like it doesnt exist cause it does. What are you going to do about dark pools? What are your plans to prevent loopholes and hold hedge funds and big banks accountable? Will there be more than just fines for these illegal tactics? What proposals and rules are you going to implement that protects retail investors?
Some questions to answer and I hope it makes you think. Theres more to hedge funds and big banks in the markets. Without retail investors there will be no market. Dont make the same mistakes you did in 2008. Do better. Be better.