Apr. 20, 2022
The proposed rule SR-NSCC-2022-003 is an egregious affront to fair and trustworthy markets. In a functioning fair market failures to deliver would never occur. Worse than their occurance is our current state of affairs: where not only do they occur but they can remain numerous and significant well past the hard time limits set for primer brokers in Regulation SHO (t+35 or t+12 if on Threshold Security list). The idea that consistent failures to deliver can then effectively bypassed from the future buying pressure by creating fungible "SFT" instruments is theft from those who hold long positions. Failures to deliver must be force closed buy buying on lit exchanges. I never thought I'd see the day that China might have more trustworthy and less fraudulent markets than the United States, but here we are. If the United States wants to remain the financial center of the world this rule and the concepts within should be scrapped and forgotten about — SR-NSCC-2022-003 is a step backwards and in the wrong direction. The SEC should instead be spending its time enforcing existing rules by pursuing market participants who frequently and consistently fail to deliver shares. Jonathan Dumaine