Apr. 20, 2022
The following is my comment for File Number SR-NSCC-2022-003: This creates still further lack of market transparency and accountability for large institutions. You’re increasing avoidance of true market price discovery—and doing it through onward lending. Plus, you’re removing the infinite risk of naked shorting, which is the primary deterrent NOT TO DO IT in a self-regulated financial system such as we enjoy today. It would be a huge boon for those with excessive short positions, and terribly unfortunate for those who are long on securities they believe in. In short (no pun intended), this rule creates an “unfair" market imbalance by favoring those who bet against the success of American companies. It’s frustrating to see rules like this being proposed. Is there any reason why such powerful and knowledgeable firms and institutions need more regulatory help making money? Protect retail. The Ivy leaguers will get theirs regardless.