Apr. 20, 2022
Good morning, I hope this email finds you well. I am once again reaching out to the SEC to provide comments on the proposed rule changes that would negatively impact market function, especially for the broader retail investor. Markets are meant to be open and free, but we have seen over the last year and half now that it is not the case. I am sure some, if not many, are well aware of this and it upsets me to know our protection service isn't actually doing what is best in the interest of the American people. The rule changes, which to me became an issue with the proposed SR-NSCC-2021-010, are aimed at creating loopholes to escape risky positions. These positions are meant to be illegal in their entirety, but apparently there are ways around this through the use of terms "reasonable location" and "entities have reason to believe they may find", plus they are given up to T+2, plus 35 days to accomplish this task. This creates an ever-increasing problem of failure to delivers (FTDs) which are piling up and robbing from the American public, let alone the global people invested in our economy. All of this comes to, you guessed it, naked short obligations. While there is ample evidence and documentation from various business leaders who have been shorted into the ground through these legal loopholes, the concept that the above SR-NSCC-2022-003 / -801 would allow the NSCC members to avoid fulfilling their naked short obligations to close their positions through price discovery on the open market is one of the most ridiculous I have ever seen. The rule itself is clearly aimed at removing the infinite financial risk that is tied to a naked short position, and again may I add why it is also meant to be illegal. It is a rule proposed for naked short laundering. If an entity engages in a naked short position, they are meant to be exposed to infinite risk because they did not bother to short the object after having it in their possession. The infinite risk is tied to this concept. Those who are engaging in this behavior are well aware of the risk, they just didn't think they would get caught in the red. Not only is the rule change a blatant disregard for the law and supposed beneficial function of the financial industry, it would further obfuscate the trail of evidence that points to the rampant securities fraud and violations of Reg SHO. There are consequences for breaking the laws and laws must function for all or they aren't true. There has to be true ramifications to the ridiculous shorting and payment for order flow systems in place (which is literally a fancy word for front running the market and blatantly disregards the NBBO). Entities are trapped in a situation where they have been trying to make profit off of the backs of Americans and retail investors by bankrupting companies and I will not stand by as another rule proposal aims to let them off. To reiterate: the proposed rule change SR-NSCC-2022-003 / -801 would allow the NSCC members to avoid fulfilling their obligations after engaging in naked shorting by purchasing their shorted securities on the lit market. This removes price discovery in its entirety. What is the point of supply and demand if there is infinite supply? The most basic function of supply and demand economics must be upheld. These NSCC members are trying to get out of creating an infinite supply of securities, which plummets demand and price with it. As an American citizen, and retail investor involved in the stock market, I implore you to shut down this rule. It is blatantly disrespectful and outright should be illegal. I want to thank you for your time and consideration in this process. Best, Dr. Robertson