Apr. 20, 2022
As a Canadian, my perception of the US stock market continues to decline especially when rules such as these are being proposed that appear to further obscure transparency and magnify existing unfair market practices. Why this rule was even proposed is quite ridiculous as it benefits only the market makers who do not want to face the consequences of failing-to-deliver from years of naked short-selling under the guise of providing liquidity. This rule further perpetuates the issues with price discovery caused by giving these market makers exceptions to provide 'liquidity' by creating naked shorts while removing the downside risk by being able to avoid failure-to-delivers. How can anyone trust the price of a stock listed on the US markets when the fundamental market mechanics of supply and demand are being violated when shares can essentially be counterfeited without consequences? While these may be my views, my sentiments towards the US markets are shared amongst many here in Canada and if this rule is passed, the SEC is making it clear they don't care about retail investors around the world at all. Passing this rule will only accelerate the loss of trust and confidence in the US markets here and around the world. Please do the right thing as many great companies have started in the US, but I can't see how the new generation of investors in the future will want to invest in US companies through the stock market when there is zero confidence in market regulations or SEC enforcement that protect retail investors.