April 20, 2022
The only thing I see this proposed SFTs as a method to avoid the obligations that an entity incurs in the name of providing liquidity. I understand the desire to provide a liquid market, but that cannot sacrifice the proper resolution of obligations from an entity.
For a fair market to exist, all obligations must be met and met within the terms and conditions presented at the time the obligation was made, regardless of if it was to a retail trader or larger entity. Not provided a way to kick the can, to change hands, or delay the consequences of the obligation, but met. A rule like this only communicates one thing: the financial sector is rigged for entities that can use something like this and against those who can't.