April 20, 2022
I am a retail investor, and would like to make my thoughts to this proposed rule known. This rule flies in the face of fair market mechanics, and gives unlimited power and scope to bad actors who would abuse such mechanics. It is set in place to \"alleviate Fail To Delivers\", but in action does nothing to eliminate them, and in effect protects the action of naked short selling, which is ALREADY ILLEGAL. This rule leverages the complexity of financial vehicles to put power in the hands of institutions, effectively safe-guarding them from their own bad bets. Passing this new rule would only further deteriorate the American public's faith in a \"free and fair market\". I urge you to withdraw this proposal immediately.
Thought exercise: $100 worth of Blockbuster Shares vs $100 vs Apple Shares. Can it be said that they are equal in value on any given day? I don't think so, one must consider company leadership, market cap, growth potential, etc. etc. That would be like saying every company is exactly the same (i.e. fungible) which certainly isn't the case in reality.
This seems to fly exactly in the opposite direction of how our Fair Market is supposed to work, and correspondingly, gives the bad actors yet another sanctioned venue for cheating the system. A venue that Retail has ZERO access to. It's like the opposite of capitalism