April 20, 2022
If SEC is really doing what it is intended to, ensuring a safe, transparent and fair market operation, then how is it possible to even allow rule changes like this to be proposed
If proposition NSCC-2022-801 is set as a rule, it would allow Wallstreet to evade the risk it has ammassed by opening naked short positions that lead to FTDs that need to be repurchased. By implementing the proposed Securities Financing Transaction Clearing Service these short on securities institutions would gain an unfair market advantage since it allows them to evade their FTD obligations.
If the implmentation of this mechanism is allowed, Wallstreet will even more blatantly steal from market participants when the risk of naked shorting and comparable shenanigans is evaded by rule change after rule change
This proposal is written by Wallstreet for Wallstreet and goes completely against retail investors who can't cheat their way out of their obligations like big Wallstreet institutions can
If the SEC does not want the public to lose all faith in the US stock market and want foreign investors to keep investing in US markets, this proposal can not be allowed to become a rule