Apr. 20, 2022
I am a retail investor, and would like to make my thoughts on SR-NSCC-2022-801 known. This rule completely undermines 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. Instead of writing something like this, an insanely convoluted way to address the issues of naked short selling and failure to deliver, why not enforce the rules already in place? If I want to sell short a stock, I first have to make sure the security has shares to be borrowed. If there exist no borrowable shares, I don't get to short sell it. Why is that not true for market makers as well? 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.